The sovereign AI market is booming, but many providers using the "sovereign" label cannot back up their claims, according to new research from Omdia.
Sovereign AI: A Playbook for Success evaluates the terms of service, service level agreements, data processing agreements, privacy practices and certifications of 35 sovereign AI providers in 20 countries. These include frontier AI labs, hyperscalers, datacenter firms, neoclouds and telecom operators.
Omdia found that sovereignty is often little more than a marketing adjective meaning local assets:
Almost a third (28%) of providers disclose no proof of sovereignty, and some expect enterprises to pay for audits to verify their claims.
Eight in 10 contracts state network resilience is out of providers’ control or responsibility.
Two thirds limit compensation for non-performance to service credits, and vague "best efforts" language is widespread.
US-headquartered AI providers offer better service transparency and contract terms than a majority of local sovereign AI providers, with providers in India a notable exception.
Sovereignty is shifting IT budgets. Up to 45% of large enterprises plan to add or replace an ICT supplier for sovereignty or compliance reasons within 18 months.
Read the full press release here.