The privacy paradox: DeepSeek, data sovereignty, and the illusion of control
The rise of DeepSeek highlights a privacy paradox where consumers demand stronger protections yet willingly share data with platforms governed by lax regulations, particularly in China. Paul Hewett, CEO of In Marketing We Trust, argues this inconsistency calls for greater transparency, accountability, and informed choices to align consumer values with their actions regarding data privacy.
Everyone in the industry and beyond is talking about DeepSeek. It is an undeniably impressive model; its rapid growth, efficiency, and cost-effectiveness are making headlines. This new large language model also comes hot on the heels of TikTok being given a reprieve by the Trump administration, a decision that sparked ongoing debates about data privacy and national security. While many people demand stronger privacy protections, they simultaneously adopt platforms like DeepSeek, which operate under data practices that directly contradict those demands. This paradox deserves closer examination.
Over the past two years, I have been working with industry bodies and helping Australian businesses navigate the evolving requirements of the Privacy Act reforms. When it comes to privacy, we’re all living a paradox. We demand tougher protections, rallying for reform in the name of safeguarding our data. And yet, when faced with the introduction of a tool like DeepSeek, we hand over sensitive information with little consideration of the implications. It’s a telling moment; not just for consumers, but for the broader conversation about data security and sovereignty.

DeepSeek allows for the program to be downloaded onto an isolated server and firewalled against any intrusion, including that of the CCP – so long as your security is sufficient.
Compare that with the energy-intensive and megalitre-drinking-water-imbibing cloud-feeding data farms that are in the hands of less than a handful of people worldwide, with their own commercial interests in mind and with unfettered access to our personal lives via consumer interfacing.
DeepSeek’s open source might actually be the bulwark against the 1984 future that seems even more likely given recent elections. Its de-coupling from the cloud is probably the best privacy protection we’ll get.