India’s Finance Ministry Restricts AI Tools Like ChatGPT and DeepSeek in Official Use Due to Data Security Concerns

Indian Government Blocks AI Tools Over Data Security Concerns

The Indian Finance Ministry has directed its employees to refrain from using AI applications such as ChatGPT and DeepSeek on official devices, citing concerns over the confidentiality of government data and documents.

The internal advisory, which emerged on social media in early February 2025, specifically highlights concerns about confidentiality breaches involving AI tools on office computers.

Risk to Confidentiality of Government Documents

The advisory from the Department of Expenditure, issued on 29 January 2025, clearly states that AI applications like ChatGPT and DeepSeek can compromise the security of confidential government documents and data.

The ministry has urged all employees to strictly avoid using these tools on office devices.

The directive reads,

“It has been determined that AI tools and AI apps (such as ChatGPT, DeepSeek etc.) in the office computers and devices pose risks for confidentiality of Govt data and documents.”

While the advisory’s authenticity has been confirmed by multiple officials from the finance ministry, it remains unclear whether other departments have imposed similar restrictions.

However, this move places India among several countries like Australia and Italy, which have already taken steps to limit the use of these AI tools due to similar data privacy and security concerns.

OpenAI Faces Scrutiny Amid Copyright Dispute

This development comes amid mounting challenges for OpenAI in India, particularly due to a high-profile copyright infringement dispute with major Indian media companies.

The company has argued that its servers are not located in India, and thus, the country's courts should not have jurisdiction over the case.

OpenAI’s CEO, Sam Altman, who is on a visit to India, has faced heightened scrutiny, especially as OpenAI continues to expand its user base in the country.

Altman himself acknowledged that India has become OpenAI’s second-largest market, with its user base in the country tripling in the past year.

He is set to meet with top government officials and industry leaders, but his visit has coincided with rising concerns around the growing influence of Chinese AI company DeepSeek, which is posing a direct challenge to OpenAI's market dominance.

China’s DeepSeek Gains Traction

DeepSeek, a Chinese AI tool, has been gaining significant attention globally for its ability to produce results comparable to OpenAI's offerings at a much lower cost.

It has prompted concerns in several countries, including India, due to its potential security risks.

As OpenAI and DeepSeek compete in the rapidly growing AI market, countries are grappling with the trade-offs between technological advancements and the potential risks to national security posed by these powerful AI models.