Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Microsoft Blocks DeepSeek App for Employees Only
AI | May 9, 2025
Image: Freepik/iconicbestiary
Microsoft Blocks Employee Use of DeepSeek But Still Offers Its AI Model
On May 8, 2025 during a U.S. Senate testimony on 'Winning the AI Race', Microsoft Vice Chair Brad Smith said the company blocked employees from using the DeepSeek AI app because of the app’s data collection practices, risks of propaganda, and Chinese state censorship. Smith confirmed that DeepSeek “is not available on the Microsoft store” and cannot be used by staff. The full hearing coverage can be found at TechCrunch.
But at the same time Microsoft continues to offer DeepSeek’s open source AI models through its Azure cloud platform, raising questions for both the public and business users alike. According to Dataconomy, Microsoft claims that it has audited, changed, and sandboxed the models before release to remove parts they deem are risky or unsafe.
See: Fintech Leader Insights on DeepSeek’s AI Disruption
This mixed approach has raised some concerns since the AI model can be used by others without Microsoft's internal protections. Some smaller companies may also not have the tools or awareness to even evaluate these risks, whether they be related to security or reputation.
Why This Still Raises Red Flags
It's the same underlying tech. Even if Microsoft tweaks the model, the core code base still comes from DeepSeek, so any unknown, unspottable, or embedded risk could still be present.
The open source models that Microsoft offers via its Azure cloud platform, could have been adversely modified by bad actors for risks like surveillance, disinformation or phishing campaigns.
See: Waymo Plans to Train AI Using In-Car Camera Footage
It's a double standard for Microsoft to say it's unsafe for employees but okay for customers to use it. It sends a mixed message and in certain cases a reputational or regulatory risk could grow for companies that adopt it.
If governments and regulator tighten controls around AI supply chains, especially foreign ones from China, then companies could face compliance, or import/export restrictions in the the future. The State of New York has already banned DeepSeek on official devices earlier this year due to data privacy and censorship concerns.
Why It Matters
Fintechs and financial institutions need to verify AI model origins and audit what is under the hood, and understand how its being deployed while staying aware of compliance risks. Microsoft’s internal controls may reduce risk for its own teams, but the public and smaller firms are left more exposed.
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