Artificial Intelligence: Antitrust launches investigation into DeepSeek over lack of disclosure on “Hallucinations”

DeepSeek

The Italian Competition Authority has announced the launch of an investigation into Hangzhou DeepSeek Artificial Intelligence Co. Ltd. and Beijing DeepSeek Artificial Intelligence Co. Ltd., the companies behind the Artificial Intelligence (AI) system known as DeepSeek. At the core of the inquiry is the allegedly failure to provide users with clear information regarding AI’s “hallucinations” meaning inaccurate, misleading, or entirely fabricated response. This conduct could constitute an unfair commercial practice violating Articles 20, 21, and 22 of the Italian Consumer Code.