Finance Ministry Bans ChatGPT, DeepSeek & Other AI Tools


Monica Prabhudesai

Monica Prabhudesai

Feb 05, 2025


In a significant move to protect sensitive government data, the Indian Ministry of Finance has issued a directive banning the use of AI tools, including ChatGPT and DeepSeek, on official government devices. Dated January 29, 2025, the circular aims to safeguard confidential government information from potential security threats. Signed by Joint Secretary Pradeep Kumar Singh, the notice advises all employees to refrain from using AI-powered applications on official computers.

Finance Ministry Bans ChatGPT, DeepSeek & Other AI Tools

This directive, approved by the Finance Secretary, has been disseminated to key government departments such as Revenue, Economic Affairs, Expenditure, Public Enterprises, DIPAM, and Financial Services. The ban reflects global concerns surrounding the security and confidentiality of government data handled by AI applications.

Global Context: A Growing Concern The move to restrict AI tools on official devices is part of a larger global trend where governments and corporations are taking a cautious approach to AI adoption due to data privacy and security concerns. Many AI models, including popular ones like ChatGPT, rely on external servers to process user inputs, which raises the risk of data leakage or unauthorized access. Governments worldwide have been taking similar steps to restrict or limit the use of AI tools on official devices to prevent potential security breaches.

Why the Ban Was Imposed The Indian Finance Ministry’s decision to prohibit AI tools from being used on government devices stems from a variety of security concerns:

  1. Risk of Data Leaks AI tools like ChatGPT and DeepSeek process user inputs on external servers, meaning any sensitive government data entered into these tools could potentially be stored, accessed, or misused. Given that government offices deal with classified financial data, policy drafts, and internal communications, even unintended data exposure could pose significant risks.
  2. Lack of Control Over AI Models Unlike traditional software that is controlled and monitored by government IT departments, AI tools are cloud-based and operated by private companies, such as OpenAI for ChatGPT. The government does not have direct control over how these AI models store or process information, raising concerns about foreign access or potential cyber threats.
  3. Compliance with Data Protection Policies India is strengthening its data privacy laws with the Digital Personal Data Protection (DPDP) Act, 2023. Allowing AI tools on official government devices without clear regulations could lead to violations of these data protection policies, putting government systems at risk of non-compliance and exposing sensitive data.

The Future of AI in Government Workplaces While the ban currently limits AI tool usage on official devices, it does not clarify whether employees can use them on personal devices for work purposes. This move signals the Indian government’s cautious stance on AI adoption, prioritizing data security over the convenience of AI-powered applications in the workplace.

As AI continues to gain popularity in workplaces worldwide, it remains to be seen whether the Indian government will implement more comprehensive regulations for the use of AI in the future. For now, government officials will have to rely on traditional methods of working, at least on their office computers.

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Monica Prabhudesai

Meet Monica Prabhudesai, the tech-savvy mind behind Trak.in’s latest insights. With a passion for unraveling the complexities of the tech world, Monica keeps readers informed and engaged with her succinct and compelling articles.

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