In recent years, the rapid development of artificial intelligence (AI) has produced a variety of technologies that can increase the efficiency of companies and revolutionize decision-making. A new AI system called DeepSeek-R1 has recently made headlines – but not only in a positive sense.
What is DeepSeek?
DeepSeek, a Chinese AI startup, has attracted worldwide attention with its DeepSeek-R1 model. The company claims that its model was trained with less than 6 million US dollars in computing power, which is extremely cost-effective compared to Western models such as ChatGPT.
DeepSeek-R1 is touted as a state-of-the-art AI that supposedly enables better analytics, more accurate predictions and seamless integration into business processes. Despite the hype, there are increasing reports of vulnerabilities, risks and lack of data security associated with the technology.
The risks of DeepSeek
1. Lack of transparency and data integrity
DeepSeek uses proprietary algorithms that are not transparent about how they work. Users have reported that the AI provides biased answers or blocks access to certain information. For companies that depend on reliable data, this can lead to significant problems in decision-making.
2. Doubts about data quality
There has also been criticism from official bodies. The Australian Minister for Industry and Science, Ed Husic, has expressed concerns about the quality of the information provided by DeepSeek and advised caution when using it.
3. Regulatory uncertainties
In a world where data protection laws such as the GDPR or the CCPA are becoming increasingly important, regulatory compliance is crucial. DeepSeek has not yet provided clear evidence that the platform meets these requirements. This can lead to legal and financial consequences for companies.
4. Cyberattacks and security concerns
DeepSeek recently faced massive cyberattacks, which resulted in new users no longer being able to register. This raises serious questions about the security and stability of the platform. Companies that process sensitive data could run considerable risks as a result of such vulnerabilities.
How DeepSeek can still be used safely
Despite these risks, there are ways to use DeepSeek-R1 safely and in compliance with regulations. One promising approach is the use of so-called “distilled” variants of the model, which have been optimized for secure deployment by companies like IBM. Through distillation, a technique that reduces AI models while maintaining core functionality, these models can be efficiently and securely integrated into existing IT infrastructures.

Conclusion: better to be safe than sorry
The introduction of AI in businesses offers enormous opportunities but also poses significant risks if unsafe technologies are used. DeepSeek may advertise innovative features, but reports of security vulnerabilities, lack of transparency, and regulatory uncertainties should be taken as warning signs.
However, customized, distilled variants of DeepSeek-R1 on AI platforms with governance functionalities, such as IBM watsonx, demonstrate that it is possible to leverage the benefits of AI without compromising security and reliability. Businesses should proceed with caution and opt for technologies that are not only innovative but also trustworthy and compliant with regulatory standards.
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