A new Accenture report reveals that European organizations are increasingly prioritizing AI sovereignty to maintain control over data, infrastructure, and technology, driven by growing geopolitical concerns and the need to protect sensitive information. The study finds that 62% of European companies are actively pursuing sovereign AI solutions, with higher rates in Denmark (80%), Ireland (72%), and Germany (72%). Sectors with strict regulatory requirements and high data sensitivity—such as banking (76%), public services (69%), and utilities (70%)—are leading the charge. Sovereign AI refers to the ability of a country or organization to develop and deploy AI using local data, infrastructure, models, and talent, reducing dependence on foreign technology providers and safeguarding against external data access. The report highlights that 60% of European organizations plan to increase investments in sovereign AI over the next two years, with Germany (73%), Italy (71%), and Switzerland (64%) showing the strongest commitment. Despite the push for control, European leaders recognize the need to remain competitive. While 36% of AI initiatives and data require a sovereign approach due to compliance or sensitivity, 65% of organizations agree they cannot remain competitive without leveraging non-European technologies. A significant 57% are open to using sovereign solutions from both European and international providers, signaling a balanced strategy. Accenture’s Mauro Macchi, CEO for EMEA, describes Europe’s situation as an AI paradox—urgent need to adopt AI for innovation and growth, yet reliance on foreign-developed AI systems poses strategic risks. Sovereign AI, he argues, offers a path to innovation without compromising security or sovereignty. The report also underscores that sovereign AI is still largely viewed as a compliance or risk management issue. Only 19% see it as a competitive advantage, and just 16% have elevated it to a CEO or board-level priority. However, 73% believe governments and institutions like the European Union should play a stronger role through regulation, subsidies, and public investment. Small and medium enterprises are seen as vital to this effort, with 70% emphasizing their importance in accessing sovereign solutions. Accenture recommends four key actions to unlock the full potential of sovereign AI: making it a CEO-led initiative, reframing sovereignty as a source of value rather than just risk mitigation, building hybrid ecosystems that blend local trust with global innovation, and redefining AI architecture across a multi-cloud environment to embed sovereignty at every layer. The research is based on a global survey of 1,928 senior technology and policy leaders across 28 countries and 18 industries, conducted between July and August 2025. Accenture continues to support European clients in building sovereign AI capabilities, including partnerships with AI infrastructure providers like Nebius, an AI cloud platform with data centers across Europe and the Middle East, and helping organizations like Telia Cygate implement secure, scalable AI services.