In a significant move, the Indian Ministry of Finance has issued a strong advisory to government officials regarding the use of AI tools, specifically targeting platforms like ChatGPT and DeepSeek. The directive warns against using these tools on official devices, citing potential security risks and concerns over the confidentiality of government data. Let’s break down what led to this decision, the broader implications, and what the government’s next steps might be.
The Ministry of Finance’s Advisory
The Ministry of Finance, under the leadership of Finance Minister Nirmala Sitharaman, has advised government employees not to use AI applications like DeepSeek and ChatGPT on official devices such as desktops, laptops, and mobile phones. The advisory stems from concerns that these AI tools could compromise sensitive government data and documents. The Ministry emphasized that AI tools, including DeepSeek—developed by China—pose a significant threat to data privacy and security. The directive was issued by the Department of Expenditure, which operates under the Ministry of Finance, and it explicitly forbids the use of such tools on government-issued devices.
What Is DeepSeek and Why the Concern?
DeepSeek is an AI tool launched by China in January 2025, similar to ChatGPT. Although AI technologies have revolutionized various sectors, concerns around data security have escalated with the introduction of such tools. In particular, the fear is that sensitive government data stored on official devices might be at risk of being accessed or misused due to these AI models.
DeepSeek is believed to collect and store data in servers located in China, where strict laws require companies to hand over data to the government upon request. This raises the potential for misuse of data, further amplifying security concerns. As a result, the Indian Ministry of Finance’s advisory aims to safeguard the confidentiality of official government information from being compromised.
Global Context and Precedents
India’s decision to restrict AI tools aligns with similar actions taken by countries across the world. In the United States, federal agencies like NASA and the Pentagon have also prohibited their employees from using AI tools like DeepSeek, citing security risks. Other countries, such as Italy, Taiwan, and Australia, have gone a step further by imposing outright bans on certain AI applications for government and public sector use.
In Italy, DeepSeek was removed from the App Store in January 2025 after regulators raised concerns about data collection and privacy. Taiwan has followed suit, blocking its use in government agencies and public schools due to security fears stemming from its Chinese origins. Similarly, Australia has restricted access to AI tools on the grounds of potential data leaks.
What About the Public?
While the advisory targets government employees, many citizens might wonder about their own use of such AI tools. The Indian government has acknowledged these concerns and proposed a potential solution: hosting AI models like DeepSeek and ChatGPT on local servers. This would ensure that data generated within India remains within the country, mitigating concerns over foreign governments accessing or misusing it. However, as of now, this initiative is still in the planning stages, with no clear implementation timeline.
International Developments and India’s Role
Interestingly, Sam Altman, the CEO of OpenAI (the company behind ChatGPT), recently visited India. Altman’s visit was significant because it coincided with discussions on India’s growing role in the global AI landscape. India has launched the “AI Mission,” aiming to develop cost-effective AI solutions and become a leader in the field. The government sees this as an opportunity to build AI models that are secure, affordable, and effective, much like the country’s approach to space missions, where low-cost solutions have made India a global leader.
While the visit raised hopes for a positive AI future in India, it also highlighted the delicate balance the country must strike between embracing AI innovation and protecting national interests.
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