IBM: Saudi AI Sovereignty No Longer Just About Data Location

Saudi digital sovereignty is no longer only about where data is stored, but about control over infrastructure, models and operations. Shutterstock
Saudi digital sovereignty is no longer only about where data is stored, but about control over infrastructure, models and operations. Shutterstock
TT

IBM: Saudi AI Sovereignty No Longer Just About Data Location

Saudi digital sovereignty is no longer only about where data is stored, but about control over infrastructure, models and operations. Shutterstock
Saudi digital sovereignty is no longer only about where data is stored, but about control over infrastructure, models and operations. Shutterstock

Digital sovereignty in Saudi Arabia is no longer just about where data is stored. It is now about who controls the infrastructure, models, operations, keys, and digital supply chains when conditions change.

That question dominated an IBM roundtable on digital sovereignty in the Kingdom, as Saudi Arabia accelerates the digital agenda of Vision 2030 and raises its ambitions in artificial intelligence, cloud infrastructure, operational resilience, and governance.

A gap between awareness and readiness

IBM says Saudi market findings show that 90% of Saudi executives believe AI sovereignty should be part of their business strategy in 2026. But the discussion pointed to a much lower level of actual readiness, with participants saying only “two to three out of every 10” clients in the Kingdom are adequately prepared.

Ayman AlRashed, IBM’s regional vice president in Saudi Arabia, said the debate is no longer theoretical or something to postpone. It is “a discussion happening today,” he said.

The gap, he said, is not about awareness. It is about the distance between believing sovereignty belongs in strategy and having the ability to execute it. Many organizations, he added, still approach sovereignty in traditional terms, asking “where is the data?” and “where is the computing?” even as the issue has become far wider.

Ayman AlRashed, IBM’s regional vice president in Saudi Arabia (IBM)

A Saudi study by the IBM Institute for Business Value found that 63% of Saudi leaders are concerned about reliance on specific regions for computing resources, above the global average. Another 85% believe geopolitical and economic issues threaten technology investments.

At the same time, 73% of Saudi leaders believe that geopolitical volatility could create new business opportunities in 2026 if organizations adapt.

Sovereignty is not just location

During the session, attended by Asharq Al-Awsat, Sabine Holl, IBM’s vice president of technical sales and chief technology officer for the Middle East and Africa, said sovereignty has moved from a regulatory demand to a strategic priority.

Holl said the debate began with data sovereignty, whether data was located inside or outside the country. But recent events, including data center outages and geopolitical tensions, have shown that location alone does not guarantee control.

Digital sovereignty, she said, is now tied to control over data, infrastructure and technology development.

IBM divides the concept into four pillars: operational sovereignty, data sovereignty, technology sovereignty and AI sovereignty. In that sense, sovereignty is no longer merely compliance with local data-residency rules. It is the continuing ability to know who can access systems, who manages the environment, where models run and how an organization can prove compliance when needed.

Holl put it plainly: Sovereignty is not just about location.

The question, she said, is not only whether data is stored in a local data center. It is who can control it, under which identity it can be decrypted and whether the organization has a recovery and operating plan if a regional outage or sudden crisis hits.

IBM says Saudi market findings show that 90% of Saudi executives believe AI sovereignty should be part of their business strategy in 2026. Shutterstock

AI complicates the equation

AI makes the issue harder. Models and agents do not simply store or read data. They can access multiple sources, interpret information, suggest decisions or take action inside an organization’s systems.

That changes the sovereignty question. Does an organization control only where its data sits, or does it also control what AI does with that data?

That explains IBM’s focus on what it calls a new operating model for AI. The company says organizations advancing in AI are not merely deploying more tools. They are redesigning how they work. IBM says the model rests on four connected systems: agents, data, automation and hybrid.

In this context, IBM announced the next generation of Watsonx Orchestrate to coordinate and manage AI agents across different environments, along with capabilities linked to real-time data through Confluent, watsonx.data, IBM Concert for intelligent operations and IBM Sovereign Core for operational sovereignty.

During the session, Asharq Al-Awsat asked whether sovereignty becomes harder when agents enter enterprise workflows, because data is no longer only stored, but also used, interpreted and acted upon.

