Could Using DeepSeek Soon Be Illegal? What Real Estate Agents Need to Know

Artificial intelligence is advancing at an incredible pace, but lawmakers in the U.S. are moving just as fast to regulate it. A new bill introduced by Senator Josh Hawley could make it illegal for Americans to use DeepSeek, a powerful AI model developed in China.

The proposed legislation aims to block U.S. citizens from using, importing, or advancing AI technologies developed in China, with penalties including up to 20 years in prison and fines reaching $100 million for companies that violate the law.

Harvard AI research fellow Ben Brooks has called this "the most aggressive legislative action on AI" to date. But is this just the beginning of a broader crackdown on AI technologies?

DeepSeek: The Global Crackdown on China’s AI Giant

DeepSeek has quickly become one of the most downloaded AI apps worldwide, but it’s also facing intense scrutiny from governments over national security concerns.

Chinese tech companies have long been under the spotlight due to China’s data laws, which require companies to share user data with the government upon request. This has led to fears that DeepSeek’s AI chatbot could pose cybersecurity risks, enable misinformation, and allow foreign data access.

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Countries That Have Banned DeepSeek

1. TAIWAN

Taiwan has officially banned all government agencies from using DeepSeek, citing serious security risks.

Taiwan’s Ministry of Digital Affairs stated:

"DeepSeek AI service is a Chinese product. Its operation involves cross-border transmission and information leakage, leading to significant security concerns."

2. ITALY

Italy became the first European country to block DeepSeek on January 30.

The Italian data protection authority ordered a block on DeepSeek, stating that the company refused to cooperate with regulators. The agency warned that DeepSeek was violating European data privacy laws and announced a formal investigation into its operations.

3. UNITED STATES

The U.S. has taken an even stronger stance against DeepSeek, introducing a bill that could make using the AI tool outright illegal.

Senator Josh Hawley has introduced legislation that would:

• Prohibit Americans from using or advancing AI models developed in China.

• Impose up to 20 years in prison for anyone importing “technology or intellectual property” related to AI from China.

• Fine individuals up to $1 million and companies up to $100 million for violations.

While the bill has been tabled for now, it reflects growing fears among lawmakers about China’s influence in AI. Congress is racing to shut China out of the U.S. tech market, with both conservative and progressive leaders like Elizabeth Warren (D-MA) supporting tougher AI export controls.

Additionally, Texas Governor Greg Abbott banned DeepSeek and other Chinese-owned apps from all state-issued devices, stating:

"Texas will not allow the Chinese Communist Party to infiltrate our state's critical infrastructure through data-harvesting AI."

The U.S. Navy and NASA have also blocked DeepSeek:

• Navy personnel were ordered not to use DeepSeek for work or personal use, citing security and ethical concerns.

• NASA has officially banned DeepSeek’s AI tools from all government devices and networks.

The urgency behind these moves is clear—lawmakers believe Chinese AI could pose a serious national security threat, and U.S. tech companies are still reeling from the rise of DeepSeek, which wiped out over $1 trillion in market value from AI giants like Nvidia.

Countries Investigating DeepSeek

Several other countries have not yet banned DeepSeek but are actively investigating its practices:

🔍 Belgium, Ireland, France, and South Korea have all launched inquiries into how DeepSeek handles user data and whether it complies with data protection regulations.

These nations are closely monitoring DeepSeek’s compliance with privacy laws and could follow Italy’s lead in restricting access if concerns are not addressed.

What This Means for the Future of AI Regulation

The backlash against DeepSeek signals a global shift toward tighter AI regulations. Governments are increasingly worried about foreign influence, data security, and AI’s role in misinformation.

If more countries continue to ban DeepSeek, this could pave the way for even harsher AI restrictions in the future, particularly on non-Western AI models.

We’ve already seen this play out with TikTok, where governments attempted to restrict its use over similar data concerns. Now, AI appears to be the next battleground.

With DeepSeek proving that it can match OpenAI’s ChatGPT while using a fraction of the resources, it has raised concerns that China is becoming an AI superpower.

Will AI become restricted to only a few "trusted" nations?

Will businesses have to rethink their entire AI strategy?

These are the pressing questions policymakers are now debating.

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