India’s Ministry of Finance has officially prohibited using AI (Artificial Intelligence) tools such as ChatGPT and DeepSeek on office devices, citing risks of confidential government data leaks. This was stated in a report by People Matters. Finance Secretary Tuhin Kanta Pandey approved the directive, which applies to all AI-powered applications within the ministry’s network.  

A formal letter titled “Avoiding the Use of AI Tools/Apps in Office Devices” has been circulated across all departments under the ministry, including the Department of Economic Affairs, Department of Expenditure, Department of Public Enterprises, Department of Investment and Public Asset Management (DIPAM), and the Department of Financial Services. The letter explicitly warns that AI tools threaten government data security and mandates employees to refrain from using them on official devices.  

The order was enforced on January 29, 2025, just before the Union Budget announcement. However, sources confirm the ban extends beyond the budget period, indicating a long-term data security measure.  

The decision comes amid growing global scrutiny of AI applications, particularly those developed by Chinese firms. DeepSeek, which recently launched its R1 chatbot, has been facing increasing regulatory pressure. While the company claims its technology rivals leading US AI models at a fraction of the cost, concerns over its data governance persist. Countries like Australia and South Korea have also restricted access to DeepSeek on government devices owing to similar security risks.  

Despite repeated inquiries, the Ministry of Finance has not issued an official response regarding the ban. However, industry experts believe the restriction underscores broader concerns over AI’s role in handling sensitive government data. The move aligns with actions taken by other governments to mitigate potential security threats posed by AI tools with uncertain data governance policies.  

As AI continues to evolve and integrate into critical sectors, the debate over balancing technological progress with national security concerns is expected to intensify. The Ministry of Finance’s decision reflects a cautious stance on AI adoption in government institutions, prioritising data security over convenience and innovation.