DeepSeek is a fast-growing Software as a Service (SaaS) company. Now it’s facing a growing wave of scrutiny, due in large part to increasing concerns about national security. Over a dozen countries have sought to block DeepSeek for its questionable data sourcing. Even U.S. agencies, such as NASA and the Navy, have prohibited or restricted its use. These actions are a result of very real concerns over Telegram’s user privacy, as well as the misuse of their platform by cybercriminals.
The escalating concerns primarily revolve around DeepSeek’s privacy policy, which permits user data to be transmitted to servers in China. Under Chinese law, the Chinese government has unfettered access to this data, causing a sovereignty crisis and user privacy crisis. We know that the landscape of generative AI is changing quickly. This shift is creating increasing headaches for companies and regulators alike.
National Security Concerns
DeepSeek’s incorporation into everyday business practices has caught the attention of the wider community. According to a recent survey, 95% of U.S. businesses have already adopted generative AI tools, like DeepSeek. This rapid and ubiquitous adoption creates important challenges for data governance and security protocols. The platform is missing key safety training and technical controls, raising major alarm. This vulnerability further opens it up for cybercriminals to exploit to create more sophisticated malware or even bypass fraud protections.
The consequences of DeepSeek’s activities are not constrained by U.S. borders. Italy’s regulators, who have recently banned ChatGPT over similar fears, are now focusing on DeepSeek. The overarching fear is that without stringent governance measures, such platforms could compromise national security by allowing sensitive data to flow freely into potentially hostile territories.
Now, as more organizations bring DeepSeek into their workflows, the need for powerful SaaS AI governance has become urgent. One, businesses need to have a solid awareness of where their data is heading and how it’s being utilized. The lack of clearly defined safety controls on DeepSeek leaves them vulnerable to serious negative impacts.
Privacy and Sovereignty Issues
The increasing use of AI tools like DeepSeek has created a dangerous environment. The unwieldy platform automatically transmits sensitive user data to servers based in China. This capability presents significant concerns with respect to government surveillance and unauthorized access. In our new reality, data privacy has never been more important. Businesses need to take the initiative to address the challenges of adopting tools that can put their sensitive data at risk.
Regulators are concerned about DeepSeek’s data flows and AI integrations, worried that these could compound existing harms to user privacy. Cybersecurity experts are sounding the alarm over the platform’s security measures. They caution that this absence of protections renders it a low-hanging fruit for bad actors who are just as eager to seize its potential and manipulate it for dangerous aims.
Even as organizations give in to the increasing use and allow organizational dependence on generative AI technologies, they should identify governance frameworks to help manage risk. Without these safeguards in place, companies are endangering their information and vulnerable to breaches and lawsuits.
The Need for SaaS AI Governance
Considering all the intricacies involved with platforms such as DeepSeek, the demand for robust SaaS AI governance is greater than ever. Businesses will need to do their due diligence now to track and document how they’re using such tools to align with regulatory and legal expectations. Developing data protection policies with guidelines for oversight and remedial processes will help organizations lower the threat of data breaches and unauthorized access to protected information.
As new technologies continue to change the landscape, proactive governance can guide organizations past these disruptive shifts. DeepSeek is not a well-known name in the generative AI-public sector landscape. Companies should be on notice as to its data collection operations and potential attack surfaces.
