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Finance Ministry Bans AI Tools Like ChatGPT and DeepSeek Over Security Concerns

The Indian finance ministry has banned AI tools like ChatGPT over security concerns, coinciding with OpenAI CEO Sam Altman’s visit to India.

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Finance Ministry Bans AI Tools Like ChatGPT and DeepSeek Over Security Concerns

The finance ministry has banned the use of AI tools, including popular applications like ChatGPT and DeepSeek, on government devices. According to an internal advisory issued on January 29, 2025, the ban was due to security concerns over the risks these AI applications pose to sensitive government data.

According to a Reuters report, three officials from the finance ministry confirmed the legitimacy of the advisory. The advisory issued by the ministry warns that AI tools within office systems risk compromising the confidentiality of government data and documents. The advisory says, “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 move comes amidst growing concerns and scrutiny regarding the use of AI tools worldwide. Countries like Australia and Italy have already imposed similar restrictions on DeepSeek, citing data security risks.

OpenAI CEO Sam Altman’s India Visit

Just days before OpenAI CEO Sam Altman is to visit India on February 5, 2025, to meet with IT Minister Ashwini Vaishnaw and Prime Minister Narendra Modi, the finance ministry has offered its advisory on granting this relief. This visit comes after India revealed the IndiaAI Mission, which the country allocated Rs 10,371 crore for AI development in the next five years.

Altman is visiting India as part of a wider international tour that will take him to Japan, South Korea, the UAE, Germany, and France. This is Altman’s second visit to India, following his first visit in June 2023, when he met with PM Modi to discuss AI regulation. Altman will also meet with leading venture capital firms, such as Peak XV Partners and Accel, during his stay in Delhi.

Facing legal scrutiny, OpenAI in India

OpenAI has struggled with increasing legal battles in the country. Major media houses have recently involved it in a high-profile copyright case. In court, the company has also argued that its servers are outside of India and, hence, Indian courts have no jurisdiction over the case.

The moves by the Indian government follow global rising scrutiny over the AI tools, and increasing regulatory and security concerns.