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The US Department of Homeland Security has banned federal agencies from using Chinese AI company DeepSeek's products, citing cybersecurity, data transfer, and intelligence risks. The ban follows DeepSeek's AI models causing a major Wall Street selloff, highlighting both realized economic harm and ongoing national security concerns.[AI generated]
Why's our monitor labelling this an incident or hazard?
The event involves an AI system (DeepSeek's AI models) whose use in federal IT systems is being halted due to concerns that its use could plausibly lead to harm, specifically national security risks and information leaks. There is no indication that harm has already occurred, only that the risk is credible enough to warrant removal and procurement bans. Therefore, this constitutes an AI Hazard, as the event centers on the plausible future harm from the AI system's use rather than an incident of realized harm. The event is not merely complementary information because the main focus is on the risk and regulatory action to prevent harm, not on updates or responses to past incidents.[AI generated]