NTT DATA report reveals 96% of firms cite infrastructure as AI adoption barrier
35% of AI leaders say private/sovereign AI is their biggest hurdle to scaling.
According to NTT DATA's 2026 Global AI Report (surveying over 2,500 organizations), the push for data sovereignty is straining AI infrastructure. 95% of organizations view private or sovereign AI as strategically important, yet 96% admit their current infrastructure is slowing adoption. 35% of Chief AI Officers cite enabling private and sovereign AI as their single biggest barrier. The report highlights three categories driving these demands: mandated AI sovereignty (legal/geopolitical), regulated privacy (auditable control), and strategic AI autonomy (reducing vendor dependence and protecting IP). Nearly all C-suite executives (98%) consider a private GenAI domain essential for protecting sensitive data.
To address these challenges, 96% of organizations are considering relocating AI infrastructure to specific regions due to geopolitical pressures and supply chain concerns. Regulatory compliance forces workload placement decisions, with hybrid architectures emerging that reserve controlled environments for sensitive data and lower-risk workloads elsewhere. Privacy violations and misuse of customer data remain top governance concerns, with 57% of CEOs ranking data sovereignty as a risk. The report concludes that leaders are treating architecture, infrastructure, and governance as strategic requirements, separating data from intelligence and designing for multiple jurisdictions to balance performance, compliance, and control.
- 96% of organizations report infrastructure is slowing AI adoption, while 95% consider private or sovereign AI strategically important.
- 35% of CAIOs identify enabling private and sovereign AI as the biggest barrier, often requiring significant infrastructure changes.
- 98% of C-suite leaders say a private domain protecting IP via untrainable GenAI is imperative.
Why It Matters
Data sovereignty demands are reshaping AI architecture, forcing hybrid designs and governance-first approaches to remain compliant and competitive.