As AI-powered personal assistants become deeply embedded in the daily lives of large corporations, businesses and individuals alike, the balance between convenience and control is shifting. From China’s DeepSeek to the West’s AI race, artificial intelligence is no longer just a tool — it is an omnipresent force shaping global surveillance, economic power structures, and the future of digital autonomy. As AI systems become more advanced and widely available — often for free or at a fraction of the cost — what is their real value and if AI developers are the ones truly benefitting, what does that mean for the rest of us?

Read More: The Influence of AI in the Interior Design Industry

Is The West Losing The AI Race?

Chinese AI model DeepSeek, which recently took Silicon Valley by surprise and became one of the most downloaded apps in the United States has raised security concerns due to a “hidden code” that allegedly transmits user data to the Chinese government, according to cybersecurity experts. Researchers from Feroot Security, a Canada-based cybersecurity firm, discovered that DeepSeek’s browser-based version not only collects user information but also generates a unique digital “fingerprint” to track activity across multiple websites.

Read More: The Influence of AI in the Interior Design Industry

Launched in January 2025 as a free, open-source platform, DeepSeek sent shockwaves through the tech industry, triggering over USD 1 trillion in stock market losses and threatening the dominance of U.S. leaders such as Nvidia. Its sudden rise has cast doubt on the perceived dominance of well-funded U.S. AI companies like OpenAI, which has reportedly invested billions in similar technologies. As the South China Morning Post reports, Hangzhou-based DeepSeek rose to worldwide fame last month after it released the V3 large language model (LLM) and R1 reasoning model, which the company said showed capabilities comparable to products from ChatGPT creator OpenAI, despite being developed at significantly lower costs. DeepSeek was founded by entrepreneur and businessman Liang Feng in 2023. By offering an advanced AI tool for free — despite its relatively low reported development costs — DeepSeek is reported to have unsettled Silicon Valley and challenged assumptions about American leadership in the AI space.

The AI landscape is no longer a Silicon Valley monopoly as for years, Silicon Valley dictated the pace of AI development, but that dominance is slipping. The rise of Chinese firms — particularly DeepSeek — has accelerated global competition, leading to an unprecedented shift in technological power. No longer is the race confined to a handful of Western tech giants — now, Eastern AI firms are outpacing them in speed, efficiency, and sophistication.

Despite DeepSeek’s rise, the Wall Street Journal reported that Amazon, Google, Microsoft and Meta continue to “pour billions into artificial intelligence”. The report states that Microsoft, Google, and Meta Platforms are projected to collectively invest over USD 215 billion in capital expenditures for their current fiscal years, marking an annual rise of more than 45 percent. Meanwhile, Amazon.com — while withholding a full-year forecast — indicated that its total capex across various divisions is set to exceed USD 100 billion, with the bulk of this increase being directed towards AI development.

These figures reflect the growing intensity of the AI race, despite investor concerns surrounding the influence of China’s DeepSeek and the uncertainty over whether these major U.S. firms will see a return on their massive investments. Investors are particularly unsettled by DeepSeek’s ability to replicate much of the functionality of leading American AI systems, all while spending less and utilising fewer, less powerful chips, as claimed by its Chinese creators. However, U.S. company leaders remain confident, highlighting their own technological progress and arguing that reduced costs will drive AI adoption and boost demand for cloud services, which AI heavily relies on to function.

So why do Western AI models struggle with inferential reasoning compared to their Eastern counterparts? AI development in countries like Russia and China often take a more centralised, state-backed strategy. This support includes access to vast amounts of data and resources, which can help hone the models to specific needs, including advanced reasoning. Western companies may not have the same access to data and government-driven initiatives that prioritise AI development.

Then there is the discussion of public versus private sector approaches. Different countries are taking varied approaches to AI regulation, with the public and private sectors playing distinct roles. In China, for instance, the government leads AI development, driving a centralised strategy that ensures national interests are prioritised. In contrast, the West follows a more fragmented, market-driven approach, where tech giants hold significant sway. This highlights how each model presents its own set of challenges and opportunities for growth and governance in the AI rat race.

The Future of Language Models

DeepSeek’s latest iteration has redefined the limits of AI-powered assistants. Unlike standard chatbots, which rely on predefined responses, DeepSeek anticipates user needs before they even ask. It analyses past interactions, contextual nuances, and even subconscious patterns to refine its responses. Unlike ChatGPT, which still struggles with complex inferential reasoning, DeepSeek has developed a more sophisticated approach — one that does not just respond but understands intent between the lines. This raises a critical question: while Western AI models prioritise accessibility and ethical constraints, Eastern firms are refining AI to a near-intuitive level. Will this give them a strategic advantage? And what does this level of sophistication mean for privacy and control? However, despite once being a frontrunner in advanced AI models, DeepSeek has now been dethroned by an even more sophisticated competitor in Alibaba.

According to a report by USA Today, Alibaba’s release of its Qwen 2.5-Max artificial intelligence model on the first day of the Lunar New Year highlights the intense pressure exerted by DeepSeek’s recent success. Qwen 2.5-Max — according to Alibaba’s cloud unit — surpasses both DeepSeek-V3 and other leading models like GPT-4o and Llama-3.1-405B in performance. This move follows DeepSeek’s disruptive impact, particularly after its DeepSeek-V2 model, which triggered a price war in China by being open-source and exceptionally low-cost. In response, Chinese firms like ByteDance, Baidu, and Tencent have quickly updated their own models to stay competitive, further intensifying the AI arms race within China and globally.

