Source: JD Supra

JD Supra reports that DeepSeek, a developer of AI-driven decision-making platforms, is currently under investigation by regulatory bodies for potential violations of transparency and data governance standards. The scrutiny comes amid a broader trend of regulators intensifying oversight over private AI companies, particularly those whose models have high-stakes applications in finance, healthcare, and law enforcement.

Concerns have been raised regarding DeepSeek's use of unexplainable "black box" algorithms and the limited visibility it offers into training data and model behavior. The article explores the legal implications of AI opacity, particularly under emerging risk-based regulatory regimes that demand higher standards of documentation and oversight.

This case is viewed as a potential turning point in AI regulation, signaling stricter expectations for due diligence and accountability in algorithmic systems. Legal professionals are advised to watch closely how enforcement agencies define compliance obligations in such cases.