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AI is advancing fast, and DeepSeek, a Chinese AI model, is gaining attention for its reasoning skills, open-source approach, and integration into platforms like WeChat (the versatile and hugely popular Chinese messaging app that combines social media, mobile payment, and other services). It rivals industry giants like OpenAI and Google while using fewer resources, making it an attractive option for AI enthusiasts.
But here's the real concern
What happens to your private data when using AI models like DeepSeek, ChatGPT, Gemini, or Claude?
AI models process and sometimes store user inputs, which can pose privacy risks — especially when data is handled under different regulations. With DeepSeek based in China, concerns arise over government access, data retention, and security vulnerabilities.
This article explores:
- How AI models handle private data
- The risks of data leaks and government oversight
- Why using AI for security questionnaires can be dangerous
- A safer alternative for businesses needing compliance automation
Let's break down these risks and find out how to keep your data secure.
The Rise of AI Models and the Data Privacy Question
AI chatbots like DeepSeek, ChatGPT, Gemini, Claude, and Meta AI are becoming integral to modern business operations. These models process user queries in real time, providing insights, recommendations, and automated responses.
They are increasingly used for business intelligence, security questionnaires, and compliance processes, helping organizations streamline operations and improve efficiency.
However, a critical concern remains—what happens to the data input into these AI models?
How AI Models Process User Queries
When a user submits a query to an AI model, the system follows a structured process:
- Data Input: The model receives and analyzes the text, breaking it down into contextual elements.
- Pattern Recognition: The model generates responses based on patterns learned during training, relying on probabilities rather than real-time data retrieval.
- Response Generation: The AI formulates an answer that aligns with the input and delivers it back to the user.
Most AI models are designed to improve over time, and some retain query data temporarily to refine their responses. While companies claim to anonymize user inputs, the potential for data retention, storage, and unintended access raises significant privacy concerns.
The Growing Reliance on AI for Security and Compliance
Businesses are increasingly turning to AI to handle security questionnaires, compliance documentation, and regulatory assessments. AI streamlines these processes by automating responses, analyzing compliance documents, and extracting insights from large datasets to support risk management. These capabilities reduce the time required for regulatory tasks, making compliance more efficient.
However, not all AI providers operate under the same legal and regulatory standards. Companies like OpenAI (ChatGPT), Google (Gemini), Anthropic (Claude), and Meta (Meta AI) are subject to strict privacy regulations in the U.S. and Europe, such as GDPR and CCPA. These laws impose transparency requirements, data protection rules, and financial penalties for non-compliance.
In contrast, DeepSeek operates under Chinese regulations, which differ significantly. China’s cybersecurity laws allow broader government access to stored data, and enforcement mechanisms for user privacy protections are less strict.
This raises concerns for businesses handling sensitive compliance data, as information processed by DeepSeek may not have the same level of legal safeguards as AI models governed by Western regulations.
While AI improves security and compliance processes, businesses must consider where their AI provider is based, what regulations apply, and how data is handled before integrating these tools into critical workflows.
Why Businesses Should Be Concerned
Organizations using AI for security and compliance must evaluate how different AI models handle data storage, security, and regulatory oversight.
In the U.S. and Europe, AI companies are subject to strict data protection laws such as GDPR (Europe) and CCPA (California). These regulations enforce transparency, data control, and strict penalties for privacy violations. Users can request data deletion, and companies must follow clear policies on data retention and security.
DeepSeek, however, operates under Chinese law, where AI regulations are fundamentally different. The Chinese government has broad authority to access data stored on domestic servers, and there are fewer legal consequences for data retention, data sharing, or security breaches. While companies like OpenAI and Google face regulatory scrutiny and fines for mishandling user data, DeepSeek operates under a framework where government access and long-term data retention are not as restricted.
Businesses handling sensitive compliance data should carefully assess where their AI provider is based and what regulations apply to their information. Using AI for security processes can improve efficiency, but without clear oversight, confidential data may be exposed to risks beyond a company’s control.
Ways to Access DeepSeek and Their Privacy Implications
DeepSeek can be used online through its web and mobile apps or run locally. Each method impacts data security and usability differently.
Using DeepSeek Online – Convenient but Less Private
The fastest way to access DeepSeek is through its web app or mobile app, requiring no installation or setup. This ensures users always get the latest model updates and the best performance. Businesses can also integrate DeepSeek via API for automation and efficiency.
