The Ministry of Finance has officially prohibited the use of AI tools such as ChatGPT and DeepSeek on office devices, citing concerns over the potential leakage of confidential government data and documents. The directive, issued with the approval of Finance Secretary Tuhin Kanta Pandey, applies to all AI-powered applications used within the ministry’s network.

A formal letter, titled “Avoiding the Use of AI Tools/Apps in Office Devices,” has been circulated to all 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 letter explicitly warns that AI tools pose a risk to the confidentiality of government data and advises that their use be strictly avoided on official devices. Employees across all departments have been instructed to comply with the directive.

The order was implemented on January 29, 2025, just ahead of the Union Budget announcement. However, sources confirm that the ban remains in effect beyond the budget period, indicating a long-term approach to data security concerns.

This decision comes amid growing global scrutiny over the security implications of AI applications, particularly those developed by Chinese firms. DeepSeek, which recently launched its R1 chatbot, has been under increasing regulatory scrutiny. The AI startup claims its technology rivals the capabilities of leading AI models in the U.S. but operates at a fraction of the investment. Australia and South Korea have also restricted access to DeepSeek on government devices due to data security risks, further intensifying concerns around AI-driven tools in official environments.

Despite repeated inquiries, the Ministry of Finance has not provided an official response regarding the ban. However, industry experts suggest that the restriction reflects broader apprehensions over AI’s role in handling sensitive government data. The move aligns with similar actions taken by other governments to mitigate security threats posed by AI applications with uncertain data governance policies.

As AI continues to evolve and integrate into various sectors, the debate over balancing technological advancements with national security interests is likely to persist. The Ministry of Finance’s decision signals a cautious approach to AI adoption within government institutions, prioritizing data security over convenience and innovation.