This week, it sent ripples through the global tech scene as it soared over ChatGPT in Apple’s app store. The meteoric rise of the app has
The US-China tech rivalry has changed and the direction of AI development.
Amidst the buzz created by DeepSeek’s rise to prominence in the industry, one question looms: What does this mean for strategy of the
Third leading global nation in AI development is the United Kingdom?
Generative AI was launched by the
ChatGPT will be released on November 30, 2022. This is when large language models, or LLMs, entered the mainstream consciousness. They began reshaping industries, workflows, and everyday users explored new methods to write, brainstorm and code. We are witnessing the “DeepSeek Moment” – an important shift that shows the viability of an efficient and cost-effective AI development approach.
DeepSeek doesn’t just represent another AI tool. DeepSeek is a significant improvement over ChatGPT, and other major LLMs created by tech giants in the USA and Europe.
Existing approaches rely heavily on large-scale computing and datasets to “train” AI systems, which limits development to a few very wealthy market players. DeepSeek is not only a more efficient and cheaper way to train AI models, but its
The “MIT” license is open-source and allows users to develop and deploy the tool.
This is a great way to democratise AI. It takes over the mantle of US company OpenAI, whose
Initial mission was to “build artificial general intelligence (AGI), that is safe and benefits the entire human race” – allowing smaller players to enter and innovate. DeepSeek, by making cutting-edge AI affordable and accessible to all, has reshaped competitive landscape and allowed innovation to flourish outside the confines of large and resource-rich countries and organisations.
By training its model for a fraction of what it costs, DeepSeek has set a new standard in efficiency. It matches – and even exceeds – the performance most existing LLMs. It achieves superior results while reducing computational demands and environmental impact.
DeepSeek is important
DeepSeek has been developed by a group.
Quantitative trading experts from China. This
unconventional beginning holds lessons for the UK.
Although the UK, particularly London, has long attracted the best in science and technology, many of the most successful young graduates have tended disproportionately to choose the United States.
Careers in financehave come at the expense of innovation in critical sectors like AI. Diversifying the paths for Stem (sciences, technology, engineering, and maths) professionals can yield transformative results.
A recent and widely publicised 50-point plan by the UK government.
The action plan on AI shows glimpses of progress, but also a lack in the courage to make real changes. In a fast-moving world, incremental steps are not enough. The UK needs a plan that leverages its unique strength while addressing systemic weakness.
It’s important to recognize that the UK’s comparative edge lies in its leading expertise in interdisciplinary fields. The world-class universities, the fintech sector and the dynamic creative and professional services sectors provide fertile ground for AI application that goes beyond traditional tech silos. The intersection of AI and finance, law, the creative industries, and medicine offers opportunities to lead in niche but high impact areas.
UK funding and regulatory frameworks need to be overhauled. DeepSeek’s success highlights the importance of agile ecosystems with well-funded funding that can support large, ambitious “moonshots”. The current UK funding mechanisms are fragmented and bureaucratic, favoring incremental innovation over radical breakthroughs. This can sometimes stifle innovation instead of nurturing it. A good start would be to simplify grant applications and offer targeted tax incentives for AI startup companies.
Lastly, it is important that the UK retains its talent. The UK’s AI industry
The US and China are experiencing a brain drain of top talent as they gravitate towards better-funded opportunities. Initiatives like public-private partnerships to develop AI research can help keep talent in the country.
DeepSeek’s rise is a great example of strategic foresight. It does not merely improve existing models but redefines how AI can be developed and deployed. The UK should adopt an equally ambitious mindset and focus on areas where they can set global standards, rather than play catch-up.
The geopolitics of AI cannot be ignored. The UK is a trusted intermediary in the AI governance debate, and it has a crucial role to play. The UK can be a global leader by promoting transparent AI standards and encouraging international collaboration.
DeepSeek should be a wake-up. Britain has the talent and institutions to be a major player in AI, but it needs to act now.
Now is the time to move beyond token gestures, and adopt bold strategies that will position the UK at the forefront of an AI-driven world. This moment demands action, not more talk. DeepSeek has raised its bar. Now it’s up to the UK.
Feng Li (19459066) – Chair of Information Management and Associate Dean for Research & Innovation at Bayes Business School
City St George’s University of London
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