Are Chinese AI Models Risky? (www.rickmanelius.com)

A recent discussion has emerged around the risks associated with using Chinese AI models, specifically in the context of compliance with SOC 2 audits. A founder expressed concerns regarding the high costs of using models like Anthropic while exploring alternatives like DeepSeek, which is significantly cheaper but hosted on Chinese servers. The initial fear stems from potential data security implications when using these foreign-hosted models. The author emphasizes the importance of understanding several layers of risk: the model’s origin, the harness that runs the model, the context of data flow, and where inference takes place. The key takeaway for organizations is to focus on their data governance practices rather than the nationality of the AI models they use. While Chinese-origin models may raise concerns about output quality and potential security risks, the greatest vulnerabilities lie in how data is managed and the permissions granted to the tools connecting to the models. The author advises using non-Chinese models whenever possible, but if using a model like DeepSeek, it should be run locally or on Western-hosted services, with strict governance over the data being processed. This delineation helps mitigate risks, allowing organizations to pass compliance audits while still leveraging advanced AI capabilities without geopolitical anxieties impacting their operations.