European firms seek greater AI sovereignty

European organizations are placing greater emphasis on artificial intelligence (AI) sovereignty by maintaining control over data and infrastructure, according to a new study by Accenture.

In Europe, 62 percent of organizations are seeking sovereign solutions in response to current geopolitical uncertainty, a concern that’s heightened among Danish (80 percent), Irish (72 percent), and German (72 percent) firms, Accenture found.

Sectors with regulatory requirements and sensitive data are most likely to lead sovereign AI adoption including banking (76 percent), public service (69 percent), and utilities (70 percent).

This trend is expected to grow over the next two years with 60 percent of European organizations planning to increase investments in sovereign AI technology.

Earlier this year, the European Union (EU) launched a €1 billion “Apply AI Strategy” to accelerate AI adoption across manufacturing, healthcare, energy, mobility, and other sectors.

What is AI sovereignty?

Sovereign AI is the capability of a nation to build and operate AI systems using its own infrastructure, data, models, and talent ensuring data security, strengthening national competitiveness, and reducing dependence on foreign technology providers.

There is a growing recognition of the strategic importance of AI sovereignty, according to Accenture. Almost three quarters (73 percent) of organizations are calling for governments and institutions, such as the EU, to play a key role in enhancing Europe's digital sovereignty through regulations, subsidies, or public investments.

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Balancing data control and access to global innovation

The Accenture study highlights that, on average, just one third (36 percent) of AI initiatives and data within European organizations require a sovereign approach due to regulatory requirements or data sensitivity. Capital markets and public services are sectors where such measures apply to a higher share of data.

European organizations are seeking a balance between data control and access to global innovation, with 65 percent acknowledging that they cannot remain competitive without non-European technology providers. Interestingly, 57 percent are considering using sovereign solutions from both European and non-European providers.

“Europe is facing an AI paradox,” commented Mauro Macchi, Accenture CEO for EMEA. “Its leaders understand the need to accelerate AI adoption to spur innovation and drive growth, but at the same time, because most AI technologies originate from outside the region, it could also be seen as a risk.”

A sovereign AI approach can help resolve this challenge by enabling European organizations to protect critical operations without hampering innovation and competitiveness, he added. “It’s with an innovative and thriving economy that we’ll be able to invest in strengthening our technology ecosystem, enabling local champions to grow and compete on the global stage.”

Reframing AI sovereignty in business

Sovereign AI is still perceived as a technical issue within businesses with only 16 percent of European companies having made AI sovereignty a CEO or board-level concern, Accenture found.

“A sovereign AI approach is not about holding everything in one place,” said Mauro Capo, digital sovereignty lead for Accenture in EMEA. “The goal is to make technology choices according to the degree of control organizations want to exercise over data, AI infrastructure, and models, while benefiting from the scale, service breadth, and pace of innovation that some non-European providers offer.”

Accenture outlines four key actions to help organizations capture the full potential of sovereign AI:

1. CEO ownership: Sovereign AI should be driven from the top, with the CEO ensuring that AI strategy aligns with enterprise risk management, growth objectives, and geopolitical dynamics to achieve meaningful results.
2. Reframe sovereignty: Move beyond treating sovereignty solely as a risk issue and position it as a driver of value creation, innovation, and competitive differentiation.
3. Expand the ecosystem: Develop hybrid ecosystems that balance local trust with global innovation, applying sovereignty measures strategically where they have the greatest impact.
4. Redefine architecture: Design AI systems across a multi-cloud environment, embedding sovereignty principles throughout the entire stack to ensure resilience and flexibility.

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