AdviserSoftware.com, part of FTRC, has partnered with Robert Kirk, CEO of InterGen Data, to analyze the risks associated with using DeepSeek, an AI platform gaining traction among financial advisers. Their findings reveal significant concerns around data privacy, user liability, and compliance, offering recommendations to help advisers navigate these challenges.
Key Risks Identified:
- User Liability for Legal Costs: DeepSeek’s terms require users to reimburse legal fees, arbitration costs, and fines arising from their actions, including third-party claims.
- Data Privacy and Government Access: User data, including text, audio, and chat history, is stored on servers in China, subject to local cybersecurity laws that mandate data sharing with authorities.
- Content Ownership and Licensing: While users retain rights to their inputs, DeepSeek secures broad usage rights, including the ability to modify and distribute user-generated content for commercial purposes.
- Compliance and Monitoring: Inputs and outputs are scanned for prohibited content, with violations potentially leading to account suspension or bans without notice.
- Third-Party Data Sharing: SDKs from Chinese tech firms like Tencent and ByteDance may expose user data to advertising partners and government-aligned entities.
Recommendations for Advisers:
- Avoid sharing sensitive or confidential information.
- Be aware of jurisdictional risks, particularly regarding data storage in China.
- Audit third-party integrations to minimize exposure to Chinese infrastructure.
- Understand licensing terms to protect proprietary information.
Robert Kirk, CEO of InterGen Data, emphasized, “The hidden risks around data privacy, ownership, and liability are significant. Firms must ensure their AI partners align with the highest standards of security and compliance.”
Ian McKenna, founder of AdviserSoftware.com, added, “Advisers must thoroughly understand and document these risks before using any AI service.”