Report warns of data security risks from cheap Chinese AI tools

New Delhi: The rapid expansion of low-cost Chinese artificial intelligence tools is raising concerns over data privacy, national security and the growing dependence of Western governments and businesses on foreign technology, according to a report in the UK newspaper The Guardian.

Chinese firms, including DeepSeek and Xiaomi, are releasing AI models at prices significantly lower than those offered by many US competitors. Their open systems also allow users to modify the technology to suit their requirements, making them attractive to organisations seeking affordable alternatives.

However, DeepSeek's privacy policy states that prompts, uploaded content and personal information may be processed and stored in China, raising concerns about potential access by Chinese authorities.

Michael Wooldridge, a professor of artificial intelligence at the University of Oxford, said it was reasonable to consider the possibility that information entered into the chatbot could be shared with the Chinese state, the report noted.

The report warned that widespread adoption of Chinese AI could expose sensitive information and weaken domestic technology industries by increasing reliance on foreign suppliers.

It urged the UK to strengthen oversight of American AI services while supporting domestic and European developers rather than depending heavily on Chinese technology.

The concerns extend beyond AI to other sectors, including electric vehicles and advanced semiconductors. The report also highlighted China's growing military ambitions and the strategic importance of Taiwan, a major centre for semiconductor production.

With IANS inputs