The technological landscape is rapidly changing. Consequently, data and AI sovereignty has emerged as a significant global priority for enterprises. According to their latest research, only 13% of large enterprises have actually achieved full data and AI sovereignty. They did so by creating their own platforms. The new culture of self-reliance has its roots in an intense desire to comply and follow regulations. Traditional cloud solutions fell short of those key cybersecurity requirements.
EDB ran an extensive analysis of over 15,000 unique simulations across 250 distinct variables. Those results showed that as long as a database is at the center of your mission, it is the most critical factor for success, determining 90% of the results. As companies navigate this complex environment, data and AI sovereignty is resonating strongly with executives, influencing 25% of strategic decisions and appealing to 81% of leaders in various sectors.
As businesses continue to make strides towards gaining independence over their data and AI, the trajectory will continue to increase. Currently, almost a quarter (23%) of global enterprises identify data and AI sovereignty as a purpose-first priority. Projections indicate that this figure will climb to 68% in just three years. The market for data and AI sovereignty is on track to exceed $1 trillion by 2027. That is why change is urgently needed here.
The Drive for Self-Sufficiency
The call for data and AI sovereignty is perhaps most vividly showcased by these industry leaders. It’s no coincidence that all of these leaders are leading right now. An unprecedented 100% are constructing and completely owning their own data and AI platforms versus renting solutions from third-party vendors. This shift reflects a broader recognition that true control over data and AI resources is fundamental to fostering innovation and growth.
Alongside full ownership, 42% of leaders are taking a hybrid approach to reach their sovereignty aspirations. Through hybridizing on-premise solutions with the cloud, these enterprises optimize flexibility meeting compliance and security requirements.
As Nancy Hensley, Chief Product Officer of EDB, noted during her talk, self-sufficiency will be key to thriving in this new era.
“You need to be your own sovereign AI and data factory, and you need to be the platform and not rely on others.” – Nancy Hensley
Organizations from every sector, especially those that are as heavily regulated as banking, finance, healthcare and telecommunications, are acutely aware of this. They understand how imperatively they need to tame their data ecosystems.
The Competitive Edge of Data Sovereignty
Attaining true data and AI sovereignty creates concrete advantages for businesses. For those organizations that have built their own platforms, the benefits are immensely rewarding. That is because they are realizing ROI figures five times higher than their counterparts who have yet to make the switch. This large margin of success shows the true competitive advantage that autonomy from data control grants.
Moreover, leaders in data sovereignty are developing twice as many Agentic and Generative AI applications compared to the remaining 87% of enterprises. This speed in application development highlights the ability sovereign platforms have to increase innovation and agility to cover emerging market needs.
The growing dependence on open-source alternatives only furthers to paint the picture of where this data sovereignty trend is leading. More than 80% of enterprises are focused on open-source data management environments, realizing their competitive edge by delivering agility to all applications. Each new generation is met with an opportunity to create new paradigms to succeed, said Hensley.
“Every generational shift builds a new paradigm for success, often with some existing components, but with a different way of thinking.” – Nancy Hensley
This shift in mentality is having a profound impact on how businesses are approaching their data strategy in the coming years.
EDB Postgres AI: A Sovereign Solution
EDB Postgres AI has emerged as a trailblazer in the domain of data sovereignty. It’s what makes this platform the first sovereign-by-design, open-source data and AI platform. It does a brilliant job of bringing Postgres and AI together inside a single instance. This groundbreaking solution empowers enterprises to leverage the value of their data assets, all while ensuring that they stay completely in control of their AI capabilities.
In fact, today one-third of all organizations around the globe have chosen Postgres as their favorite database. They’re using it to create breakthrough Agentic and Generative AI applications. This trend highlights a developing bias toward ecosystems with the ability to provide enhanced performance as well as sovereignty.
As organizations increasingly prioritize data sovereignty, they must adopt an enterprise-grade approach to ensure compliance with regulatory frameworks while addressing cybersecurity challenges. Moving toward a more self-sufficient state of data management is critical. It’s an essential component for thriving in our digital economy.
