Majority of Organizations Flag Data Sovereignty as Leading Obstacle to AI Expansion, Arqit Survey Finds
62% Cite Data Sovereignty as Top Factor Holding Back Public Cloud AI Projects
As the integration of AI into enterprise networks accelerates, fresh survey data from Arqit and Intel shows that concerns over data sovereignty and privacy are now the chief cause of delays in AI projects built on public cloud infrastructure. According to the study, a significant 62% of respondents point to sovereignty and privacy risks as the main drag on cloud-based AI deployments, surpassing other technical or financial hurdles.
Sovereignty Access Remains Limited: Only 8% Report Sovereign Edge Capabilities
The survey—a poll of Mobile World Live readers—exposes that one in six organizations lack access to facilities with guaranteed data sovereignty altogether. Only 8% of participants report having guaranteed sovereignty at the network edge. This shortfall underscores the urgency: with AI workflows spreading across public clouds, private data centers, and edge locations, the ability to enforce sovereignty constraints remains elusive for most.
| Key Survey Metric | Survey Result (%) |
|---|---|
| Data sovereignty & privacy biggest factor slowing AI (public cloud) | 62 |
| Urgency of using AI for network safety | 69 |
| Organizations with NO access to sovereign facilities | 16 |
| Organizations reporting guaranteed edge sovereignty | 8 |
| Plan to use confidential computing for sovereignty (next 12 months) | 80 |
| Operational efficiency negatively impacted by AI delays | 53 |
| Competitive advantage impacted | 48 |
| Customer experience impacted | 45 |
Operational Setbacks and the Sovereignty Gap
The lack of sovereign facilities is already causing headaches: 53% of organizations point to lost operational efficiency due to AI delays, while nearly half say it erodes competitive edge and diminishes customer experience. As AI becomes central to threat detection and network safety, the inability to guarantee sovereign control over sensitive data creates both practical and strategic roadblocks.
Confidential Computing Seen as Essential in the Next Year
The path forward may hinge on confidential computing—80% of respondents expect to leverage these technologies within twelve months to extend data control across both cloud and edge. However, with only 41% planning truly end-to-end deployments, many organizations may still face persistent sovereignty gaps that could hamper full-scale AI transformation.
Arqit’s Quantum-Safe Approach Addressing the Challenge
Arqit positions its portfolio as a direct response to these sovereignty constraints. Its Encryption Intelligence platform detects cryptographic exposure and bolsters compliance, while NetworkSecure™ delivers provably secure post-quantum cryptography for data in transit. At MWC 2026, Arqit and Intel will demonstrate how operators can enhance network safety with AI without losing control over their most sensitive data streams.
The Takeaway: Data Sovereignty No Longer Optional for AI Progress
With AI’s promise hinges on trust, the survey’s findings reveal a clear message: sovereignty and privacy controls are not just compliance boxes—they’re now mission-critical enablers for the next wave of secure, AI-powered innovation. As more organizations look to confidential computing and quantum-safe solutions, the market may see a swift evolution in how data is protected and AI projects are deployed.
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