However, using DeepSeek online means data is processed on its servers, which may raise privacy concerns. As with other cloud-based AI models, user inputs are stored externally, making it crucial to evaluate potential data retention and security risks before sharing sensitive information.
Running DeepSeek Locally – More Private but Requires Setup
Being open-source, DeepSeek can be downloaded and run on a local machine, ensuring full data privacy by eliminating reliance on external servers. This is ideal for organizations handling confidential data or those needing control over AI processing.
However, running DeepSeek locally requires technical expertise and powerful hardware. A strong GPU, ample RAM, and storage space are necessary for smooth operation. Additionally, an offline model won’t have access to real-time updates, potentially limiting its accuracy compared to cloud-based alternatives.
DeepSeek's Privacy Controversies
Company Background
DeepSeek is an AI development firm based in Hangzhou, China, founded in May 2023 by Liang Wenfeng, a graduate of Zhejiang University and co-founder of the quantitative hedge fund High-Flyer, which owns DeepSeek.
Operating as an independent AI research lab under High-Flyer, DeepSeek has rapidly advanced in the AI industry, gaining significant attention for its innovative approaches.
Data Handling Practices
DeepSeek's data handling practices have raised significant concerns. The company collects extensive user data, including chat histories and search queries, processed on servers located in China. Under China's cybersecurity laws, the government can demand access to stored data, posing risks for businesses handling sensitive information.
The company has not disclosed how long it retains user data or if it deletes inputs over time. Without clear retention policies, users cannot be sure whether their information remains stored indefinitely or could be accessed later.
Security Breaches and Leaks
In January 2025, a publicly accessible DeepSeek database exposed over one million sensitive records, including chat logs and API keys. Security experts also discovered that DeepSeek's iOS app transmitted unencrypted data, increasing the risk of interception.
These flaws highlight serious weaknesses in its data protection measures. Due to these concerns, South Korea suspended new downloads of DeepSeek, while the U.S. Navy and National Security Council initiated investigations into its security risks. Australia is also considering a potential ban.
Risks of Data Falling into the Wrong Hands
The extensive data collected by AI models like DeepSeek can be vulnerable to misuse if accessed by malicious actors. Potential risks include the creation of deepfakes, misinformation campaigns, and sophisticated cyberattacks.
Unauthorized access to sensitive business information could lead to espionage, financial loss, or reputational damage. The integration of AI systems with inadequate security measures further exacerbates these risks, making it imperative for organizations to assess the security protocols of AI service providers.
DeepSeek's rapid ascent in the AI landscape is accompanied by substantial privacy and security concerns. Organizations must exercise caution and conduct thorough due diligence when considering the integration of such AI models into their operations.
Comparing DeepSeek to Other AI Models – Is This a Broader Issue?
AI privacy concerns extend beyond DeepSeek, as all major AI models collect and process user data in some form. However, DeepSeek raises additional red flags due to China's strict data laws and security vulnerabilities.
ChatGPT (OpenAI, USA) claims not to store data for enterprise users but to retain inputs from free users for model improvement. OpenAI has faced scrutiny over potential data exposure, leading to new privacy controls, but risks remain for free-tier users who lack control over data retention.
Gemini (Google, USA) inherits Google's long history of data collection. Google has faced regulatory action for how it processes user information, raising concerns about whether Gemini may retain or use inputs beyond immediate interactions.
Claude (Anthropic, USA) is designed to be more privacy-conscious, temporarily storing conversations for training but with stricter access controls. Despite this, data retention still exists, and the company has not disclosed how long temporary data is stored.
Meta AI (Facebook, USA) operates under a company with one of the worst reputations for privacy. Given Meta's history of data leaks, tracking, and sharing user information without consent, concerns persist over how its AI models handle sensitive business or personal data.
While privacy concerns are a universal issue in AI, DeepSeek stands out due to its compliance with China's cybersecurity laws, which allow government access to stored data.
Combined with recent security breaches and regulatory scrutiny, this places it at a higher risk level compared to its Western counterparts. Businesses handling sensitive data should carefully evaluate the risks before using AI tools for compliance, security, or confidential operations.
The Danger of Using AI for Security Compliance & Business Data
AI is becoming an essential tool for security teams, compliance officers, and legal departments, but its risks cannot be ignored. When businesses use AI for security questionnaires and compliance automation, they may unknowingly expose sensitive information to third parties, security breaches, or even government surveillance.
