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Red Flags in AI: Safeguarding India's Data

Red Flags in AI: Safeguarding India's Data

27 Nov, 2025

The rapid proliferation of generative AI (GenAI) platforms in India has sparked a significant debate within the government regarding potential risks to data privacy and inference. As officials consider the implications of using AI for official tasks, critical questions arise about the tracking of user prompts and whether foreign firms might exploit anonymized data from Indian citizens.

Senior bureaucrats, policy advisors, and influential academics are among the top officials whose queries could potentially be mapped to identify their priorities and weaknesses. This raises concerns about whether sensitive insights could be inferred from their behavior and interactions with AI systems. As the government delves deeper into these discussions, they are particularly wary of the implications of using foreign AI services.

In response to these concerns, at least one major government department, the Finance Ministry, has taken decisive action by issuing directives prohibiting the use of AI platforms like ChatGPT and DeepSeek on official devices. The ministry's memo emphasized the risks these tools pose to the confidentiality of government data and documents, highlighting the need for protective measures in the digital age.

The Indian government is also actively funding the development of indigenous large language models (LLMs) through its Rs 10,370-crore India AI Mission. With at least twelve LLMs in development, government officials are hopeful that these locally made solutions can provide safer alternatives to foreign platforms. This initiative aligns with a broader push for swadeshi digital tools, especially in light of strained trade relationships with countries like the United States.

Prime Minister Narendra Modi has underscored the need for domestic digital platforms in various sectors, not just in payments and identity management. High-profile officials, including the IT Minister and Home Minister, have demonstrated their commitment to this cause by transitioning to Indian software solutions. The growing reliance on foreign platforms has raised red flags, prompting calls for self-sufficiency in the digital landscape.

As generative AI companies continue to offer free access to Indian users, the government remains cautious. The recent developments indicate a desire to leverage the potential of AI while ensuring that citizen data remains protected. The discussions around AI governance and the creation of risk assessment frameworks signify an important step toward addressing these challenges, ensuring that India can advance in technology without compromising on security.

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