DeepSeek or DeepShock? What the public sector needs to know
DeepSeek, a China-based AI developer, is shaking up the market with the unveiling of affordable, open source large language models (LLMs) that run on minimal processing power.
DeepSeek, a China-based AI developer, is shaking up the market with the unveiling of affordable, open source large language models (LLMs) that run on minimal processing power. This has caused a severe market disruption which presents notable opportunities and challenges for public sector organisations in the UK, as well as the wider AI ecosystem.
The way forward requires thoughtful attention from CIO’s and data leaders.
DeepSeek’s innovation lies in its ability to deliver advanced AI capabilities with significantly lower computational requirements.
By reducing energy consumption and operating costs, DeepSeek makes cutting-edge AI accessible to organisations that have traditionally been constrained by limited budgets and infrastructure. For the public sector, this presents a game changing opportunity to adopt AI at scale, and comes hot off the heels of the UK Government’s AI strategy.
But don’t be guided by unfettered optimism. Public sector organisations must honestly assess their real state of readiness, determining whether they possess the technical expertise and organisational frameworks needed to effectively integrate and manage such systems.
There is no need to dive feet first into DeepSeek (or any other LLM’s) for the time being. The technology isn’t going to disappear anytime soon.
DeepSeek says that it is committed to open source development. This further amplifies its disruptive potential, because unlike proprietary platforms, DeepSeek’s open source model allows for extensive customisation, enabling organisations to tailor solutions to their unique needs.
Gone are the days of relying on the proprietary-LLM's view of the market, their roadmaps and their timelines. We are now entering the era of rapid innovation, customisation and community.
But pretty much any open source project brings its share of risk. Security vulnerabilities and a lack of robust oversight could expose sensitive data to exploitation, particularly in sectors that handle confidential or highly sensitive data, or those that will rely on the LLM for a mission-critical use case.
Operating within China’s regulatory framework, DeepSeek faces heightened scrutiny over data security and geopolitical concerns, raising questions about its suitability for adoption in the UK public sector.
Questions about data sovereignty and compliance with data regulations like GDPR are critical. The potential for sensitive information to be exposed to unauthorised access, either through vulnerabilities or state influence, has not yet been tested and demands stringent safeguards.
Localising data storage within the UK and conducting regular third-party audits can mitigate some of these risks, though these measures may increase operational costs. There is also the potential of hidden ‘back door’ access which may expose vulnerabilities to sensitive data or even the wider estate.
The appropriateness of adopting DeepSeek in the UK public sector must also be examined through the lens of geopolitics. There are parallels with the 2020 ban of Huawei’s 5G infrastructure being used at the core of Britain’s mobile telecommunications networks.
Huawei’s role raised significant concerns among the UK and its intelligence partners, particularly the Five Eyes alliance, over potential risks to national security. The eventual decision to exclude Huawei from 5G networks reflected these tensions, highlighting the broader risks of integrating technology from nations with divergent geopolitical interests.
DeepSeek could raise similar issues. While its open source nature may appear to mitigate some risks, the potential for state influence cannot be ignored. The use of DeepSeek in sensitive public sector applications might expose critical infrastructure or citizen data to vulnerabilities. Additionally, partnerships with allies who share intelligence with the UK could be strained if DeepSeek’s involvement is perceived as a security risk.
Balancing the need for innovation with national security considerations will be critical. Measures such as third-party code reviews, strict procurement policies, and collaboration with trusted international partners can help navigate this complex landscape.
Perhaps the most profound challenge lies in navigating the ethical dimensions of deploying DeepSeek in sensitive areas. Ensuring fairness, transparency, and accountability in AI-driven decisions will require robust ethical frameworks and oversight mechanisms. Without these safeguards, public trust could erode, particularly if AI outputs reinforce biases or lead to unfair outcomes.
The establishment of independent oversight bodies and adherence to UK government / CDDO standards can help mitigate these risks.
To maximise the benefits of DeepSeek while addressing its risks, we recommend the following:
By adopting these strategies, the UK government can harness the transformative potential of DeepSeek while safeguarding public trust and aligning deployments with broader societal goals.
DeepSeek represents an opportunity to revolutionise public services, but realising its promise requires a thoughtful, proactive approach that prioritises innovation, security, and accountability.
DeepSeek, a China-based AI developer, is shaking up the market with the unveiling of affordable, open source large language models (LLMs) that run on minimal processing power.
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