Holl said organizations now face a reality in which agents are spreading “everywhere,” inside their own environments and on other platforms, making “supervision” and auditability essential. She said part of IBM’s operating model includes what she described as an “agent control layer” to manage and monitor those agents.

From cloud to operational sovereignty

IBM sees a hybrid cloud strategy as central to building sovereignty.

Holl said cloud changed how sovereignty is viewed, especially in the Middle East and Africa, where laws and requirements on data access and use emerged early. That helped shape IBM’s hybrid cloud strategy, she said, so that the benefits of cloud are not limited to public environments, but can also apply to private clouds and on-premises systems.

The “promise of cloud,” built on the idea that everything would move to the cloud, has not fully materialized, Holl said. Many organizations still operate across hybrid and multi-cloud environments without sufficient transparency or clear audit and control capabilities.

If an organization cannot answer “at the push of a button” where systems are running, who controls them and whether they comply with requirements, then it is not truly sovereign, she said.

IBM calls this “sovereignty by design.”

Holl said an existing environment cannot simply be patched later to become sovereign. She compared it to a small boat on a lake, saying it cannot simply be repaired into a ship capable of crossing an ocean and facing a storm.

In practice, that means sovereignty must be built into the architecture from the start, through portability, choice, open platforms, recovery plans and control over keys and identities.

IBM says human skills are the currency of the AI economy. Shutterstock

Turning sovereignty into operations

IBM says IBM Sovereign Core is designed to operationalize and verify digital sovereignty, rather than just a written policy.

The company describes it as a platform that helps governments, organizations and service providers build AI-ready sovereign environments, with the ability to prove control and compliance across hybrid settings.

Dinesh Nirmal, senior vice president, products, software at IBM, said AI has made sovereignty “a runtime requirement, not a policy statement.”

AlRashed said that as AI becomes part of institutional and national strategies, organizations need to innovate “without compromising operational authority, trust or regulatory requirements.”

The platform includes a customer-managed control layer, identity services, encryption, data within sovereign boundaries, continuous compliance monitoring, automated audit evidence, prebuilt regulatory frameworks and controlled deployment of AI models, inference and agents within defined sovereign limits.

It also relies on open technologies, including Red Hat OpenShift and Red Hat AI, and supports a partner ecosystem that includes AMD, Dell, Mistral, MongoDB and Palo Alto Networks.

Holl said the point is not that every organization must build a local server or chip. It is that organizations must be able to choose and move between components and environments when conditions change.

Shortages of graphics processing units, memory and chips could become a sovereignty risk, she said, if an organization is locked into one supplier or an architecture it cannot replace.

Resilience is part of sovereignty

A key theme in the discussion was that sovereignty cannot be separated from operational resilience. An organization that cannot recover from an outage, cyberattack or geopolitical crisis does not, in practice, have the control it believes it has.

Holl said some backup and disaster recovery strategies failed because they were not seriously tested or treated as an operational necessity rather than a useful option.

In Saudi Arabia, the issue is gaining weight as digital transformation expands across sensitive sectors, including government, energy, finance, telecommunications and health care.

Participants said some entities, especially government bodies, are no longer just waiting for policies to be completed. They are moving practically to shift workloads to sovereign providers, or to ensure that those managing environments are located inside the Kingdom.

Sovereignty and human skills

The discussion was not limited to technology. AlRashed linked digital sovereignty to people, saying AI cannot deliver value without skills and trust in systems.

“Human skills are the currency of the AI economy,” he said. Some organizations, he added, deploy AI but fail to achieve the expected value because users lack the confidence or ability to benefit from it.

That adds another layer to the Saudi debate. Sovereignty is not only about who owns the data center or cloud platform. It is also about who operates it, who understands the risks, who can prove compliance and who can change course when rules, markets or threats shift.

In IBM’s 2026 trends report, 88% of Saudi executives said agentic AI helps them make better, faster decisions during disruption.

But that optimism creates a parallel challenge. The more agents can support decisions or carry out tasks, the greater the need for clear governance, auditing, lifecycle management for models and agents and the ability to stop or adjust what is not working as required.

