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Finance Ministry Bans Use of AI Chatbots on Office Devices Over Data Risk Concerns

Ravi Joshi by Ravi Joshi
March 25, 2025
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In a decisive move to safeguard sensitive government data, the Finance Ministry has issued a directive banning the use of popular AI tools such as ChatGPT and DeepSeek on office computers and devices. The directive, released on January 29 by the Department of Expenditure, underscores mounting concerns over the confidentiality of official documents in an era of rapidly growing AI technology.

Key Points of the Directive

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The Finance Ministry’s recent order highlights that AI applications, including well-known tools like ChatGPT and the emerging Chinese model DeepSeek, pose significant risks to the security of government data. Citing concerns over privacy and data breaches, the directive states:

  • Risk to Confidentiality: The ministry has determined that the usage of AI tools on office devices could compromise the confidentiality of government documents and data.
  • Strict Prohibition: Employees are instructed to strictly avoid the use of these AI apps on any office computers or devices.
  • Awareness and Compliance: The directive mandates that all employees be notified about this ban to ensure consistent compliance across departments.

Global Context and Additional Developments

This step by the Indian Finance Ministry follows similar actions taken by several other countries, which have restricted the use of AI tools in official systems—particularly concerning the Chinese foundational model DeepSeek—due to pressing data security concerns.

Adding to the global dialogue on AI adoption, Sam Altman, CEO of OpenAI (the company behind ChatGPT), recently noted that India is now the second-largest market for ChatGPT, with the user base in the country having tripled over the past year. Altman is currently visiting India for discussions with top government officials, start-ups, and venture capital funds. His visit coincides with the rapid rise in popularity of DeepSeek, a cost-effective alternative developed by a Chinese AI lab that competes with the more expensive models from OpenAI.

Looking Forward

The Finance Ministry’s decision to restrict AI tool usage on government devices reflects a broader concern about digital security amid the global surge in AI technology. As governments and organizations worldwide grapple with the balance between leveraging innovative tools and protecting sensitive information, the ban serves as a precautionary measure to mitigate potential risks associated with emerging AI models.

For further updates on this developing story, stay tuned to official announcements from the Finance Ministry and related government communications.

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