By Meg Flippin Benzinga

DETROIT, MICHIGAN - March 17, 2025 (NEWMEDIAWIRE) - From TikTok to DeepSeek AI, American lawmakers, non-profits and consumer advocates are raising the alarm about China’s access to the personal data of tens of millions of Americans who use these apps.

It’s the reason Congress voted to force a sale of TikTok last year and why Republican Assembly member Carl DeMaio has put forth legislation to protect consumers’ data and privacy from foreign actors. The California politician got help from Brand Engagement Network (BEN), (NASDAQ: BNAI) in crafting the proposed rule, which would require AI, social media and other technology platforms to disclose to consumers if the platform will maintain personal information outside the US, require explicit consent by users and ban businesses from maintaining healthcare information, financial information or geolocation data in the custody of a foreign government or a third party owned or controlled by a foreign government.

BEN is built on a security-first AI model, ensuring businesses maintain full control over their data while safeguarding privacy. Unlike many AI platforms that train on public or unknown data sources, BEN’s AI operates within a closed-loop system – keeping sensitive information protected and off the public internet. 

“China is the biggest threat,” said DeMaio in an interview with Benzinga. “If they are offering products in the U.S., mining personal information could be one of their motivations. That’s why we have to have consumer disclosures and permission and the most sensitive information prohibited. No sensitive healthcare, financial or geolocation data would be allowed on the servers.”

The legislation is making the rounds at the same time the U.S. government is considering banning the China-based DeepSeek AI chatbot on government devices over national security and privacy concerns. In particular, the Trump Administration is concerned about DeepSeek’s practice of storing U.S. data on servers in China. 

BEN Is Doing It Differently 

While concerns about China’s influence with these popular apps and data privacy in the age of AI in general are reaching a fever pitch, not all AI companies are putting consumers' data at risk. BEN takes a different approach to AI, one in which it says everyone is safe and protected.

The company is making a name for itself in the AI assistant market thanks to its human-like avatars that drive better customer experience, increased automation and operational efficiencies. BEN uses much smaller data parameters than larger models like ChatGPT, enabling it to offer companies AI that is scalable and can be tailored to specific use cases. At the heart of its business model is a security-first approach. Unlike many of the unsecured AI systems that train with unknown data and have math limitations, BEN’s AI trains on client-provided data, uses mixed technology for precise math and follows clients’ internal client data management and privacy protocols. It’s also HIPAA and SOC 2-compliant.

“We are leading the charge in terms of developing safe and secure technology so that the user can derive the benefit from technology without the risk of data leakage,” Paul Chang, CEO of  BEN, told Benzinga. “We are advising DeMaio on various ways to provide Generative AI technology safely to provide consumer privacy while providing businesses with helpful agents.”

Closed Loop Is The Secret Sauce 

BEN’s work with Valio Technologies Pty Ltd., the operator of a digital platform network for patients, doctors, pharmacies, radiology, pathology and hospitals, is an example of the company’s approach. The two recently entered into a partnership to develop healthcare AI assistants focused on providing mental health support for students attending several universities in South Africa, including Tshwane University of Technology, the University of Pretoria and the University of Johannesburg. All told the AI assistants will have access to more than 315,000 college students across the country – but that doesn’t mean their data will fall into the wrong hands or end up on the public Internet. 

“Our design is a closed-loop platform. User data and inputs are not leaked into the Internet, where [they] can become searchable and training material for other AI systems,” says Rick Howard, BEN’s Chief Information & Data Officer. “We keep everything in the environment for the business we are supporting.” 

With BEN’s AI technology, the business using it has full control over the data and how it is obtained. Making sure its AI agents are compliant with data privacy rules is something BEN says is necessary for its AI to be adopted by industries. By only using customer data, BEN says it is able to provide “the most” accurate and relevant responses based on curated data instead of searching the Internet and making a guess. “We know the correct answers and responses and we know where they are and how to get them. They are in our database within the U.S. borders in a secured environment,” says Chang.

Keeping Costs Down 

BEN’s AI platform is designed for efficiency, operating on a smaller computational footprint than traditional large-scale AI models. As it stands, many of the large language AI systems require graphics processing units or GPUs to do the training. GPUs require much more energy than central processing units or CPUs. AI companies are building new data centers to house the servers necessary to do the computations and are even building power plants. BEN is different. Chang says its AI is built on a smaller footprint. “It can be deployed almost anywhere and run on CPUs instead of GPUs. It’s much more accessible, affordable and scalable for most enterprises out there,” Chang says.

AI holds a lot of promise but there are also national security and data concerns with some of the companies going after U.S. consumers. BEN is different. Its closed-loop approach can help businesses while protecting data from leakages. With its commitment to security and compliance, Brand Engagement Network (BEN) has established itself as a trusted name in AI technology. As businesses and policymakers prioritize data privacy, BEN’s closed-loop AI model provides a proven approach to safeguarding user information while delivering advanced AI capabilities.

To learn more about BEN’s AI chatbots, click here.

Featured photo by Kanhaiya Sharma on Unsplash.

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This content was originally published on Benzinga. Read further disclosures here.

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