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India Bans AI Tools for Government Use Amid Data Security Concerns

India's finance ministry bans AI tools like ChatGPT & DeepSeek over data security risks as OpenAI CEO Sam Altman visits for AI collaboration talks.
2025-02-05
India Bans AI Tools for Government Use Amid Data Security Concerns

India’s finance ministry has issued an advisory instructing its employees to avoid using artificial intelligence (AI) tools such as ChatGPT and DeepSeek for official purposes, citing concerns about data confidentiality.

The advisory, dated January 29, highlights the risks posed by AI apps on government devices and systems.

"It has been determined that AI tools and AI apps (such as ChatGPT, DeepSeek, etc.) in office computers and devices pose risks for the confidentiality of government data and documents," the advisory stated.

Concerns Over AI Tools and Confidentiality

This development follows similar restrictions in other countries, including Australia and Italy, which have voiced concerns over data security related to AI tools. The finance ministry has not commented publicly, but three officials confirmed the internal note’s authenticity.

It remains unclear whether other ministries in India have adopted similar measures.

OpenAI CEO Sam Altman Meets India’s IT Minister

The advisory surfaced just before OpenAI CEO Sam Altman’s scheduled visit to India, where he met with IT Minister Ashwini Vaishnaw to discuss the country’s AI ambitions.

Vaishnaw described the discussion as "super cool" on X (formerly Twitter), highlighting India’s strategy to build an entire AI ecosystem, including GPUs, models, and applications.

Altman, on his first visit to India since 2023, expressed a willingness to collaborate on these AI initiatives.

AI Legal Challenges in India

Altman’s visit comes as OpenAI faces a high-profile copyright infringement case with major Indian media houses. OpenAI has argued that Indian courts lack jurisdiction over the matter since its servers are not located in the country.

DeepSeek and India’s AI Vision

Vaishnaw praised DeepSeek, a Chinese AI startup, for its cost-effective AI solutions, comparing its frugal approach to India’s successful moon mission. He emphasized the government's desire to develop an affordable, localized AI model.

"Our country sent a mission to the moon at a fraction of the cost that many other countries did. Why can’t we do an AI model at a fraction of the cost as well?" Vaishnaw remarked in a video shared on X.

A Growing AI Landscape in India

As India becomes a crucial market for AI development, the government's stance on AI tools highlights the balance between technological innovation and data security. With Altman expressing readiness for collaboration, India may soon see significant developments in its AI ecosystem.