Risk Managing The DeepSeek Disruption and Commoditization of AI
Never has an industry been so starkly split between whether to use a technology or not. But wait… the same thing happened in 2023 with ChatGPT.
Introduction to DeepSeek
Some days after the announcement of Trump’s USD500 billion Stargate project, the Internet was abuzz with how a Chinese lab’s AI model, DeepSeek-R1, was remarkably low cost compared to Open AI’s ChatGPT. DeepSeek, a Hangzhou-based AI company founded in 2023, began gaining attention after the release of its R1 model on January 20, 2024. However, it was the launch of its AI assistant, R1, on January 10, 2025, that truly caught the world's attention.
Geopolitical Considerations
DeepSeek, based in China, challenges US technological dominance in AI. Countries like Italy and Australia have banned it due to concerns over data protection measures. As debates rage on, there are divided opinions on the use of DeepSeek, mirroring the discussions around ChatGPT in the past.
Risk Assessment and Geopolitical Impact
Former Government CISO Chai Chin Loon highlighted that the risks associated with large language models (LLMs) remain a concern. He emphasized the importance of conducting thorough risk assessments to evaluate the impact and potential vulnerabilities associated with adopting such technologies.
Open Source and Transparency
DeepSeek's decision to be open source and transparent about its research has been commendable. This move allows for greater visibility and auditing of the source code, enabling organizations to assess and utilize the technology effectively.
Technological Advancements and Global Impact
The emergence of DeepSeek has reignited debates around US restrictions on China's AI advancements. This disruptive technology not only challenges existing business models but also showcases the potential for innovation independent of advanced US technology.
Security Concerns
Despite its cost-efficiency and innovation, DeepSeek has demonstrated significant security shortcomings, raising concerns about data protection and privacy. Addressing these vulnerabilities is crucial to ensure the safe and ethical deployment of AI technologies.
Interface Loyalty and User Experience
Greg Isenberg's insights on interface loyalty underscore the importance of user experience in driving the adoption of AI technologies. Simplifying the user interface and enhancing usability can contribute to the long-term success and integration of AI in daily life.
Democratization of AI
DeepSeek's success has democratized AI development and highlighted the shift towards commoditization in the industry. As AI becomes more ubiquitous, the focus is shifting towards seamless integration and accessibility, paving the way for a future where AI is ingrained in everyday experiences.
As the industry navigates through these disruptions and transformations, it is essential for organizations to prioritize risk management, technological innovation, and ethical considerations in embracing AI advancements.