Why AI in Security Compliance Poses Risks
AI models process vast amounts of sensitive business data. If not properly secured, this data can be stored, accessed, or exploited in ways that put organizations at risk.
- Third-Party Data Access – Many AI platforms store user inputs on external servers, where they may be accessed by vendors, AI developers, or unauthorized entities.
- Security Vulnerabilities – AI systems are not immune to breaches. DeepSeek recently exposed over one million sensitive records, including chat histories and API keys, due to a misconfigured database. Weak security measures, such as unencrypted data transmission, further increase the risks of interception.
- Government or Competitor Exploitation – DeepSeek operates under China's strict cybersecurity laws, allowing government access to stored data. If a company enters confidential security policies into an AI system that later falls under regulatory scrutiny or is compromised, it could leak valuable trade secrets or compliance vulnerabilities.
How Businesses Can Protect Their Data
- Use AI Models With Strict Privacy Controls – Choose AI providers that do not store sensitive inputs and offer on-premise deployment options for compliance-related tasks.
- Encrypt and Limit AI Inputs – Avoid submitting unfiltered sensitive data. Instead, sanitize inputs before sharing them with AI tools.
- Monitor Regulatory Developments – Stay updated on global AI regulations to ensure that the AI tools used for compliance remain legally and ethically sound.
- Run Open-Source AI Models Locally - Businesses can run open-source AI models on their own servers, eliminating the need to send data to third parties.
AI can enhance security compliance, but it also introduces serious privacy risks. Organizations must carefully assess AI tools before entrusting them with sensitive business data.
AI for Security Questionnaires: A Smarter, Safer Approach
Businesses handling security questionnaires and compliance processes need AI solutions that prioritize data security, privacy, and compliance. General-purpose AI models can store or expose sensitive information, making them unsuitable for handling confidential security data. Instead, organizations should adopt AI solutions designed specifically for security compliance to maintain full control over their information.
Why Security-Focused AI Matters
Unlike generic AI, automation for security questionnaires is built to protect sensitive data, enforce strict access controls, and align with compliance regulations. These solutions help streamline security workflows while minimizing the risks of third-party data access or leaks.
Leading companies have integrated AI-driven compliance automation to reduce manual workload, speed up security questionnaire responses, and ensure data remains protected. With a dedicated security-first approach, businesses can automate compliance efficiently without compromising confidentiality.
Keeping Security Up to Date
Security and compliance requirements are constantly evolving, so AI solutions must stay ahead of regulatory changes and new risks. The right AI for security automation is continuously updated to meet compliance requirements, ensuring businesses remain secure and compliant at all times.
FAQ – Common Questions About DeepSeek and AI Privacy Risks
1. Can DeepSeek access my past conversations?
DeepSeek, like other AI models, may store user inputs temporarily, but the company has not disclosed clear data retention policies. Unlike Western AI providers, which allow users to delete their data, DeepSeek operates under Chinese regulations, where long-term storage and government access are possible.
2. If I use a VPN, can I prevent DeepSeek from tracking my data?
A VPN can hide your location but does not prevent DeepSeek from processing and storing your inputs once you submit them. If privacy is a concern, the best approach is to avoid sharing sensitive information with any AI model that does not guarantee strict data protection policies.
3. What specific data does DeepSeek collect from users?
DeepSeek collects user inputs, chat histories, and possibly metadata such as timestamps, device information, and IP addresses. Since it operates on Chinese servers, this data may be subject to government access under local cybersecurity laws. However, the company has not provided clear transparency on data retention policies or whether user data is anonymized.
4. How can businesses protect themselves when using AI for security and compliance?
Businesses should choose AI providers with strict privacy controls, avoid sharing sensitive information with AI tools that store user inputs, and consider on-premise AI solutions to keep data fully in-house. Regular audits, encryption of AI inputs, and staying informed about global AI regulations can also help reduce risks when integrating AI into security and compliance workflows.
Final Thoughts – Should You Trust AI Like DeepSeek With Your Data?
AI is changing how businesses manage data, but not all models prioritize security and privacy. While DeepSeek offers advanced capabilities, its history of data breaches and unclear retention policies raise concerns for handling sensitive business information.
Companies using AI for security compliance must consider where their data is stored and who can access it.
AI can be a powerful tool, but choosing the right solution is critical. Businesses should prioritize AI designed for compliance automation to maintain control over sensitive data while minimizing risks.
Solutions like Vendict provide secure automation for security questionnaires, helping businesses streamline compliance without compromising data privacy.
