AI Data Sovereignty
Utilising AI systems within your organisation comes with certain obligations, such as AI data sovereignty. Data used by artificial intelligence (AI) must follow the laws of the local government from which the data was collected or created. The use of a private AI platform helps keep data and processing within a particular country, making it easier for your organisation to follow data sovereignty.
What is AI Data Sovereignty?
AI data sovereignty is the confirmation that data used and generated by AI remains subject to the laws, policies, and control of your country. Essentially, it is about who controls the data, where it is stored and processed, and whose laws apply to it. For example, UK organisations that use AI and store the data on a UK server have a high degree of data sovereignty.
Why it matters now
The digital sovereignty of AI is crucial today, as AI systems are deeply interconnected and learn from each other. AI adds another concern to data security in the cloud, as the data may be sent to another model for inference or training. Strict regulations were also brought in against the AI such as the EU AI Act to ensure data sovereignty. If the entire AI server is an external model provider, you have limited control over where processing occurs and geopolitical restrictions. The use of private AI gives you control over your data ensuring you’re within governance boundaries.
How is data sovereignty determined?
Data sovereignty isn’t just determined by where the server sits. It is determined by location, legal jurisdiction, control and contractual obligations. The main factor to be considered for AI is where data is processed. Your data might be currently located in the UK, but if you send the contents to an AI model running in the US, the processing will be considered a cross-border data transfer. When determining AI data sovereignty, you can assess it based on a spectrum:
- Low sovereignty – Public AI which is externally processed and under the provider’s controlled infrastructure, creating multiple jurisdictions
- Medium sovereignty – Dedicated cloud environment which is processed regionally and has contractual restrictions with controlled customer data
- High sovereignty – A private infrastructure that is processed on a local private cloud or hardware with controlled access and defined legal jurisdiction
For highly sensitive industries, private AI allows for complete control over sensitive data and therefore, compliance with data regulations within the country.
Core risk of not having data sovereignty
Not having data sovereignty means that you don’t have full control of where your digital files live or which law governs them. This can resort in legal fines or even security breaches. Having an air gapped AI system keeps sensitive data within your environment, AI can then be used with control and within jurisdictional boundaries.
How a private AI platform delivers this
Private AI processes data within the organisation’s secure environment, allowing full control of all information. AI models run on a self-hosted AI rather than a public API, meaning exposure to data leaks or cross-border transfer isn’t a risk.
AI data sovereignty vs data privacy
Understanding the difference between data sovereignty and data privacy within AI helps manage risks and regulatory compliance. Data privacy controls how personal information is used, and data sovereignty decides which government holds legal authority over the data.
| AI Data Sovereignty | Data Privacy | |
| Focus | Data and AI control | Data protection |
| Concern | Loss of data control and foreign jurisdiction | Unauthorised access, disclosure or misuse |
| Access | Authorised users and providers | Authorised users and systems |
FAQs
What is data sovereignty
Data sovereignty is the principle that digital data must be compliant with the laws and governance of the country in which it is collected, stored or processed.
What is data sovereignty in cloud computing
Data sovereignty within cloud computing means maintaining control over your data in the cloud. Cloud providers can exist across several locations, and therefore laws of all locations must be followed.
Why is sovereignty important for AI use?
AI allows information to move from internal systems into external systems. This applies the pressure on having visibility and control of the AI workflow within an organisation.
| Feature | OptimaGPT | ChatGPT |
|---|---|---|
| Human-like conversation | ||
| Easy API | ||
| Runs on-premises/private cloud | ||
| Full data privacy | ||
| Guaranteed dedicated performance |
Take Control Over Your AI and Keep Data Sovereign
If your industry holds sensitive information that must comply with legal requirements, retaining a private AI platform can help keep your data sovereign.