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Technology & AI Economic Times Tech • Oct 08, 2026

IT Secretary S Krishnan Urges Judicious Mix of Open and Proprietary AI Models to Mitigate Data Leak Risks

💡 Key Takeaways

•IT Secretary S Krishnan called for a judicious mix of open and proprietary AI models.
•Proprietary models present severe risks of unauthorized cross-border data transfer and data harvesting.
•Enterprises must adopt hybrid architectures to safeguard corporate intellectual property and data sovereignty.

NEW DELHI [NCRBuzz Wire] — **Union Ministry of Electronics and Information Technology (MeitY) Secretary S Krishnan underscored the critical imperative for enterprises and public sector entities to adopt a hybrid architectural approach when deploying large language models.** **Addressing enterprise risk vectors, Krishnan explicitly highlighted that leveraging closed, proprietary AI models presents latent threats including unauthorized cross-border data transfer and model training on proprietary corporate intellectual property without explicit consent.** **This architectural dilemma requires system architects to carefully calibrate the trade-offs between zero-shot capability, inference latency, hardware footprint, and cybersecurity compliance before committing capital to foundational LLMs.**

### Enterprise AI Deployment Metrics

|---|---|---|---|

**To safeguard national data ecosystems, policymakers are actively reviewing regulatory frameworks that govern model weight transparency and cross-border telemetry.** **Developers are increasingly utilizing frameworks like Llama-3, Mistral, and fine-tuned Indic LLMs to maintain strict perimeter security while retaining state-of-the-art benchmark accuracy.**

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🏛️ Background Context

As global generative AI adoption accelerates across banking, healthcare, and public administration in India, balancing cloud-based proprietary models with open-source alternatives has become a paramount national security and data privacy discussion, aligning with MeitY's push for indigenous compute and sovereign AI frameworks.

💡 Citizen & Commuter Quick Explainer (FAQ)

Q1: What are the primary risks associated with proprietary AI models according to MeitY?

Proprietary models expose organizations to unauthorized cross-border data transfers and the risk of vendors training models using proprietary corporate data.

Q2: Why is a hybrid AI model strategy recommended for enterprises?

A hybrid strategy combines the customization and data sovereignty of open-source weights with the advanced reasoning capabilities of closed-source APIs.

Q3: How does this policy direction impact software developers in India?

Developers are encouraged to build resilient, localized AI pipelines using fine-tuned open-source LLMs while maintaining strict cybersecurity compliance.

Verified Wires: Economic Times Tech Original Wire Dispatch ↗

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