Accenture: Sovereign AI interest surges within Canada

Canadian organisations are showing increased interest in sovereign artificial intelligence (AI), with new survey data from Accenture indicating rising concerns over geopolitical uncertainty and the need for data control.

While only 5 per cent of companies currently use sovereign AI platforms, 87 per cent of business leaders believe such systems could deliver moderate or significant value to their operations or sectors.

Growing ownership concerns

The research suggests that national security, control over sensitive data and infrastructure, and compliance with local regulations are key drivers of consideration of sovereign AI. Sectors such as health, government, and public service are most likely to pursue these systems, with 70 per cent of organisations in these fields expressing intent to adopt sovereign AI. The banking sector follows closely at 68 per cent, and utilities at 66 per cent.

"Canada is facing an AI paradox of its own. Canadian leaders recognize the importance of accelerating AI adoption to drive innovation and economic growth. said David Morgenstern, President, Accenture Canada. "However, since most AI technologies are developed outside the country, there's a risk it could compromise national security and competitiveness. A sovereign AI strategy can help address this challenge by enabling Canadian organizations to safeguard critical operations while maintaining their innovative edge."

Hybrid ecosystem approach

The report reveals that, on average, 34 per cent of AI initiatives in Canadian companies require a sovereign approach. This is due to complex regulatory frameworks and the sensitivity of some data sets. Capital markets and public services report even higher levels of need for sovereign solutions.

Many organisations are seeking to balance data control with continued access to innovation from global providers. 73 per cent of survey respondents acknowledged the need to engage with non-Canadian technology firms to remain competitive. Additionally, 58 per cent are considering adopting sovereign solutions from both Canadian and international providers, reflecting a hybrid approach.

"In the course of doing this research it was important to note that a sovereign AI approach is not about isolationism," said Dave Wood, Global Sovereign AI Lead, Accenture. "The goal is to make technology choices according to the degree of control an enterprise wants to exercise over data, AI infrastructure and models, while benefiting from the scale, service breadth and pace of innovation that some non-local providers offer. These choices are decided by the use case and national priorities. Canadian businesses and government agencies are in the process of determining which cases need only local data residency, while others, in defense for instance, call for full sovereignty over the different AI components, local data, infrastructure and model, advanced encryption, or even air-gapped systems when necessary."

Policy and leadership

Currently, the primary motivation for adopting sovereign AI remains the need to control critical data and models, cited as the top concern by 39 per cent of Canadian organisations. Calls for greater government support are rising, with more than half of respondents supporting regulatory or public investment measures. Interest is also growing in using locally developed or adapted AI models, with 55 per cent indicating this is important to their AI strategies.