
By Sunil Goyal
In a significant move to safeguard sensitive government data, the Indian Ministry of Finance has imposed a ban on the use of AI tools like ChatGPT and and DeepSeek by its employees. This restriction applies to all official devices, including computers, laptops, and tablets provided by the ministry. The decision was taken to prevent potential data leaks and ensure the confidentiality of government information.
The directive, issued on January 29, 2025, highlights concerns over AI tools’ ability to store and process data on external servers, posing a risk of unauthorized access and information breaches. With government offices handling critical data related to finance, national security, and policy-making, the ministry aims to eliminate any possibility of AI-generated leaks that could compromise sensitive information.
AI-powered tools like ChatGPT, developed by OpenAI, have gained widespread popularity for their ability to generate human-like text, summarize reports, draft documents, and assist with research. However, their increasing use in official environments has raised alarms globally. Several countries, including Australia and Italy, have also imposed restrictions on AI tools in government offices, citing data privacy and security concerns.
The ban is expected to impact the workflow of government employees who relied on AI tools for various tasks such as document drafting, data analysis, and communication. While this move enhances security, experts argue that it may also slow down administrative processes. Some suggest that instead of a complete ban, a controlled AI usage policy with strict monitoring and regulations could help balance security and efficiency.
As AI technology continues to evolve, governments worldwide are facing the challenge of leveraging its benefits while minimizing risks. The Indian government is likely to explore alternative solutions, such as developing indigenous AI models that operate within secure, government-controlled networks.
Meanwhile, employees have been advised to rely on traditional methods for documentation and communication to ensure compliance with the new directive.
This decision marks a crucial step in India’s approach to AI governance, emphasizing the importance of data protection and cybersecurity in the digital era. It remains to be seen whether other government departments will follow suit or adopt a more flexible approach toward AI integration in official operations.