BACK
The Advent of DeepSeek: A Game-Changer in AI Transformation

The Advent of DeepSeek: A Game-Changer in AI Transformation

In the rapidly evolving landscape of artificial intelligence, the emergence of DeepSeek marks a significant milestone for organizations striving for AI transformation. This powerful new engine is reshaping the AI gold market by leveraging reinforcement learning (RL) to innovate in unprecedented ways. DeepSeek's R1 model, with its surprisingly low training cost of $6 million, has captured the attention of the capital market, challenging the status quo and setting new benchmarks in AI development. However, it's important to note that the method's efficacy is not yet proven, and the low cost of creation remains unverified.

Reinforcement Learning: A New Frontier

Chain of Thought (CoT) is a method in AI where models generate intermediate reasoning steps to solve complex problems. It improves logical reasoning by breaking tasks into smaller parts, enhancing accuracy and interpretability.

Reinforcement Learning (RL) is a machine learning approach where an agent learns by interacting with an environment, receiving rewards or penalties. The goal is to maximize cumulative rewards, allowing the agent to discover optimal strategies through trial and error.

DeepSeek's R1 model stands as a formidable rival to GPT-O1, particularly excelling in reasoning capabilities. By prioritizing large language models (LLM) and reasoning, DeepSeek has pushed the boundaries of what was previously thought possible. In its third iteration, the model has made remarkable strides in mathematical reasoning and has enhanced its ability to communicate logic in human language. This advancement is not just a technical feat but a testament to the potential of pure RL in enabling LLMs to learn and reason autonomously, challenging the prevailing theory that vast amounts of CoT data are necessary. However, it is crucial to acknowledge that DeepSeek has not been thoroughly tested, with reports indicating potential vulnerabilities.

Accessibility and Innovation

One of DeepSeek's standout features is its accessibility. It is free for general users and uniquely offers internet connectivity, providing recommendations with explanations of its thought process. This transparency in AI decision-making is a significant step forward, fostering trust and understanding among users. Moreover, DeepSeek's development team, comprising around 140 employees, mostly recent Chinese university graduates, underscores China's re-emergence in AI innovation, despite challenges like GPU bans.

Trust: The Cornerstone of AI Transformation

As organizations embrace AI transformation, trust must remain at the core of their principles. Before deploying tools like DeepSeek, it is crucial to establish robust AI/data policies, including anonymization and encryption principles, permissions and access controls, and adherence to regulations and compliance standards. A "Trust by Design" strategy should be adopted, with dedicated Privacy & Security teams managing third-party risks, continuously monitoring and auditing AI usage, and maintaining open communication within organizations.

Challenges and Considerations

Despite its groundbreaking capabilities, some key challenges hinder the professional use of DeepSeek. Concerns about tracking and collection of unnecessary device information, patterns identification, and data storage exclusively on Chinese territory raise red flags. Additionally, weak encryption poses risks of intercepted interactions, which, even when anonymized, can potentially be traced back to users.

Alternatives and the OSF Approach

Given these challenges, organizations must explore alternatives that align with their security and compliance needs. At OSF, we utilize AllAi, a secure and efficient AI tool tailored for companies working with Salesforce technologies. AllAi offers a robust and trustworthy solution, ensuring that AI transformation is both innovative and secure. For OSF, the potential cost reduction in generic LLMs is exciting, but our true advantage lies in how AllAi fine-tunes and personalizes our models behind secure firewalls.

In conclusion, while DeepSeek represents a significant leap in AI capabilities, organizations must navigate its challenges with caution. By prioritizing trust and exploring secure alternatives like AllAi, companies can harness the power of AI transformation responsibly and effectively.

Gerard Szatvanyi

Author: Gerard Szatvanyi

Gerry, a founding member and former CEO of OSF Digital, brings a wealth of experience and leadership to his new role as Chief AI Officer. With a strong track record in driving innovation and strategic growth, he’s focused on taking OSF’s AI initiatives to the next level.