European organizations step up focus on sovereign AI

European companies are increasingly prioritizing control over their data and digital infrastructure, driving demand for sovereign AI solutions, according to new research from Accenture. The trend reflects growing geopolitical uncertainty and the need for greater technological self-reliance.

Sovereign AI refers to the ability of a country to develop and deploy artificial intelligence using local infrastructure, data, models, and talent. This approach aims to safeguard data from foreign access, enhance competitiveness, and reduce dependency on overseas technology providers.

Rising demand for sovereign solutions

The study shows that 62 percent of European organizations are seeking sovereign AI solutions. The demand is particularly strong in Denmark (80 percent), Ireland (72 percent), and Germany (72 percent). Highly regulated sectors handling sensitive data, such as banking (76 percent), public services (69 percent), and utilities (70 percent), are leading adoption.

Over the next two years, 60 percent of European organizations plan to increase investment in sovereign AI technologies, with Germany (73 percent), Italy (71 percent), and Switzerland (64 percent) leading this expansion.

Mauro Macchi, CEO, Accenture in EMEA: "Europe is facing an AI paradox. 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. 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."

Balancing control and access to innovation

According to the survey, 36 percent of AI initiatives and data within European organizations require a sovereign approach due to regulatory or data sensitivity concerns. Capital markets and public services show the highest need for such measures.

At the same time, many organizations recognize the importance of global collaboration. Sixty-five percent believe they cannot remain competitive without non-European technology providers, while 57 percent are exploring sovereign solutions that combine European and non-European partners.

Accenture is supporting this shift by helping clients such as Telia Cygate in Sweden adopt scalable and secure AI services. The company is also working with Amsterdam-based AI infrastructure provider Nebius to help European clients build sovereign AI frameworks that meet data residency and security requirements. Nebius operates AI cloud platforms across Europe and the Middle East, designed to manage AI workloads using energy-efficient data centers.

Mauro Capo, Digital Sovereignty Lead, Accenture in EMEA: "A sovereign AI approach is not about holding everything in one place. 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. These choices are decided by the use case and national priorities. Some cases need only local data residency, while others, in defense for instance, call for full sovereignty over the different AI components - local data, infrastructure and model, advanced encryption, or even air-gapped systems when necessary."

From risk management to strategic advantage

Only 19 percent of European organizations currently view sovereign AI as a competitive advantage, while nearly half (48 percent) cite regulatory compliance as their main motivation. For most, it remains a technical rather than a strategic issue, with just 16 percent elevating it to CEO or board-level priority.

However, 73 percent of respondents believe governments and institutions such as the European Union should play a key role in strengthening Europe’s digital sovereignty through regulation, subsidies, and public investment. Small and medium enterprises are also considered central to this effort, with 70 percent of respondents emphasizing their importance in expanding access to sovereign solutions.

Four actions to advance sovereign AI

Accenture outlines four steps for organizations aiming to benefit from sovereign AI:

CEO ownership: Make sovereign AI a top-level strategic priority aligned with enterprise growth, risk, and geopolitical context.

Reframe sovereignty: Position sovereignty as a source of competitive advantage, not just risk mitigation.

Expand ecosystems: Combine local trust with global innovation through hybrid technology ecosystems.

Redefine architecture: Embed sovereignty into every AI layer—data, infrastructure, models, and applications—for greater resilience.

The study draws on quantitative, qualitative, and policy research, based on responses from 1,928 organizations across 28 countries and 18 industries, collected between July and August 2025. Participants included senior technology and policy leaders from both public and private sectors.

The full report can be accessed here

www.accenture.com

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