Microsoft Bans Employees from Using DeepSeek App Over Data and Propaganda Concerns

Microsoft has officially banned its employees from using the DeepSeek app, citing concerns over data privacy and potential exposure to Chinese state propaganda, President Brad Smith said during a U.S. Senate hearing.

While DeepSeek’s AI model is available on Microsoft’s Azure cloud (after undergoing safety evaluations), the company draws a line at the app itself due to its data being stored on Chinese servers and subject to Chinese intelligence laws. Smith emphasized the app’s answers could be influenced by censorship and state narratives, prompting Microsoft to keep DeepSeek out of its internal systems and app store.

This is the first time Microsoft has publicly acknowledged such a restriction, although similar concerns have led other companies and governments to block DeepSeek. Interestingly, Smith noted that Microsoft had internally modified DeepSeek’s AI model on Azure to reduce "harmful side effects," though no technical details were shared.

While some might point out that DeepSeek is a direct competitor to Microsoft’s own Copilot chatbot, the company hasn't imposed a blanket ban on other AI chat apps — Perplexity, for instance, remains available in the Windows Store. However, Google’s Gemini and Chrome do not appear in Microsoft's app marketplace.

Microsoft's ban on the DeepSeek app could signal increased scrutiny of AI tools tied to foreign data laws, setting a precedent for how companies assess geopolitical risks in AI adoption. While the ban raises legitimate national security concerns, it also gives Microsoft a competitive edge by limiting access to a direct rival of its own AI tools like Copilot—especially since other competing apps like Perplexity are still allowed.

This move may lead to:

• More cautious enterprise adoption of non-Western AI apps.

• Pressure on app developers to host models and data outside restrictive jurisdictions.

• Greater fragmentation in the AI tool market based on data sovereignty and trust.