Finance Ministry imposes restrictions on the use of AI tools and applications

The Indian Finance Ministry has issued a directive to ban the use of AI tools and applications like ChatGPT and DeepSeek. The circular issued on January 29 aims to ensure the security of sensitive government data and prevent potential cyber threats.

Strict step to protect government data
The order signed by Joint Secretary Pradeep Kumar Singh states that the use of AI-enabled applications on government computers could put confidential government information at risk. In view of this, the ministry has advised all employees to avoid using such tools on official devices. The order has been issued after the approval of the Finance Secretary and has been sent to major government departments including Revenue, Economic Affairs, Expenditure, Public Sector Undertakings, DIPAM and Financial Services.

Growing concerns about AI globally
The ban is part of growing concerns about AI tools globally. Many AI models, including ChatGPT, process user input on external servers, leaving a risk of data leaks or unauthorized access. Earlier, many private companies and global organizations have also limited the use of AI tools to avoid misuse of sensitive data. Earlier, Italy and Australia have also banned the Chinese AI tool DeepSeek.

Why did the government impose this ban?

Threat of data leak
AI models like ChatGPT and DeepSeek process user-entered data on external servers. This means that if government employees enter confidential information into these tools, that data may be stored, accessed or misused. Government departments contain sensitive data such as financial data, policy drafts and internal communications. If this data is leaked, it could pose a serious threat to national security and economic policy.

Lack of government control over AI models-
Unlike traditional software used in government offices, AI tools are cloud-based and owned by private companies. For example, ChatGPT is owned by OpenAI, and the government has no way to control how these tools store or process information. This can become a potential threat for foreign interference and cyber attacks.

Compliance with data protection policies-
India is working on stringent data protection laws like the Digital Personal Data Protection (DPDP) Act, 2023. If government employees are allowed to use AI tools without clear rules, it may violate data protection policies and make government systems vulnerable to cyber attacks.