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AI Risks in Government: Protecting Data Privacy

AI Risks in Government: Protecting Data Privacy

05 Dec, 2025

The rapid rise of generative AI (GenAI) platforms in India has sparked significant concerns about data privacy and inference risks among government officials. As these platforms become increasingly popular, questions arise about the implications of using AI for sensitive government work. What happens when a government officer inputs an internal note into an AI chatbot for a quick summary? Or when a police department seeks to optimize city-wide CCTV coverage using an AI assistant? These scenarios underscore the need for careful scrutiny of AI usage in official contexts.

Government discussions have focused on two primary concerns. The first is whether queries from senior officials—such as bureaucrats and policy advisors—can be mapped to reveal priorities or weaknesses. The second is the risk that anonymized user data might be exploited by foreign companies. Senior officials acknowledge that while foreign large language models (LLMs) are currently the most popular, there are significant risks involved in using these services, particularly concerning the tracking of user behavior and the inferences that can be drawn from it.

In response to these concerns, the Finance Ministry has taken proactive measures by directing employees to avoid using AI tools like ChatGPT and DeepSeek on official computers. The memo emphasized that these AI applications pose risks to the confidentiality of government data, leading to a broader conversation about how to protect official systems from foreign AI services.

As the Indian government invests in the development of indigenous LLMs under the India AI Mission, the emphasis on swadeshi digital tools has intensified. This push for local alternatives reflects a broader strategy to reduce dependence on foreign platforms, especially amid strained international relations. The Prime Minister has highlighted the need for domestic digital platforms beyond just payments and identity verification, signaling a shift in focus for the digital ecosystem.

Interestingly, the debate over AI tools isn't new. The Indian government has grappled with the implications of foreign apps before, notably banning TikTok and other Chinese applications due to national security concerns. Moreover, a recent report from a subcommittee under the IT ministry suggested the creation of an India-specific risk assessment framework for AI, emphasizing the need for a collaborative approach among various ministries to develop effective governance frameworks.

In conclusion, the intersection of AI technology and government work presents both opportunities and challenges. As the nation moves forward, balancing innovation with the protection of sensitive data will be crucial in shaping India's digital future.

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