Finance Ministry bans use of AI tools like ChatGPT, DeepSeek over data security concerns

The finance ministry has directed its officers not to download or use AI tools and apps such as ChatGPT and DeepSeek in office computers and devices, saying they pose confidentiality risks to data and documents.

In a communication last month to all its departments, the ministry said AI tools/AI apps in office devices may be strictly avoided.

"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," Department of Expenditure under the ministry said in a note on Jan 29.

The move comes at a time when countries like Australia and Italy have shielded their official systems from Chinese DeepSeek over privacy and data safety concerns.

Currently, Sam Altman, CEO of OpenAI, which has developed artificial intelligence chatbot ChatGPT is on a whirlwind tour to India. He is meeting top government officials, industry captains and participated in a fireside chat on Feb 5 morning.

DeepSeek's latest AI offering has drawn global attention for its low-cost model — at just USD 6 million against global average of billions of dollars. Further, DeepSeek's R1 used a fraction of compute power as compared to established AI models like ChatGPT.

DeepSeek overtook ChatGPT as the top-ranked free app on Apple's Appstore, as the US tech industry — that has long-justified injecting billions of dollars into AI investments — watched in sheer disbelief last week.

(PTI)