A Saudi model taking shape

Saudi Arabia appears to occupy a distinct place in this debate. Holl described it as an example of a market building local data centers and working with global cloud providers to bring technology into the country, allowing innovation within local regulatory frameworks.

At the same time, the figures show that concern about external dependence on computing, chips and global providers is greater than the global average.

The debate, then, is not about choosing between full isolation and full openness. It is about building a model that balances access to global innovation with local control, the ability to prove compliance and the operation of AI within clear boundaries.

In this context, digital sovereignty becomes part of the operating architecture of the digital economy, not just a legal clause or regulatory requirement.

As AI moves from pilots to operations, and from models to agents, the question raised by the session becomes more urgent for Saudi organizations: Do they merely have data inside their borders, or do they have full control over what happens to that data, who uses it, how models and agents operate on it and what happens when conditions change?



Trump Confirms Meeting with Anthropic’s Amodei, Repeats Dismissal of AI Fears

Anthropic CEO Dario Amodei appears by video during a UN Security Council meeting on artificial intelligence during the 81st United Nations General Assembly at UN headquarters in New York on September 23, 2026. (AFP)
Anthropic CEO Dario Amodei appears by video during a UN Security Council meeting on artificial intelligence during the 81st United Nations General Assembly at UN headquarters in New York on September 23, 2026. (AFP)
TT

Trump Confirms Meeting with Anthropic’s Amodei, Repeats Dismissal of AI Fears

Anthropic CEO Dario Amodei appears by video during a UN Security Council meeting on artificial intelligence during the 81st United Nations General Assembly at UN headquarters in New York on September 23, 2026. (AFP)
Anthropic CEO Dario Amodei appears by video during a UN Security Council meeting on artificial intelligence during the 81st United Nations General Assembly at UN headquarters in New York on September 23, 2026. (AFP)

US President Donald Trump confirmed that he plans to have a dinner meeting with Anthropic CEO Dario Amodei on Sunday night, but reaffirmed his stance against slowing the pace of AI development.

Trump also reiterated his belief that new regulations would open the door for China to outpace the United States in AI advancement. Although he acknowledged Amodei's concern that going too fast on artificial intelligence could expand risks, Trump said it's more important for the United States to maintain a technological edge over China.

"We're about maybe a year and a half up on China," Trump told Fox ‌News while attending ‌the Presidents Cup golf tournament in Illinois. "We're leading, and we're building ‌tremendous, trillions ⁠of dollars' worth ⁠of places. And why should we give that up?"

Trump, confirming earlier reporting by Axios and Reuters, told Fox News that he would have dinner with Amodei on Sunday night. The meeting comes as the CEOs of Anthropic rivals have called for slowing development of increasingly capable AI systems. These include OpenAI, Google’s DeepMind, Microsoft and xAI.

A groundswell has risen in favor of federal intervention after OpenAI said in July that an autonomous AI agent went rogue during a security test and hacked ⁠into another company.

Incidents of rogue AI agents are not a cause ‌for alarm, Trump told Fox News. "I don't worry about ‌it," he said, adding that he remains confident in the technology and its potential.

Amodei is not the ‌only major tech figure trying to bend Trump's ear on AI regulation. In an ‌interview that aired earlier on Sunday on NBC's "Meet the Press," Microsoft co-founder Bill Gates said he would like to meet with Trump to discuss AI.

"I hope that, given my life's work in the field, my saying how unique and different this is and how concerned I am will add to what he's ‌hearing from other people," Gates said, echoing calls by Amodei and others for new AI regulations.

"You need law enforcement and the politicians ⁠to get into the ⁠discussion about what safeguards and monitoring look like," Gates said in a taped interview. "And that has to be a required thing."

Trump has previously described the chorus of AI concerns as a "hoax." Gates argued that safeguards would not dramatically hinder the industry, and that the risks of not implementing them are real.

"It's not a hoax at all," Gates told NBC.

Warnings about AI's risks are not new. But they took on added urgency this month after researchers in leading AI labs attached both a timeline and a probability to those concerns.

Former Anthropic researcher Jacob Coxon warned that AI could kill us all by the end of the decade, prompting US lawmakers to call for new rules to govern the technology.

