Are AI tools like GPT and DeepSeek going to be banned in India—myth or truth? How will this impact stocks?

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India is the second biggest market for open AI. The user base that is reliant on AI tools like ChatGPT or DeepSeek has trebled in the last few years. Amid such growth, there is a myth revolving around how the government may now be planning to ban the use of these AI Tools. 

What is the news about?

Due to concerns about the confidentiality of government documents and data, the Finance Ministry has instructed its staff to “strictly” refrain from using artificial intelligence (AI) chatbots, such as ChatGPT and DeepSeek, on office computers and devices. It has been discovered that the directive was issued on January 29 by the Department of Expenditure of the Finance Ministry.

According to what is known, the instruction stated that “AI tools and AI apps (like ChatGPT, DeepSeek, etc.) in office computers and devices pose risks for the confidentiality of Govt data and documents.”

Therefore, it is strongly urged that AI tools or apps be avoided on office equipment. It is said that the directive stated, “This may be brought to the notice of all employees.” 

Since government officials are done for, are we the common users next to be banned from using AI tools?

More developments with AI Tools

More developments with AI Tools

Due to privacy and data security concerns, a few other nations have already taken steps to safeguard their official systems from AI tools, especially the Chinese fundamental model DeepSeek.

India is currently OpenAI’s second-largest market, and the firm’s user base there has tripled in the past year, according to Sam Altman, CEO of OpenAI, the company that created the well-known AI chatbot ChatGPT, who made this announcement on Wednesday. Altman is visiting India to meet with venture capital funds, start-ups, and high-ranking government officials.

Altman’s visit takes place at the same time that DeepSeek, a groundbreaking model developed by a Chinese AI lab at a fraction of the price of OpenAI and reportedly comparable to the company’s models in many ways, is gaining enormous popularity. In contrast to the enormous expenditures required to create OpenAI’s models, DeepSeek’s model has demonstrated to the world that state-of-the-art foundational models might be constructed at lower prices.

Has DeepSeek triggered this scrutiny?

Has DeepSeek triggered this scrutiny?

Regulators worldwide are examining DeepSeek after its chatbot app and AI models went viral a few days ago. The use of the Chinese startup’s AI technology by the government is prohibited in a few nations.

The DeepSeek app’s data harvesting methods have drawn criticism from privacy watchdogs in nations like Ireland, France, Belgium, and the Netherlands.

According to a Bloomberg story, “hundreds of companies” have asked their corporate cybersecurity providers, including Netskope and Armis, to ban access to DeepSeek, and numerous federal agencies in the US have advised their staff not to use the app. 

Read more: how DeepSeek changes the narrative around AI.

DeepSeek’s potential to disclose user data with the Chinese government, whose regulations require businesses to provide data with local intelligence services upon request, is arguably the largest worry.

However, since running some of DeepSeek’s AI models locally supposedly prevents the company from obtaining sensitive user data, these data privacy issues might only apply to the application layer of the AI.

Consequently, the Indian government intends to use local servers to host DeepSeek’s AI model. According to a remark from Union Minister of Electronics and Information Technology Ashwini Vaishnaw, “open source models on Indian servers can address data privacy issues regarding DeepSeek.”

Countries that have banned AI

Countries that have banned AI

Italy

Italy was among the first nations to outlaw DeepSeek’s AI last month, and the AI chatbot software, which was based on the company’s core AI models V3 and R1, has apparently vanished from Italian app stores. This happened a few days after the nation’s privacy watchdog requested details on the Chinese AI startup’s user data handling practices. DeepSeek was given twenty days to respond to the notification. According to reports, a complaint submitted by the consumer coalition group Euroconsumers prompted the Italian Data Protection Agency (DPA) to take action.

Taiwan

The Ministry of Digital Affairs in Taiwan has prohibited government organisations from utilising DeepSeek’s artificial intelligence (AI) technology, stating that the company “endangers national information security.” TechCrunch claims that deploying DeepSeek’s technology puts vital infrastructure facilities and public sector employees at risk of information leakage and cross-border transfer. According to reports, the prohibition also applies to Taiwan’s state-owned businesses and public schools.

Australia

Due to security concerns, government employees in Australia are not allowed to install or use the DeepSeek AI app. The Secretary of the Department of Home Affairs has mandated that all government agencies “prevent the use or installation of DeepSeek products, applications, and web services and where found remove all existing instances of DeepSeek products, applications, and web services from all Australian Government systems and devices.” According to Reuters, private citizens are exempt from the ban.

South Korea

Citing security concerns, a number of South Korean government offices and departments have restricted access to DeepSeek’s AI technology. According to Reuters, these include the nation’s ministries of industry, defence, and foreign policy as well as the state-run Hydro and Nuclear Power.

Union Finance Ministry

Citing the dangers to the privacy of sensitive government data, the Union Ministry of Finance has advised employees not to use AI tools like ChatGPT and DeepSeek. According to Reuters, an internal ministry recommendation sent on January 29 stated, “It has been determined that AI tools and AI apps (such as ChatGPT, DeepSeek, etc.) in the office computers and devices pose risks for the confidentiality of (government) data and documents.”

US Congress

The use of DeepSeek technology has been discouraged for US Congress members. “DeepSeek is already being used by threat actors to infect devices and distribute malicious software To reduce these risks, the House has implemented security measures to limit DeepSeek’s functionality on all House-issued devices,” the US House of Representatives’ chief administrative officer stated in a notice. It has also been forbidden for congressional employees to install DeepSeek applications on their official devices.

US Navy

According to a CNBC story, the US Navy has prohibited its members from using DeepSeek’s apps or AI technology “in any capacity” because of “potential security and ethical concerns associated with the origins and usage.” In an internal communication, the US Navy stated that members must not download, install, or use DeepSeek AI for any personal or work-related purposes.

Pentagon

According to a Bloomberg article, since January, access to DeepSeek technologies has been restricted in the Pentagon, home of the US Department of Defence (DoD). Defence authorities apparently voiced worries about Pentagon employees using DeepSeek’s program without permission, which prompted the limits. However, using an approved platform called Ask Sage, which does not keep data on servers located in China, defence department employees can access DeepSeek’s AI.

Bottom Line

So, AI tools like DeepSeek and ChatGPT are banned by the Finance Ministry of India. However, there is no such ban on its use by common users. However, it raises concerns about the information sharing and authenticity of these tools. Are we relying too much on AI? Is it okay to share everything with an automated chatbot online, that is a bit advanced? These questions still remain in the mist and are yet to be uncovered. 

Stay tuned to InvestinHub to know more such news. 

FAQs

Currently, there is no such news or announcement of ChatGPT being banned in India. The tool is banned from use only by government officials as sources say. 

DeepSeek is available for use by common users. It is banned by the Finance Ministry, as per the recent advisory that was launched. 

DeepSeek is a new open AI platform that works in similar modules as ChatGPT, but is way faster more responsive and has better functionalities. It is developed in China. Read More about DeepSeek.

AI is not harmful unless you use it for false measures. AI is a helpful tool and can assist you in many ways. However, sharing too much information with AI tools can lead to some unwanted circumstances. 

Currently, there is no use of CHatGPT turning out to be bad or harmful software. However, users should not over-rely on this AI tool and should never share sensitive information as all of it is recorded on the server.