AMSTERDAM (Reuters) -The Netherlands' privacy watchdog AP on Friday said it will launch an investigation into Chinese artificial intelligence firm DeepSeek's data collection practices and urged Dutch users to exercise caution with the company's software.

"The AP is (issuing this) warning because of the serious concerns that there are over DeepSeek's privacy policies ... and the way in which it appears to use personal information," Chairman Aleid Wolfsen said in a statement. The agency added that European citizens' personal data can only be stored abroad under strict conditions that DeepSeek must adhere to.

The Dutch announcement follows a move by Italy on Thursday to block DeepSeek's app over privacy concerns. Ireland and France have both sought information from DeepSeek on its data processing practices.

The Netherlands' AP said it was in contact with other regulators in the European Union and they will exchange information and coordinate on further steps.