Welcome to this week’s edition of CIOsurge!

This week:

• A potential ban on DeepSeek AI models could disrupt enterprise AI adoption, forcing CIOs to reconsider cloud-based AI investments.

• Microsoft 365 is dropping its free VPN feature, impacting users relying on built-in security tools.

• Burberry appoints Charlotte Baldwin as CIO to lead its digital transformation and e-commerce strategy.

Let’s make this week a game-changer.

Stay sharp. Stay ahead.

🚧 DeepSeek Ban Could Disrupt Enterprise AI Adoption

A potential ban on DeepSeek’s AI models in the U.S. and EU could force enterprises to reevaluate their AI investments, particularly those relying on cloud-hosted versions via Azure, AWS, or Nvidia. While self-hosting remains an option, it comes with higher costs and operational complexity. The uncertainty underscores the importance of regulatory due diligence before committing to AI models that could face geopolitical scrutiny.

The last thing any CIO wants is to invest heavily in an AI model only to see it banned overnight. While DeepSeek offers cost-effective alternatives to OpenAI, the potential for compliance risks and sudden deprecation makes it a high-risk choice for production workloads. If you’re already integrating DeepSeek, now is the time to develop a contingency plan in case regulations shift.

Enterprises should approach generative AI with a clear risk framework. If you’re considering DeepSeek, hosting it locally mitigates some risks, but it’s an expensive trade-off. For most organizations, waiting for regulatory clarity while experimenting in non-critical environments is the best course of action. A well-diversified AI strategy ensures you’re not caught off guard by shifting policies.

 - Zack Tembi

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🗞️ At A Glance

Microsoft 365 is losing its free VPN feature

Riot raises $30 million for its cybersecurity product suite focused on employees

Blockchain’s New Identity Paradigm Helps Reimagine Enterprise Cyber Protection

AI ‘godfather’ predicts another revolution in the tech in next five years | Artificial intelligence (AI)

💡 CIO Spotlight

Burberry appoints Charlotte Baldwin as CIO to drive tech transformation

• Charlotte Baldwin joins Burberry as CIO, tasked with leading the brand’s global technology team amid a major digital transformation.

• Her appointment follows Burberry’s "Forward" plan, which prioritizes e-commerce upgrades and data-driven decision-making after a tough sales year.

• Baldwin, formerly of Costa Coffee and Bupa, will report to CEO Joshua Schulman starting in March.
  

  Read the full story

Panera Bread Appoints Former Dunkin’ Executive Santhosh Kumar as Chief Information Officer

• Kumar will lead technology development across Panera Bread’s 2,200 US and Canada stores starting February 12, 2025.

• With experience launching Dunkin’s DD Perks and leading cloud modernization at UNFI, he will enhance Panera’s My Panera loyalty program.

• Kumar joins as the fourth senior hire of 2025, reporting to Interim CEO Paul Carbone.

  Read the full story

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