DeepSeek vs ChatGPT: What they mean for supplier risk management

Artificial intelligence (AI) is transforming the way businesses work, helping with everything from crunching data to brainstorming creative ideas. Two of the most talked-about AI tools right now are DeepSeek AI and ChatGPT.

DeepSeek is a technical problem-solver, great for coding and analyzing data, while ChatGPT is like a conversational genius, perfect for writing and answering questions. But as these tools grow in popularity, they also come with risks—especially for businesses relying on vendors and supply chains. Let’s dive into how these tools work, their strengths, and what businesses can do to stay secure.

What is DeepSeek AI?

DeepSeek AI has been making waves in the AI world. It’s an open-source tool designed for solving complex problems, like data analysis and coding. It recently even overtook ChatGPT as the top free app on the App Store.

Key features of DeepSeek

• Technical expertise: DeepSeek is built to tackle tasks like analyzing large datasets, finding patterns, and running advanced calculations.
• Affordable pricing: The API is incredibly budget-friendly, starting at just €0.50/month.
• Open-source model: Developers can modify and adapt it to suit their needs, offering flexibility but also raising security concerns.

What are the risks?

While DeepSeek is powerful, it comes with some big risks:

1. Data privacy concerns: Reports show that DeepSeek collects large amounts of user data—including keystrokes and uploaded files—and stores it on servers in China, where the government has access to this data.
2. Open-source misuse: Its flexibility makes it easy for bad actors to adapt the tool for harmful purposes, like cyberattacks on vendor systems.
3. Censorship issues: Certain politically sensitive topics may result in biased or restricted outputs.

Anthony Kimery from Biometric Update warns that DeepSeek’s ties to the Chinese government make it especially risky for businesses managing sensitive data in their supply chains.

What is ChatGPT?

ChatGPT is one of the most widely used conversational AI tools. Built by OpenAI, it’s loved for its ability to create content, answer questions, and even simulate human-like conversations.

key features of ChatGPT

• Conversation mastery: ChatGPT handles natural language beautifully, making it ideal for chatbots and customer support.
• Creative flexibility: Businesses use it for generating marketing content, drafting emails, and more.
• Freemium model: While the free version is popular, the Pro subscription costs €20/month and offers faster, more advanced capabilities.

What are the risks?

• Accuracy issues: ChatGPT sometimes makes up incorrect facts (known as hallucinations), which can mislead users.
• Privacy risks: If sensitive information is shared without safeguards, it could lead to data exposure.

How DeepSeek and ChatGPT compare

Why this matters for your business

Cybersecurity concerns

AI tools can be exploited if not used carefully. DeepSeek’s open-source design could allow hackers to target vendors in your supply chain, while ChatGPT might be used to generate realistic phishing emails that trick employees or partners.

Privacy issues

According to Update News 360, DeepSeek collects a wide range of user data, including text inputs and uploaded files. This data is stored on servers in China, raising concerns about compliance with global privacy standards. Businesses need to ensure their vendors are protecting sensitive information.

Impact on supply chains

When vendors use AI tools without proper safeguards, it creates weak points in your supply chain. For example, if a vendor relies on DeepSeek but doesn’t manage its data securely, it could expose your business to cyber threats.

How to stay safe when using AI

What can you do right now?

If you’re worried about your vendors’ AI practices, here are three steps to get started:

1. Ask your vendors key questions:
   • What AI tools are they using?
   • How do they secure the data processed by these tools?
   • Are they following privacy and cybersecurity laws?
2. Review your contracts: Make sure agreements include clear terms for data protection and regular risk assessments.
3. Watch for warning signs: Pay attention to vendors with unclear policies or delays in providing security documentation.

Train your team

Australia’s Minister for Science has warned businesses to “be very careful” when dealing with tools like DeepSeek. This is where training comes in. Programs from Abilene Academy help your team understand how to use AI tools responsibly and recognize risks before they become problems.

Build a strong risk management plan

Partnering with experts like Abilene Advisors can help your business develop a strategy that covers:

• Evaluating vendors’ AI practices.
• Monitoring for cyber risks.
• Ensuring compliance with privacy and security standards.

Take it a step further with Supplier Shield

If you want to manage these risks more efficiently, Supplier Shield can help. Here’s how:

• Track vendors in real-time: Manage and assess vendors with automated tools.
• Create custom evaluations: Tailor vendor questionnaires to your unique needs.
• Get clear risk insights: See cybersecurity and financial risk scores for your vendors, all in one place.

Supplier Shield starts at €41.58/month and offers enterprise-level plans for businesses managing multiple vendors. Check out the full pricing and features here.

DeepSeek and ChatGPT are incredible tools, each with its own strengths. DeepSeek is great for solving technical problems, while ChatGPT excels in conversations and creativity. But these tools come with risks, especially for businesses that rely on supply chains.

By starting with basic checks, using tools like Supplier Shield, training with Abilene Academy, and working with Abilene Advisors, you can embrace AI’s benefits while keeping your business secure.

AI is here to stay. Let’s use it to move your business forward—safely and confidently.

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