DeepSeek’s Security Risks: What Business Leaders Need to Know

DeepSeek is gaining traction as a low-cost AI tool, but in my Entrepreneur feature, I break down why its security risks could turn it into a serious liability for businesses.

As the CMO of Avenue Z, I’ve spent years analyzing emerging AI trends and security risks—and DeepSeek is raising serious red flags. In my recent Entrepreneur feature, I break down why DeepSeek’s low-cost appeal might come with hidden security threats that businesses can’t afford to ignore.

The Hidden Costs of DeepSeek

DeepSeek’s affordability and advanced AI capabilities have made it a serious competitor to OpenAI’s ChatGPT—but there’s a major catch:

DeepSeek’s 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 unauthorized access to proprietary business information.

For businesses handling confidential data, that’s a red flag.

Echoes of the TikTok Security Battle

The security concerns surrounding DeepSeek mirror the TikTok debates that eventually led to a federal ban on government devices.

While TikTok fought back with legal challenges and 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, tracking user web activity even after the app is closed.

What Should Business Leaders Do?

Instead of reacting with a knee-jerk ban, businesses need a strategic approach to AI governance to protect sensitive data while still leveraging AI’s benefits.

  • Establish AI Governance Policies – Define which AI tools are approved and educate employees on security risks.
  • Use AI Safely for Non-Sensitive Tasks – Restrict AI tool usage to research, brainstorming, and content creation—not proprietary data.
  • Prioritize Secure AI Platforms – Enterprise-grade 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 regularly to identify risks before they become threats.
  • Stay Ahead of AI Regulations – With AI security regulations evolving, businesses must keep up with compliance requirements.

Balancing Innovation with Security

AI is transforming business operations, but leaders must balance efficiency with security.

My biggest takeaway?

“DeepSeek’s low-cost appeal may come at the expense of data protection. Businesses need to be proactive, not reactive, in AI security.”

Want to stay ahead of AI security risks? Read my full take in Entrepreneur or MSN.

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