DeepSeek: The Latest AI App from China and the Risks You Need to Consider

A new AI-powered application, DeepSeek, has recently hit the market, making waves in the tech community. While many are excited about the capabilities it offers, there are some serious considerations that businesses and individuals need to keep in mind before jumping on board. With concerns about data privacy, security risks, and the broader implications of foreign-owned technology, we need to take a hard look at what this means for corporate and personal security.

Who Owns DeepSeek and How Is Your Data Used?

DeepSeek is Chinese-owned, which immediately raises red flags about how user data is collected, stored, and potentially shared. While the specific terms of service may seem standard, China has a long-standing legal framework that requires companies to share data with the government upon request. This means that any data processed through the app—whether it’s simple prompts or sensitive business-related queries—could potentially be stored, analyzed, or even handed over to Chinese authorities.

Many Chinese applications in the past have been criticized for their opaque privacy policies, where the extent of data collection is often hidden under vague legal language. DeepSeek could follow the same playbook, harvesting user data for more than just AI training, including location tracking, behavioral analytics, and possible access to device information. The bottom line: If you’re using DeepSeek, your data may not be as private as you think.

Security Risks: AI on Devices

One of the biggest security concerns with AI apps like DeepSeek is how they interact with your devices. Whether installed on a personal phone, a company laptop, or even accessed via a web browser, there are multiple risks to consider:

• Data Retention and Transmission: Where is your data going, how long is it stored, and who has access to it? Many AI-powered platforms retain inputs for future training, which could mean sensitive corporate information is sitting on a foreign server indefinitely.
• Potential Backdoors and Exploits: Foreign-owned software can include hidden vulnerabilities or intentional backdoors that allow for unauthorized access to devices, networks, and sensitive information.
• Regulatory and Compliance Issues: Businesses operating in regulated industries (finance, healthcare, defense, etc.) could find themselves in violation of data protection laws by allowing staff to use an application that transfers data to foreign-controlled servers.

With AI applications rapidly evolving, the risk is not just about what they do today, but what they could do tomorrow. Companies must take a proactive approach in determining which tools are safe for corporate environments.

China’s History of Reverse Engineering and Market Undercutting

China has a well-documented history of reverse engineering technology and using cost-effective production methods to undercut U.S. innovation. This applies not only to physical products but also software, AI models, and cybersecurity tools.

Historically, we’ve seen Chinese companies replicate Western technology, tweak it, and then flood the market with cheaper alternatives, effectively pushing out competitors who invested time and money into research and development. The rise of DeepSeek could be a sign that China is making another play to dominate the AI space, leveraging its massive dataset collection and state-backed funding to leapfrog U.S. tech companies.

For businesses, the risk isn’t just about competition—it’s about data security and control. If employees are inputting sensitive queries into a foreign AI system, they could be unknowingly contributing to a database that fuels the next generation of Chinese AI, potentially at the expense of their own company’s intellectual property.

What Businesses Should Do Now

With the constant introduction of new technologies, tech-savvy employees will always be tempted to test out the latest tools. However, companies need to be proactive in setting clear guidelines to protect their data and infrastructure.

Steps to Take Immediately:

1. Review Corporate Security Policies – Ensure policies explicitly prohibit the use of unauthorized AI tools for work-related queries.
2. Block or Monitor High-Risk Applications – IT departments should restrict access to applications like DeepSeek on corporate networks.
3. Educate Employees – Many data breaches happen due to lack of awareness. Employees need to understand the risks associated with foreign-owned AI.
4. Invest in Secure AI Alternatives – U.S.-based AI solutions that adhere to strict data privacy laws can provide similar functionality without the same risks.
5. Monitor Regulatory Developments – Keep track of government advisories and restrictions on foreign AI applications.

Final Thoughts: Tech Moves Fast, But Security Comes First

New AI tools are emerging daily, and it’s easy to get caught up in the excitement of the next big thing. But excitement doesn’t mean security. Businesses must be diligent about protecting proprietary data and ensuring that employees follow best practices when engaging with AI-driven applications.

At StarSevenSix, we believe in innovation with responsibility—that means embracing new technology while ensuring data security, compliance, and corporate integrity. Before you install or test a new AI tool, ask yourself: Is this safe? Is this compliant? Could this put our company at risk?

Because when it comes to cybersecurity, it only takes one mistake to compromise everything.