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Finance Ministry advises employees not to use AI tools like ChatGPT over data security concerns: Reports

The advisory warns that using AI chatbots for government-related work could compromise sensitive information. Similar AI restrictions have been implemented in countries like Australia and Italy, which have also cited data security risks as a major concern.

Edited By: Saumya Nigam @snigam04 New Delhi Published : Feb 05, 2025 13:29 IST, Updated : Feb 05, 2025 16:14 IST
Finance Ministry, AI tools, ChatGPT, DeepSeek, data security
Image Source : FILE Finance Ministry bans AI tools like ChatGPT and DeepSeek over data security concerns

The Finance Ministry of India has issued an advisory restricting employees from using AI tools like ChatGPT and DeepSeek for official work. The decision comes amid concerns over confidentiality and data security risks related to government documents, according to multiple media reports. Similar restrictions have been imposed in countries like Australia and Italy, which have raised alarms over the potential misuse of sensitive information.

Reports of the advisory surfaced online on Tuesday, just ahead of OpenAI CEO Sam Altman’s scheduled visit to India on Wednesday, where he is expected to meet with the IT Minister.

"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 (government) data and documents," said the advisory by the Indian Finance Ministry dated January 29 (2025).

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

However, three Finance Ministry officials have reportedly confirmed that the directive was genuine and had been issued internally this week to restrict the artificial intelligence (AI) tool usage for official work.

However, it remains unclear if similar AI restrictions will be applied to other Indian ministries, as Reuters could not independently verify any broader government directives on the matter. The advisory, however, aligns with global concerns about AI-driven data security risks in official and confidential communications.

Meanwhile, OpenAI is already facing legal challenges in India, as several top media houses have accused it of copyright infringement. In court filings, OpenAI has argued that it does not have servers in India and that Indian courts should not have jurisdiction over the case.

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