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South Korea’s Spy Agency Raises Concerns Over DeepSeek’s Data Practices

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South Korea’s National Intelligence Service (NIS) has raised alarms about the Chinese AI application DeepSeek, accusing it of “excessively” collecting personal data. The NIS claims that the app uses all user input to train itself and has questioned how it handles sensitive national issues, such as the origin of kimchi.

The NIS issued an official notice last week to government agencies, urging them to take extra security precautions due to concerns over DeepSeek’s data collection practices. According to the spy agency, unlike other AI services, DeepSeek records chat histories and captures keyboard input patterns that can identify individuals. It also communicates with Chinese servers, such as volceapplog.com, which raises privacy concerns.

Several South Korean government ministries have already blocked access to DeepSeek, following the lead of Australia and Taiwan, which have also placed restrictions or issued warnings about the app. The NIS also alleged that DeepSeek provides advertisers with unrestricted access to user data and stores South Korean users’ information on servers in China. Under Chinese law, the Chinese government could request access to this data.

The app has also been criticized for providing conflicting responses to sensitive questions based on the language in which they are asked. For instance, when asked about the origin of kimchi, DeepSeek claimed the dish was Korean when the question was posed in Korean, but said it originated in China when asked in Chinese. This issue has been a source of tension between South Korea and China in recent years.

DeepSeek has also faced accusations of censoring politically sensitive topics, such as the 1989 Tiananmen Square protests. In response to questions about this, the app allegedly suggests users “Let’s talk about something else.”

DeepSeek did not respond to requests for comment. A Chinese foreign ministry spokesperson, when asked about South Korea’s actions, emphasized China’s commitment to data privacy and security, stating that the Chinese government ensures data protection in accordance with the law.

Capgemini CEO Criticizes EU’s AI Regulations as Too Restrictive

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Aiman Ezzat, CEO of Capgemini, expressed concerns that the European Union has overreached with its artificial intelligence regulations, making it more challenging for global companies to deploy AI in the region. In an interview, Ezzat highlighted the difficulties businesses face as they navigate different AI laws across multiple countries. His remarks come ahead of the AI Action Summit in Paris and amidst growing frustration from the private sector regarding AI regulations.

The EU’s AI Act, which is touted as the world’s most comprehensive AI law, has been criticized by some companies for stifling innovation. Ezzat commented, “In Europe, we went too far and too fast on AI regulation,” emphasizing that the absence of global AI standards has made the regulatory landscape increasingly complex.

Capgemini, one of Europe’s largest IT services firms, partners with major companies like Microsoft, Google Cloud, and Amazon Web Services (AWS), and serves clients such as Heathrow Airport and Deutsche Telekom. At the upcoming summit in Paris, AI policy frameworks are expected to be discussed, and Ezzat anticipates efforts to align global policy on AI.

While the AI Act won’t be fully implemented for several years, concerns have already arisen regarding privacy law violations by AI actors. Several European data protection authorities are reviewing DeepSeek, a Chinese startup that has drawn attention for its ability to compete with U.S. companies at a fraction of the cost. Despite DeepSeek’s open-source model, Ezzat noted its transparency limitations, such as the lack of access to the datasets used to train the models.

Capgemini is in the early stages of exploring the integration of DeepSeek’s models with clients, according to Ezzat.

Chinese Companies Embrace DeepSeek’s AI Amid Growing Frenzy

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Chinese companies, including Great Wall Motor and major telecom providers, are quickly integrating the AI model released by DeepSeek, capitalizing on its attention and breakthroughs. Great Wall Motor, China’s first listed automaker, confirmed that it had embedded DeepSeek’s AI into its connected vehicle system, branded “Coffee Intelligence.” This integration marks a significant shift as the company seeks to enhance its technological offerings.

Meanwhile, China’s Ministry of Industry and Information Technology (MIIT) announced that the country’s three largest telecom operators—China Mobile, China Unicom, and China Telecom—are collaborating with DeepSeek to promote the inclusive application of AI technology. This move is part of a larger trend as companies rush to incorporate the model into their products.

DeepSeek’s AI platform has sparked investor interest, fueling speculation about its disruptive potential across China’s tech sector. Stocks of Chinese companies tied to AI, including chipmakers, software developers, and data center operators, have surged in response to this new development. Capitalonline Data Service and MeiG Smart Technology, two listed companies, experienced significant stock price jumps after announcing their integration of DeepSeek’s AI. However, both firms have cautioned investors, stating that the impact on their future business performance remains uncertain.

Other industry giants like Tencent and Huawei have also joined the wave, revealing they have integrated DeepSeek’s model into their own offerings. The rapid adoption highlights the growing impact of DeepSeek’s AI on China’s tech landscape.