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Government Concerns Over Generative AI in India

Government Concerns Over Generative AI in India

06 Feb, 2026

The rapid rise of generative AI (GenAI) tools in India has stirred significant concerns among government officials regarding data privacy and inference risks. With the increasing adoption of foreign AI platforms for official tasks, critical questions arise about the implications associated with using these services, especially concerning sensitive governmental data.

Senior officials are particularly worried about whether these AI systems can analyze user prompts to identify priorities and weaknesses among top bureaucrats and policy advisors. The discussion also encompasses whether anonymized data from millions of Indian users could be leveraged by global companies, raising alarms about potential exploitation.

In response to these concerns, some government departments have already taken steps to limit the usage of generative AI platforms. For instance, the Finance Ministry issued directives prohibiting the use of tools like ChatGPT and DeepSeek on official devices, emphasizing the risks to the confidentiality of government documents.

Generative AI has the capability to draw deeper inferences about users based on their prompts. Every input reveals intent, tone, preferences, and context, which can be exploited by AI companies that often partner with telecom operators to provide free subscriptions linked to users’ phone numbers.

This situation unfolds as India invests in developing indigenous large language models (LLMs) under its Rs 10,370-crore India AI Mission. The government is keen on fostering homegrown digital solutions, aligning with a broader political push to promote swadeshi digital tools over foreign platforms amid strained trade relations with the United States.

During a recent meeting, the Prime Minister emphasized the need for domestic digital platforms in communication and knowledge sharing, not just in payments and identity sectors. This push is evident as IT Minister Ashwini Vaishnaw transitions to using Indian software like Zoho, and Home Minister Amit Shah has announced a move to Zoho Mail for official communication.

Moreover, several generative AI companies have recently launched free access to their services for Indian users, indicating a growing trend. However, the government remains cautious as it seeks to balance innovation with the need to protect sensitive information.

In conclusion, the ongoing debates within the Indian government regarding the use of generative AI tools indicate a crucial moment in the intersection of technology and governance. As officials weigh the risks and benefits, the path forward for AI in India will significantly impact the future of digital governance.

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