DeepSeek AI and the Ever-Changing Technology Landscape

It has been just over two weeks since DeepSeek’s R1 took over headlines, shaking up not just the AI industry but also the stock market.

In a single day, it wiped $600 billion off Nvidia’s value. But beyond the headlines, what does DeepSeek really mean for New Zealand businesses and leaders?

Understanding what developments like these mean for AI and data is crucial. But more importantly, we believe Kiwi companies need to know where to focus to stay ahead.

The AI Disruptor: What Happened?

On January 20, 2025, DeepSeek launched R1, an open-source AI model that delivers performance on par with OpenAI’s GPT-o1 but at 25 to 30 times lower cost. Just days later, China’s Moonshot AI released Kimi, another model that outperformed OpenAI’s latest offerings.

These breakthroughs have sent shockwaves through the AI industry. Until now, the landscape seemed dominated by Western tech giants like OpenAI, Anthropic (Claude), and Mistral. The high costs and barriers to entry kept new challengers at bay, but DeepSeek and Kimi have changed the game.

Reassessing AI Strategies

This disruption has caused some companies to question their AI strategies. Many are wondering whether they need to pivot to a new platform or if the pace of change is so fast that a fast-follower model may be the better approach.

With major players like OpenAI now facing unexpected competition, businesses must reconsider how they approach AI adoption. The question is not just which AI tool to use but how to remain agile in an ever-changing landscape.

Too often, companies spend huge amounts of time assessing and debating which platform to adopt instead of focusing on their unique needs and competitive advantages.

The Business Impact: What Does This Mean?

The rise of Chinese AI models, combined with their surprisingly low development and deployment costs, has completely changed the accepted AI narrative. Technology is evolving even faster than expected, making today’s cutting-edge solutions potentially obsolete tomorrow.

The Risk of Lock-In

For business leaders, this creates a major challenge. How do you stay relevant and competitive in a constantly shifting market without locking yourself into a toolset that could soon be outdated?

This reinforces a hard truth: buying the latest tool or technology is not the solution. Pouring money into a single platform and hoping that alone will future-proof your organisation is a risky bet.

The Advantages of being Technology Agnostic

To thrive, companies need to be technology-agnostic. They must build flexibility and agility into their approach so they can adapt and switch between tools as the landscape shifts. Those who fail to do this will be left behind by faster, more nimble competitors.

By focusing on who your organsiation and your client are, your position in the market, and the advantages and weaknesses that you present, organisaitons can design business strategies, data and technology processes, and products and offerings that remain relevant even if the underlying technology evolves or the market shifts.

Future-Proofing with Strong Data Foundations

With AI and technology evolving at such a rapid pace, organisations cannot afford to be locked into a single tool or platform. The real way to build a competitive advantage and create a flexible organisation is by making your business ready for anything. Strong data foundations provide the stability and adaptability needed, no matter which platform dominates tomorrow.

Key Elements of Future-Proofed Data Foundations

• Designing around your business rather than the latest technology trends. Structuring data, processes, and procedures based on business needs ensures ongoing relevance and minimises wasted work.
• Strong data governance and management. Clear and well-documented policies and processes help keep data secure, high-quality, and usable, no matter which technology is in place.
• A Single Data Universe. A unified and structured data environment, built for business use, ensures consistency and accessibility across any tools.
• Transferable technology. Using open, widely supported tools like Python rather than proprietary software enhances flexibility, reduces vendor lock-in, and maximises long-term relevance in changing times.
• Ways of working. Embedding best practices enables teams to work effectively with data while fostering a culture of adaptability and continuous improvement.

Why It Matters

By prioritising these foundational elements, organisations ensure they are not locked into one platform or vendor. This allows them to move quickly when technology changes.

Technology will continue to evolve, bringing new methods, tools, and approaches every month. Staying ahead is not about pouring huge sums of money into the latest technology. The rea ladvantage comes from being prepared to adapt quickly without years of disruption or millions of dollars in unnecessary spending.

By focusing on building strong data foundations, organisations can confidently adopt new tools and approaches. When the next wave of innovation arrives, they will be ready to pivot without starting from scratch.

In a world where change is constant, the key to success is not in chasing the latest technology. It is in the strength of the systems behind the scenes — your data.

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Written by | Kelly Withers , Customer Success Manager at Data Insight

Kelly is a strategic thinker with a passion for helping organisations unlock the power of data. With extensive experience in SaaS, tech, and transformative businesses, he specialises in building strong relationships and identifying opportunities where data-driven insights can drive real impact.

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