India bans ChatGPT and DeepSeek for finance ministry staff

India’s finance ministry has issued an internal advisory prohibiting employees from using AI tools like ChatGPT and DeepSeek for official work, citing data security concerns.

Key policy details: The January 29 directive specifically addresses the use of AI applications on office computers and devices, emphasizing the potential risks to government data confidentiality.

• The advisory explicitly names ChatGPT and DeepSeek as examples of AI tools that pose potential security risks
• Three finance ministry officials have confirmed the authenticity of the internal note
• It remains unclear whether similar directives have been issued to other Indian government ministries

International context: India’s move aligns with a growing trend of government restrictions on AI tool usage in official capacities.

• Australia and Italy have implemented similar restrictions on AI tools like DeepSeek
• These restrictions reflect broader global concerns about data security in government operations
• The timing coincides with OpenAI CEO Sam Altman’s scheduled visit to India and planned meeting with the IT minister

OpenAI’s challenges in India: The company faces additional complexities in its operations within the country.

• OpenAI is currently involved in a copyright infringement dispute with major Indian media organizations
• The company has argued in court filings that Indian courts lack jurisdiction as it does not maintain servers within the country
• Representatives from OpenAI, as well as DeepSeek and India’s finance ministry, have not yet responded to requests for comment

Strategic implications: This policy decision signals India’s cautious approach to AI integration in government operations, highlighting the delicate balance between technological advancement and data security concerns.

• The directive underscores the growing awareness of potential vulnerabilities in AI-powered tools when handling sensitive government information
• This move could influence other government departments and organizations to implement similar restrictions
• The policy may impact the broader adoption of AI tools in India’s public sector

Looking ahead: The intersection of AI regulation and government operations in India appears to be entering a critical phase, with this directive potentially setting precedents for how other government bodies and organizations approach AI tool usage in sensitive environments.