Policy Watch
Government Bans AI Tools Like ChatGPT in Offices Over Data Confidentiality Concerns

The Finance Ministry has issued a directive instructing its employees to strictly avoid using AI tools such as ChatGPT and DeepSeek on office computers and devices due to concerns over the confidentiality of government data and documents. The directive, issued by the Department of Expenditure on January 29, warns that AI applications pose potential security risks when used on official systems.
The advisory emphasizes that AI-based tools can compromise sensitive government information and, therefore, should not be used by employees in office environments. Employees are urged to strictly adhere to this policy, ensuring the protection of confidential documents from unauthorized access or leaks.
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This move aligns with global concerns over AI applications handling sensitive government data. Several countries have already restricted AI usage in government offices, particularly focusing on privacy risks associated with tools like DeepSeek, a Chinese foundational AI model. DeepSeek has recently gained significant traction for its ability to match OpenAI’s models at a fraction of the cost, prompting discussions on AI security and accessibility.
Meanwhile, Sam Altman, CEO of OpenAI, revealed that India is now the second-largest market for ChatGPT, with its user base tripling in the past year. During his India visit, Altman is set to meet government officials, startups, and investors to discuss AI’s growing role. Altman’s visit coincides with the rising popularity of DeepSeek, which has demonstrated the potential for building high-performing AI models at a lower cost. Experts note that this development could reshape the AI landscape, making sophisticated AI technologies more accessible while raising new concerns about data privacy and security.