Dubai, UAE, July 14, 2026 – A new global study by the IBM (NYSE: IBM) Institute for Business Value finds that as enterprises embed AI deeper into core business operations, most surveyed organizations remain locked into AI systems they cannot easily change, reinforcing the growing importance of AI sovereignty to maintain business continuity and performance. 

 Based on insights from 1,000 senior executives, The Calculus of AI Sovereignty study* reveals that 88% of surveyed executives in the UAE say switching their primary AI vendor or model would be difficult if they had to do it today, highlighting the extent of AI vendor lock-in. Additionally, 74% of surveyed executives say meeting data residency and sovereignty requirements across geographies is challenging, creating complexity in moving AI systems or data across environments. These dynamics point to growing pressure on organizations to strengthen control and oversight as AI adoption and compliance requirements expand. 

While the need for control is intensifying, most UAE organizations still lack the visibility required to act on it: 96% of those surveyed say they don’t fully understand their organization’s dependencies across AI vendors, models and infrastructure, limiting the ability to assess risk and plan for disruption. Surveyed leaders report an average of seven AI-related disruptions over the past two years, largely driven by vendor services, yet 84% say a seven-day vendor outage would still cause severe or critical disruption, effectively halting operations. 

 Respondents also cite unexpected changes across the AI ecosystem, including price increases, usage restrictions, model deprecations, and performance degradation. These findings underscore the challenges enterprises face in managing AI dependencies. 

Shukri Eid, General Manager, IBM Gulf, Levant and Pakistan, said: "The UAE has created one of the world's most ambitious environments for AI innovation. As organizations move from experimentation to enterprise-wide deployment, success will increasingly depend on their ability to retain control over their AI ecosystem. AI sovereignty enables organizations to innovate with greater confidence by reducing dependency, strengthening resilience and giving business leaders the flexibility to adapt as technology, regulation and market demands continue to evolve." 

According to the study, organizations globally that design AI systems to adapt data, models and infrastructure as conditions change – a core element of AI sovereignty – are outperforming peers: 

• Analysis shows that organizations with the most advanced AI control capabilities see less AI downtime and protect 55% more operating profit from AI-driven disruptions. 

• Yet, only  a minority of the organizations surveyed (7%) operate at this level, signaling a widening gap between those building adaptable AI systems and those constrained by dependency. 

Roughly four out of five UAE organizations (82%) describe their AI environments as intentionally multivendor, yet vendor diversity in practice appears to be driven less by deliberate strategy and more by internal and operational realities1: 

• Most organizations struggle in this area, with 80% UAE executives saying it would take at least six months to move core AI systems and applications to a different vendor. 

• Across sectors, UAE executives estimate it would take an average of 150 days to move their AI training and operational data to a different environment. 

• 78% of surveyed UAE executives say they would accept a 20% cost increase to maintain AI vendors if it improved strategic flexibility. 

The study also provides a roadmap for senior executives on how to build flexible, resilient, and sovereign AI systems. To view the full study, visit: https://ibm.biz/ai-sovereignty. 

 1 Unpublished data from the IBM Institute for Business Value The Calculus of AI Sovereignty Study (2026). 

 Study Methodology 

The IBM Institute for Business Value, in collaboration with Oxford Economics, conducted a global survey between February and April 2026 to examine how organizations structure control across the AI stack and how these choices relate to resilience, performance and operating economics. The study is based on responses from 1,000 senior executives responsible for AI, data, technology, or related enterprise capabilities across 16 countries and 17 industries. Additional analysis identified distinct AI control profiles by segmenting organizations based on how they structure control across data, models, infrastructure and applications, and assessing the relationship to resilience, performance and operating economics. 

 The IBM Institute for Business Value, IBM’s thought leadership think tank, combines global research and performance data with expertise from industry thinkers and leading academics to deliver insights that make business leaders smarter. For more world-class thought leadership, visit: www.ibm.com/ibv. To receive more insights, subscribe to the IdeaWatch newsletter: https://ibm.co/ibv-ideawatch.   

About IBM 

IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity, and service.  Visit www.ibm.com for more information.