CNBC recently spoke to companies worldwide on how DeepSeek’s new AI models will likely impact their operations and financials. Roadzen, a technology company using artificial intelligence to disrupt the auto insurance sector, was asked how things are now different with DeepSeek releasing its R1 model.
According to its chief executive Rohan Malhotra, his company helps its insurance underwriting clients speed up claim processing, cutting the time to resolve 80% of minor accident claims from six weeks to two minutes. Since the nature of processing such claims is sensitive, the company has been using sophisticated AI models that produce accurate results, such as those from OpenAI, Meta, and Anthropic. However, things may be different now that DeepSeek is in the picture.
“Our clients cannot afford a model which has 60%-70% accuracy, that’s like a major economic issue. We need to deploy models that have 95%-99% accuracy.”
-Chief executive Rohan Malhotra
Rough calculations reveal that the company may be able to incur costs 50% lower using DeepSeek than the costs incurred with OpenAI’s models.
“What we really care about is the cost of inference. We care about the accuracy of the outputs. And we care about whether this model is performing to the certain benchmarks that we’ve set, in a good way”.
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Besides cost efficiencies, other companies have lauded the decision to keep the technology open source, stating that it makes it more attractive compared to existing open-source models like Meta Platforms’ Llama. Another company excited with the advent of DeepSeek is a North Carolina-based eldercare platform CareYaya. Neal K. Shah, CEO, told CNBC that their company has started using AI to help customers fight health insurance claims denials.
“DeepSeek just lowered our costs by 90% so we can help more people,” he said in a message. “The average cost to appeal a U.S. health insurance claims denial is $43.84. We had used OpenAI and Anthropic to get the cost down to 12 cents — now we’re doing it with DeepSeek on the back end, the cost per appeal is 2 cents.”
The above findings suggest how DeepSeek may democratize artificial intelligence. However, its models are also raising concerns regarding data privacy, security, and potential for misuse. That said, while the impact DeepSeek’s models have made is undeniable, it is a wait-and-watch moment to see whether it reshapes the AI world for the better or for worse.
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9. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 7
BigBear.ai Holdings, Inc. (NYSE:BBAI) is an artificial intelligence specialist that provides decision intelligence solutions. On Wednesday, February 5th, Cantor Fitzgerald significantly increased the price target on the stock to $8.00 from $3.50 and maintained an “Overweight” rating. BigBear.ai soared after securing a major Department of Defense (DoD) contract. The DoD’s Chief Digital and Artificial Intelligence Office (CDAO) said they will advance BigBear.ai’s Virtual Anticipation Network (VANE) prototype to full use. Analysts at Cantor Fitzgerald are impressed by this contract win, along with other contracts and some recent board changes, which led them to up their price target. They have also revised their targets for BigBear.ai’s revenues for both the Fiscal fourth quarter of 2024 and full-year 2025 top-line estimates.