The Indian Ministry of Finance has issued an order banning the use of AI tools like ChatGPT and DeepSeek on official government devices. The circular, released on January 29, 2025, aims to protect sensitive government data from potential cyber threats.
Why Did the Government Ban AI Tools?
The order, signed by Joint Secretary Pradeep Kumar Singh, states that AI-based applications may pose security risks to government systems. Following approval from the Finance Secretary, the directive was sent to key departments like Revenue, Economic Affairs, Expenditure, Public Enterprises, DIPAM, and Financial Services.
Global Concerns Over AI Tools
Security concerns about AI tools are rising worldwide. Many governments and private companies are restricting the use of AI tools to safeguard sensitive data. AI models like ChatGPT process user data on external servers, increasing the risk of data leaks and unauthorized access. Several global companies have already banned AI tools for this reason.
Does the Ban Apply to Personal Devices?
The order does not clarify whether employees can use AI tools on personal devices. However, the government seems cautious about AI and is prioritizing data security.
Why the Ban Was Imposed
- Risk of Data Leaks
AI tools like ChatGPT and DeepSeek process user inputs on external servers. If government employees enter sensitive information, it could be stored or accessed, leading to misuse. Government departments handle confidential financial data, policy drafts, and internal communications, making data leaks a serious security threat. - Lack of Control Over AI Models
The government can control traditional software, but AI tools are cloud-based and owned by private companies. For example, ChatGPT is owned by OpenAI. The government cannot monitor how such companies process and store data, increasing the risk of foreign interference and cyberattacks. - Compliance with Data Protection Laws
India is working on strict data privacy laws like the Digital Personal Data Protection (DPDP) Act, 2023. Using AI tools without regulations could violate data protection policies and expose government systems to cyber threats.
Government’s Focus on Data Security
The government’s decision aims to strengthen the protection of sensitive data. It remains unclear whether a regulated policy for AI tools will be introduced in the future. For now, finance ministry officials are advised to rely on traditional methods to ensure data security.
