India to develop its own AI model to compete globally: AI tools pose risk to confidential government data, Finance Ministry advises employees

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Finance Ministry advises employees AI risk

New Delhi, Feb 5

The Finance Ministry has issued an advisory asking its employees not to use AI tools like ChatGPT and DeepSeek for official work, citing concerns over data security and confidentiality.

The advisory warns that using AI apps on office computers and devices could pose risks to sensitive government documents.

Government’s AI Strategy and Privacy Concerns

The IT Ministry has previously stated that privacy concerns linked to AI tools like DeepSeek could be addressed by hosting open-source AI models on Indian servers.

Union Minister for Railways and IT, Ashwini Vaishnaw, recently announced that India is working on developing its own AI model, which will be safe, ethical, and reliable. This initiative aims to strengthen India’s position as a global AI leader.

DeepSeek Faces Scrutiny

DeepSeek, a Chinese AI tool, is facing increasing scrutiny worldwide over data privacy concerns. Dutch authorities have launched an investigation into its privacy policies, raising concerns about how it handles user data.

Some reports suggest that OpenAI and Microsoft are also examining whether DeepSeek copied their APIs.

India’s Growing Role in AI

Speaking at an event in New Delhi, OpenAI CEO Sam Altman emphasized that India is a crucial market for AI and OpenAI’s second largest market globally.

He acknowledged that AI models are still expensive to develop but expressed confidence that India could become a leader in the AI industry.

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