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How a hybrid approach to AI sovereignty is shaping EU digital policy

IAPP Westin Fellow, Will Simpson, AIGP, CIPP/US examines EU efforts to establish AI sovereignty through open, federated and cooperative means.

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Contributors:

William Simpson

AIGP, CIPP/US

Westin Fellow

IAPP

In response to the Draghi report, weakened transatlantic cooperation and an AI arms race between the U.S. and China, the EU has been working fastidiously to bolster its technological independence. As a recent study prepared for the European Parliament concluded, "the EU's reliance on non-European providers for foundational digital infrastructure … makes it inherently vulnerable to geopolitically driven coercion," meaning that political whims could cause unexpected restrictions and disruptions to essential services across the EU. 

Efforts focused on artificial intelligence sovereignty are central to this aim. The concept of sovereignty in this context can refer to the capacity of a nation or region to control the use of its own data, software, hardware and infrastructure to align AI functionality with domestic laws and interests. Given global interdependence and an international AI supply chain, some experts argue that a hybrid model — where sovereign AI is deployed for critical applications like defense or health care, but not necessarily for commercial or research purposes — is most viable. 

The EU is already embracing this hybrid model, pairing regulations such as the AI Act — comprehensive binding rules that reflect sovereign European values and limit reliance on external AI governance models — with more interdependent and non-proprietary mechanisms — narrow, open-source models, international partnerships and federated infrastructure. As such, the EU is pioneering a pragmatic and integrated form of AI sovereignty that governance professionals should watch closely. This model not only diverges from those advanced by the U.S. and China, but it may also prove applicable to a variety of emerging national contexts. 

Existing regulatory levers

Contributors:

William Simpson

AIGP, CIPP/US

Westin Fellow

IAPP

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