In a Monday morning meeting, Thomas Shedd, the recently appointed Technology Transformation Services director and Elon Musk ally, told General Services Administration workers that the agency’s new administrator is pursuing an “AI-first strategy,” sources tell WIRED.

Throughout the meeting, Shedd shared his vision for a GSA that operates like a “startup software company,” automating different internal tasks and centralizing data from across the federal government.

The Monday meeting, held in-person and on Google Meet, comes days after WIRED reported that many of Musk’s associates have migrated to jobs at the highest levels of the GSA and the Office of Personnel Management (OPM). Prior to joining TTS, which is housed within the GSA, Shedd was a software engineer at Tesla, one of Musk’s companies. The transition has caused mass confusion amongst GSA staffers who have been thrown into surprise one-on-one meetings, forced to present their code—often to young engineers who did not identify themselves—and left wondering what the future of the agency’s tech task force will look like.

Shedd attempted to answer these questions on Monday, providing details around a number of projects the agency will pursue over the coming weeks and months. His particular focus, sources say, was an increased role for AI not just at GSA, but at agencies government-wide.

In what he described as an “AI-first strategy,” sources say, Shedd provided a handful of examples of projects GSA acting administrator Stephen Ehikian is looking to prioritize, including the development of “AI coding agents” that would be made available for all agencies. Shedd made it clear that he believes much of the work at TTS and the broader government, particularly around finance tasks, could be automated.

"This does raise red flags,” a cybersecurity expert who was granted anonymity due to concerns of retaliation told WIRED on Monday, who noted that automating the government isn’t the same as automating other things, like self-driving cars. “People, especially people who aren’t experts in the subject domain, coming into projects often think ‘this is dumb’ and then find out how hard the thing really is.”

Shedd instructed employees to think of TTS as a software startup that had become financially unstable. He suggested that the federal government needs a centralized data repository, and that he was actively working with others on a strategy to create one, although it wasn’t clear where this repository would be based or if these projects would comply with privacy laws. Shedd referred to these concerns as a “roadblock” and said that the agency should still push forward to see what was possible.

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Sources say that during the call Shedd tightly connected TTS and the United States Digital Services—rebranded as the United States DOGE Service, or DOGE, under Trump—as “pillars” of a new technological strategy. Later in the meeting, he said that there was no plan to merge the two groups and that projects would flow through them both depending on available staff and expertise, but continued emphasizing the upcoming collaboration between TTS and DOGE.

Employees, sources say, also asked questions about the young engineers, who had previously not been identifying themselves in meetings. Shedd said that one of them felt comfortable enough to introduce himself in meetings on Monday, sources say, though Shedd added that he was nervous about their names being publicly revealed and their lives upended.

Shedd was unable to answer many staff questions about the deferred resignations, the return to office mandate, or if the agency’s staff would face substantial cuts, according to sources. At one point, Shedd indicated that workforce cuts were likely for TTS, but declined to give more details. (Similar questions were also asked of Department of Government Efficiency leadership in a Friday meeting first reported by WIRED.)

Towards the end of the call, sources say, a TTS worker asked if they would be expected to work more than 40 hours per week, to deal with all of the upcoming work and potentially laid off workers. Shedd responded that it was “unclear.”