AI-powered tools are transforming how companies work, but at what cost? As DeepSeek, the AI chatbot topping app store charts, gains traction, security experts are raising major concerns about its potential risks. Avenue Z’s CMO, Johnny Hughes, was recently featured in Entrepreneur, breaking down why business leaders should think twice before allowing employees to use DeepSeek.
The Hidden Costs of DeepSeek
DeepSeek’s appeal is obvious. It is an affordable and highly capable AI platform, competing directly with OpenAI’s ChatGPT. But as Hughes and other experts have pointed out, there is a catch. Security vulnerabilities could put sensitive business data at risk.
An ABC News investigation revealed that DeepSeek’s code allegedly includes links to China Mobile’s CMPassport.com, a registry controlled by the Chinese government. This raises serious concerns about data privacy, surveillance, and the potential for unauthorized access to proprietary business information.
Echoes of the TikTok Security Battle
The concerns surrounding DeepSeek feel eerily familiar. Earlier this year, TikTok faced a federal ban due to its Chinese ownership and fears of government surveillance. While TikTok fought back with legal challenges and corporate restructuring, DeepSeek is now under scrutiny for similar, if not more direct, security risks.
Cybersecurity expert Ivan Tsarynny warns that DeepSeek’s digital fingerprinting may extend beyond its own platform, potentially tracking user web activity even after they close the app. For businesses handling confidential information, that is a red flag.
What Should Business Leaders Do?
Instead of a knee-jerk ban, Hughes suggests a more strategic approach to AI governance:
- Establish AI Governance Policies. Clearly define which AI tools are approved for company use and educate employees on security risks.
- Use AI Safely for Non-Sensitive Tasks. Limit AI tool usage to research, brainstorming, or content generation, not proprietary data.
- Prioritize Secure AI Platforms. Enterprise-grade AI solutions like OpenAI’s ChatGPT Enterprise and Microsoft Copilot offer stronger security measures.
- Monitor AI Usage Across the Company. IT teams should audit software usage to detect potential risks before they become threats.
- Stay Ahead of AI Regulations. With AI security regulations evolving rapidly, companies should keep up with emerging policies to ensure compliance.
Balancing Innovation with Security
AI can be a game-changer for businesses, but leaders need to balance efficiency with security. As Hughes points out, DeepSeek’s low-cost appeal may come at the expense of data protection.
Want to stay ahead of AI security risks? Read Johnny Hughes’ full take in Entrepreneur.
