Inside Track: The DeepSeek disruption — What does the A.I. revolution mean for the Supply Chain?

Lucas Lee Featured, News, Uncategorized

The DeepSeek disruption

The tech world and financial markets were shaken up this week by the debut of a new artificial intelligence model developed in China: DeepSeek. DeepSeek’s breakthrough seems to be in achieving a previously unattainable efficiency, shattering the status quo set by the tech giants — with their conventional big-spend strategies — who have been leading the A.I. revolution to this point.

The question we’re asking at Canaan is: What are the implications for the logistics industry?

And further: How can technology innovation be leveraged to benefit our clients?

DeepSeek is already changing our understanding of A.I. cost structures

Developing an A.I. model requires massive computational resources — datasets, hardware, and human resources, among others. By optimizing algorithms and leveraging more efficient training techniques, DeepSeek was reportedly able to build its A.I. model for around $6 million, a miniscule sum compared to the billions of dollars of funding raised by established players. 

This innovation in efficiency has implications for everything from scalability to energy consumption. DeepSeek’s methodology would allow smaller businesses, organizations, or research groups to develop their own A.I. models with much more manageable budgets and on a faster timeline than previously thought possible.

What this means for supply chains

For the logistic industry, DeepSeek’s innovations have potentially accelerated the application of A.I. technologies already in development, making it all the more important for all participants along the supply chain to understand these disruptions in order to maintain a competitive advantage.

Some of the opportunities within the supply chain from A.I. applications are predictive analysis, cost efficiency, and new areas of competition globally.

However, there are also risks. Among them:

  • Data Sovereignty: Sensitive operational data such as supplier contracts or inventory levels are of high value and will be particularly sought after by A.I. models engaging with the logistics industry. Security should be a high priority for companies as they explore which A.I. models to utilize and which to avoid.
  • Regulatory Compliance: The logistics industry has always had the challenge of regulatory differences across the various jurisdictions that a shipment might traverse. The use of A.I., which though used globally but will still have its main operations based in particular countries, will complicate regulatory compliance further.
  • Trust & Transparency: As the ongoing debate over TikTok demonstrates, skepticism over data handling practices are a concern both for governments and private users. Will some companies face challenges to adoption because of a lack of transparency in their handling of data?

How Canaan can help you stay ahead in the A.I. revolution

As an established freight forwarder with expertise spanning the entire length of the supply chain and countries around the world, Canaan Group helps its clients hold the big picture while also being attentive to critical details. Providing the very best shipping solutions for our clients enables them to focus their attention on what they do best: providing excellent products and services to their clients. 

Key questions that we have been exploring with our clients as we enter the age of A.I. are:

  • How might A.I. break previous constraints on the scalability of your operations?
  • How can you evaluate the risk of using A.I. tools in your business?
  • How can you stay ahead of your competition, as everyone tries to reorientate themselves within this new landscape?

If you’d like a conversation partner in these questions, we’d be keen to chat. Reach out to us at sales@canaangroup.ca