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Finance Ministry Advises Employees Against Using AI Tools Like ChatGPT, DeepSeek

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Finance Ministry Advises Employees Against Using AI Tools Like ChatGPT, DeepSeek
05 Feb 2025
5 min read

News Synopsis

India’s Finance Ministry has issued an internal advisory instructing its employees to refrain from using AI tools like ChatGPT and DeepSeek for official work. The directive, dated January 29, raises concerns about data confidentiality risks associated with these tools.

The advisory surfaced on social media on Tuesday, just ahead of OpenAI CEO Sam Altman’s scheduled visit to India on Wednesday, where he is set to meet the IT minister.

Concerns Over Government Data Security

The advisory states that using AI-powered applications on official computers and devices may compromise sensitive government documents and data. This directive reflects growing concerns about the potential misuse of AI tools and their impact on data privacy, security, and sovereignty.

"It has been determined that AI tools and AI apps (such as ChatGPT, DeepSeek, etc.) in the office computers and devices pose risks for the confidentiality of government data and documents," the note from the Finance Ministry emphasized.

Global Precedents: AI Restrictions in Other Countries

India is not the only country to impose restrictions on AI tools in government offices. Nations such as Australia and Italy have also placed limitations on AI-powered platforms, citing data security concerns.

In March 2023, Italy’s data protection authority temporarily banned ChatGPT, citing violations of the General Data Protection Regulation (GDPR). Similarly, the Australian government has urged caution regarding AI-generated content in official communications.

These global moves signal an increasing awareness of AI-related risks, particularly in handling confidential government information.

Verification and Lack of Official Comment

While the advisory has gained traction on social media, three finance ministry officials have confirmed its authenticity. The note was reportedly circulated internally this week, though Reuters could not immediately verify whether other Indian ministries have issued similar directives.

Representatives from the Finance Ministry, OpenAI (ChatGPT’s parent company), and DeepSeek have not yet responded to media inquiries regarding the advisory.

Sam Altman’s Visit Amid AI Policy Discussions

The timing of the advisory is notable as it coincides with Sam Altman’s visit to India. The OpenAI chief is expected to meet the IT minister, possibly discussing AI policies, regulations, and India’s stance on generative AI technologies.

Altman’s visit comes at a time when India is actively shaping its AI policies, balancing technological advancements with ethical considerations and national security concerns.

OpenAI Faces Legal Challenges in India

OpenAI is currently facing a high-profile legal battle in India related to copyright infringement claims by major Indian media houses. The lawsuit questions whether ChatGPT and other AI models violate intellectual property rights by using news content without authorization.

In its court filings, OpenAI has argued that it does not have servers in India, and hence, Indian courts should not have jurisdiction over the case. However, media companies continue to press for accountability in AI-generated content usage.

This legal dispute further highlights the complex challenges associated with AI adoption, including intellectual property rights, ethical considerations, and data privacy concerns.

Future of AI Policies in India

With AI adoption growing rapidly across sectors, the Indian government is likely to introduce new regulatory frameworks for AI applications. The Finance Ministry’s advisory may be an early step toward a broader policy shift, focusing on data security, ethical AI usage, and governance measures.

As discussions around AI regulations intensify, India’s approach to balancing innovation and security will be crucial in shaping the future of AI governance in the country.