New Delhi: The Ministry of Finance has officially prohibited the use of AI-powered tools such as ChatGPT and DeepSeek on office devices, citing risks of confidential government data leaks. The directive, approved by Finance Secretary Tuhin Kanta Pandey, applies to all AI applications within the ministry’s network.
A formal letter titled “Avoiding the Use of AI Tools/Apps in Office Devices” has been circulated across all departments under the ministry. This includes the Department of Economic Affairs, the Department of Expenditure, the Department of Public Enterprises, the Department of Investment and Public Asset Management (DIPAM), and the Department of Financial Services. Employees have been strictly advised to comply with the directive, ensuring that AI tools are not used for official tasks.
Long-Term Ban Beyond Budget Period
The order, implemented on January 29, 2025, was initially enforced just ahead of the Union Budget announcement. However, sources confirm that the restriction remains in effect beyond the budget period, indicating a long-term strategy to safeguard sensitive government data.
This decision aligns with global scrutiny over AI tools’ security risks, particularly those developed by foreign firms. DeepSeek, a Chinese AI company that recently launched its R1 chatbot, has come under increased regulatory review worldwide. While the startup claims its technology rivals leading U.S.-based AI models at a lower cost, concerns over data privacy have led to government restrictions in Australia and South Korea.
The cybersecurity experts believe the decision reflects the Indian government’s cautious stance on AI-powered applications handling classified information. Given the rapid advancements in generative AI, ensuring robust data protection measures has become a key priority for national security agencies.
India’s AI Push Amid Global Competition
As AI adoption grows globally, India is also looking to develop its own foundational AI models to compete with international players. Union Minister Ashwini Vaishnaw recently announced that the country is preparing to enter the global AI race with its own indigenous foundational model.
“The foundational models made in India will be able to compete with the best in the world. With algorithmic efficiency, we can create these models in a much shorter time frame. We will have a world-class foundational AI model in just a few months,” Vaishnaw stated last week.
Balancing AI Innovation with Security: APAC News Analysis
The Finance Ministry’s decision underscores the growing tension between AI-driven innovation and data security concerns. While AI tools offer significant efficiency in data processing and automation, their reliance on cloud-based models raises questions about data governance and privacy.
As nations worldwide establish stricter regulations on AI applications, India’s approach signals a shift towards controlled AI adoption within government institutions. Striking a balance between leveraging AI for efficiency and safeguarding sensitive information will remain a critical challenge in the years ahead.
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