News: ChatGPT, DeepSeek banned as Finance Ministry tightens AI regulations
The Ministry of Finance has taken a significant step by prohibiting the use of AI tools such as ChatGPT and DeepSeek on office devices. This decision stems from concerns regarding the potential leakage of confidential government data and documents.
Implementation of the Ban
The directive, authorized by Finance Secretary Tuhin Kanta Pandey, is applicable to all AI-powered applications utilized within the ministry’s network. A formal letter titled “Avoiding the Use of AI Tools/Apps in Office Devices” has been circulated to various departments under the ministry, including the Department of Economic Affairs, the Department of Expenditure, the Department of Public Enterprises, the Department of Investment and Public Asset Management (DIPAM), and the Department of Financial Services.
The Ministry explicitly warned about the risks AI tools pose to the confidentiality of government data and strongly advised against their usage on official devices. Employees in all departments have been instructed to adhere to this directive.
Recent Developments
The ban was put into effect on January 29, 2025, just before the announcement of the Union Budget. Despite being initiated around the budget period, sources confirm that the ban will remain in place beyond this timeframe, indicating a long-term approach to addressing data security concerns.
This decision by the Ministry of Finance comes at a time of increased global scrutiny over the security implications of AI applications, particularly those originating from Chinese companies. DeepSeek, known for its R1 chatbot, has been facing heightened regulatory scrutiny. The startup claims its technology is on par with leading U.S. AI models but at a lower cost. Australia and South Korea have also restricted DeepSeek on government devices due to data security risks, further accentuating concerns surrounding AI-driven tools in official settings.
Industry Response and Future Outlook
The ban was put into effect on January 29, 2025, just before the announcement of the Union Budget. Despite being initiated around the budget period, sources confirm that the ban will remain in place beyond this timeframe, indicating a long-term approach to addressing data security concerns.
