Skip to content
SmarterBiz.ukUK AI & Software Guide

Data Protection

Is DeepSeek AI Safe for UK Businesses? A Data-Protection Guide

Is DeepSeek AI safe to use for business? We explain DeepSeek's data storage in China, UK GDPR international-transfer risks, regulator action, and safer ways to use DeepSeek's open-weight models.

SmarterBiz Editorial TeamUK SME Technology DeskUpdated 3 min read

Quick answer

DeepSeek's AI models are capable and free, but its consumer app and website store user data on servers in China according to DeepSeek's own privacy policy. For UK businesses, that raises UK GDPR international-transfer and confidentiality risks, so we advise against entering personal or confidential data. If you want DeepSeek's capabilities, run its open-weight models on UK or EU infrastructure you control.

Key takeaways

  • DeepSeek's privacy policy says data is stored in the People's Republic of China.
  • Several European regulators, including Italy's, have taken action against the DeepSeek app.
  • Do not paste customer, employee or commercially sensitive information into the DeepSeek app.
  • Self-hosting the open-weight model removes the data-location issue.

What is DeepSeek AI?

DeepSeek is a Chinese AI company whose reasoning models attracted global attention for matching leading Western models at far lower cost. It offers a free chat app and website, a low-cost API, and open-weight model files that anyone can download and run.

Where does DeepSeek store your data?

DeepSeek's privacy policy states that the information it collects is stored on servers located in the People's Republic of China. That includes prompts, uploaded files and chat history, as well as device and usage information.

Under UK GDPR, sending personal data to a country without a UK adequacy decision requires appropriate safeguards and a transfer risk assessment. Most small businesses cannot realistically carry out that assessment for a consumer chat app.

What have regulators said?

In early 2025, Italy's data protection authority ordered restrictions on DeepSeek's app over data-handling concerns, and other regulators and governments opened inquiries or restricted its use on official devices. The UK's ICO has reminded organisations that they must assess the data-protection risks of any AI tool before using it. Check the ICO website for current guidance.

How to use DeepSeek more safely

  1. Never enter personal data (customers, staff, suppliers) or confidential business information into the app.
  2. Use it only for public information such as general coding questions or public research.
  3. Self-host the open-weight model on UK or EU cloud infrastructure you control, so no data leaves your environment.
  4. Or use a UK/EU-hosted provider that offers DeepSeek's open model within its own data boundary.
  5. Record the decision in your AI policy and data map.
Le ChatPro ~£13–£15/mo8.0ClaudePro ~£18/mo9.4Microsoft 365 CopilotAdd-on ~£18–£25/user/mo8.8

Frequently asked questions

Is DeepSeek safe to use?

DeepSeek is safe to use for general, non-sensitive questions, but its app stores data in China. UK businesses should not enter personal or confidential information into it. Self-hosting the open-weight model is a safer option.

Is DeepSeek GDPR compliant?

Using the DeepSeek app with personal data creates UK GDPR international-transfer risks because data is stored in China, which has no UK adequacy decision. Several European regulators have taken action against the app.

Is DeepSeek banned in the UK?

DeepSeek is not banned for UK businesses or consumers, but some organisations and governments have restricted its use on official devices. Businesses should assess the risks before using it.

Can I run DeepSeek locally?

Yes. DeepSeek publishes open-weight models that can be run on your own hardware or cloud servers, including smaller distilled versions that run on a powerful workstation.

SmarterBiz Editorial Team

Our editors test AI and business software against the realities of running a UK small business: sterling pricing and VAT, UK GDPR, HMRC's Making Tax Digital rules and British English output.

How we test · Report a correction

Keep reading