Read More: The OpenAI Debate and the Ramification of Improper AI Governance

Who Controls Your Digital Footprint?

AI is already shaping human behaviour in ways most people do not realise. From a commercial aspect with AI-written books and deepfake models used for branded commercials to automated journalism, artificial intelligence is not just assisting creativity — it is replacing it. The question is no longer whether AI will generate content but whether we will be able to distinguish human work from machine-generated output.

Most users engage with AI tools without realising they are feeding them data — data that becomes fuel for even more advanced learning systems. Governments and corporations are increasingly aware of AI’s power, leading to rising restrictions and tighter control. AI’s presence is often unseen — tracking, predicting, and influencing decisions without users’ explicit awareness.

The rise of AI platforms like DeepSeek has sparked new conversations around digital sovereignty. With AI models and data being controlled by a select group of tech giants, the question of who owns and governs digital resources becomes ever more pressing. As seen with the United States’ Silicon Valley, nations that develop and control their own AI technology may gain unprecedented power, influencing global economic and political dynamics.

Read More: Is Cinema Preparing for An AI Takeover?

AI Agents and the Erosion of Human-Centric Intelligence

With Oracle debuting its AI agents, the next phase of the AI race is here. These self-learning systems are not just programmed to respond; they adapt, evolve, and outthink human-driven decisions. The race is not about creating better chatbots — it is about who can build AI systems that function independently of human intervention. DeepSeek’s latest model faced immediate restrictions from hundreds of companies and government agencies. A newly proposed law in the U.S. could impose hefty fines or even prison sentences on individuals who use the Chinese AI app DeepSeek.

The bill — introduced by Republican Senator Josh Hawley — seeks to ban U.S. citizens from contributing to the advancement of artificial intelligence technology in China. It also aims to restrict the importation of AI-related technology or intellectual property developed within the country. If passed, the legislation would enforce strict penalties, including fines of up to USD 1 million for individuals and as much as USD 100 million for businesses. Those found in violation could also face up to 20 years in prison.

AI As a Force of Good

It is not all doom and gloom, despite the fear-mongering surrounding AI, its real impact is already proving to be transformative. From streamlining business operations to ensuring fairer decision-making in industries like insurance and governance, AI is stepping in where human limitations exist. Rather than a threat, AI could be the key to a more efficient, equitable, and forward-thinking world. One such argument is that AI is not replacing human intelligence but rather amplifying it.

Insurance, healthcare and the finance industry could benefit from some element of AI intervention. With insurance, AI can be used to analyse patterns in claims to identify potential fraud while AI-powered automation could speed up claims approvals, reducing paperwork and human errors. As it stands, chatbots already handle routine inquiries, AI could make machine learning models assess customer data to offer personalised policies, improve efficiency and reduce wait times. From the administration angle, AI could reduce paperwork and improve patient data management within the healthcare sector while AI-driven models can predict stock market trends and optimise trading strategies within finance and banking. AI has the potential to meet growing demands that are no longer humanly possible to fulfill at a large scale. AI also has the potential to eliminate human biases in vetting processes, from loans to medical diagnostics. AI automated systems could ensure consistency and prevent human errors or prejudices alongside faster, data-driven decisions that benefit businesses and consumers alike.

AGI stands for artificial general intelligence and refers to machines that are able to apply their knowledge and learning ability to a wide range of tasks. Most AI today is “narrow” or “specialised” and designed for specific tasks. True generalised AI will have the capacity to think, act and behave far more closely to the way we do across tasks involving creativity and complex problem-solving.

Public Over Profit – Cost, Control, Complexity

Instead of resisting AI, embracing it for good could be the biggest opportunity of our generation. The real failure is not AI — it is the lack of vision on how it is implemented. Smart systems are helping governments make better infrastructure and policy decisions. The debate of AI ethics has been ongoing for decades and it is time to focus on solutions instead of fueling paranoia. AI is not the problem — how we choose to use (or misuse) it is.

Read More: For Better or Worse: Here Is How AI Artist Botto is Reshaping the Art Industry

The AI race is no longer about innovation alone — it is about control. With each advancement, AI developers are not just creating better tools; they are designing systems that learn from us, adapt, and evolve. While AI is being given away for free or at minimal cost, the real currency is data, influence, and power. There should also be some importance placed on having diverse teams in AI development as AI systems are shaped by the biases and perspectives of those who create them. Without a diverse group of developers, there is a risk that AI may perpetuate social inequalities or missed opportunities for more inclusive solutions.

The real failure is not the implementation of AI itself but rather the profit-driven rush to dominate it. It is a scene all too familiar — when left unchecked, technological advancements prioritise corporate gains over public good. Governments should have systems in place to ensure AI serves society, not just those who control it. Yet, this has been an ongoing discussion for at least the last 30 years or so — warning of automation, bias, and unchecked surveillance — only to find ourselves repeating the same cycle.

For more on the latest in business reads, click here.