The Indian Ministry of Finance has banned the use of AI tools, including ChatGPT and DeepSeek, on official government devices. The directive, issued on 29th January 2025, aims to safeguard confidential government data from potential security threats.
The circular, signed by Joint Secretary Pradeep Kumar Singh, advises employees to avoid using AI applications on office computers. It highlights the risk of sensitive information being compromised by AI models that process data on external servers. The directive has been approved by the Finance Secretary and circulated to major government departments, including Revenue, Economic Affairs, Expenditure, and Financial Services.
Concerns Over Data Security and AI
The ministry’s directive is part of growing global concerns regarding AI platforms and data security. Many AI tools, such as ChatGPT, process user inputs on servers outside the user’s control, raising fears of data leakage or unauthorised access.
Several governments and corporations worldwide have imposed similar restrictions on AI tools to prevent data exposure. These measures reflect a cautious approach to AI adoption, prioritising confidentiality and security over convenience.
The Indian government has not specified whether employees can use AI tools on personal devices for work purposes, leaving room for further clarification on regulated AI usage.
Why the Ban Was Imposed
The government’s decision is driven by multiple security and privacy concerns:
- Risk of Data Leaks:
AI tools like ChatGPT process inputs on cloud servers, which could result in sensitive data being stored or accessed externally. This poses a risk for government offices that handle classified financial data, policy documents, and internal communications. - Lack of Control Over AI Models:
AI platforms are managed by private companies and operate on external infrastructure. The government lacks control over how these tools store and process data, raising concerns about cyber threats and foreign access to information. - Compliance with Data Protection Laws:
India is strengthening its data privacy framework through the Digital Personal Data Protection (DPDP) Act, 2023. Allowing AI tools on official devices without clear regulations could lead to violations of these laws. This will eventually make government systems vulnerable to data breaches.
Also read: 339 Foreign Companies Registered in India Over Five Years
Future of AI Use in Government
As AI tools become more common in workplaces, it remains uncertain whether the Indian government will develop policies to regulate their use. For now, officials in the finance ministry and other departments must adhere to the ban and rely on traditional methods to ensure the security of sensitive data.