Evan Hubinger, Anthropic's alignment science lead, echoed Coxon's warning, saying there was a more than 10% chance of such an event within the next decade.


OpenAI, Anthropic CEOs Called to Appear at Australian AI Probe

OpenAI CEO Sam Altman attends a state dinner hosted by US President Donald Trump and first lady Melania Trump for Chinese President Xi Jinping and his wife, Peng Liyuan, at the White House in Washington, D.C., US, September 24, 2026. REUTERS/Evelyn Hockstein
OpenAI CEO Sam Altman attends a state dinner hosted by US President Donald Trump and first lady Melania Trump for Chinese President Xi Jinping and his wife, Peng Liyuan, at the White House in Washington, D.C., US, September 24, 2026. REUTERS/Evelyn Hockstein
TT

OpenAI, Anthropic CEOs Called to Appear at Australian AI Probe

OpenAI CEO Sam Altman attends a state dinner hosted by US President Donald Trump and first lady Melania Trump for Chinese President Xi Jinping and his wife, Peng Liyuan, at the White House in Washington, D.C., US, September 24, 2026. REUTERS/Evelyn Hockstein
OpenAI CEO Sam Altman attends a state dinner hosted by US President Donald Trump and first lady Melania Trump for Chinese President Xi Jinping and his wife, Peng Liyuan, at the White House in Washington, D.C., US, September 24, 2026. REUTERS/Evelyn Hockstein

The CEOs of ‌OpenAI and Anthropic have been called to appear at an Australian Senate inquiry on AI, the head of the probe said on Sunday, days after the revelation that a rogue OpenAI bot had hacked the country's health-system database.

The Medicare breach, condemned by Prime Minister Anthony Albanese, is one of the highest-profile incidents of AI agents accessing external systems outside the US, said Reuters.

OpenAI's Sam Altman and Anthropic's Dario Amodei have been sent written requests ‌to appear at ‌the inquiry, which is to ‌hold public ⁠hearings in the capital ⁠Canberra on Thursday, said a spokesperson for Senator Sarah Hanson-Young of the Australian Greens party, who chairs the probe.

OpenAI and Anthropic did not immediately respond to requests for comment outside business hours.

The OpenAI agent's incursion on one of the country's most used government agencies ⁠may prompt Albanese's Labor government to toughen ‌AI-specific laws it is ‌readying for next year, adding pressure to Australia-US relations already tested ‌by Canberra's ban on social media for teens, ‌tech policy experts say.

The Senate inquiry is examining the potential impacts of AI and data centers on Australian communities, industries, water and energy. It is one of several state ‌and federal probes into AI.

"There are serious questions for Sam Altman to answer about the ⁠OpenAI hack ⁠of Australian government websites," Hanson-Young said in a statement. Altman and Amodei "must front up, face the Senate's questions and have an honest conversation about what effective, lasting regulation of this industry should look like", she said.

Albanese, who revealed the June breach of Medicare on Thursday, called it "unacceptable", saying he had voiced "extreme concern" to Altman.

OpenAI says it only learned of the breach — one of at least four of Australian government websites — in August. It says the incident was not intentional and did not compromise any private information.


AI Startup Urges Optimism from Europe despite Safety Fears

'The main thing that can wipe out humanity is stupidity,' says Robin Rombach, CEO of AI startup Black Forest Labs. Silas Stein / AFP
'The main thing that can wipe out humanity is stupidity,' says Robin Rombach, CEO of AI startup Black Forest Labs. Silas Stein / AFP
TT

AI Startup Urges Optimism from Europe despite Safety Fears

'The main thing that can wipe out humanity is stupidity,' says Robin Rombach, CEO of AI startup Black Forest Labs. Silas Stein / AFP
'The main thing that can wipe out humanity is stupidity,' says Robin Rombach, CEO of AI startup Black Forest Labs. Silas Stein / AFP

Europe needs to view artificial intelligence with more optimism -- despite growing warnings about its dangers -- or risk falling further behind, the head of a leading European AI start-up warned.

"I think the mindset in Europe needs to shift to one of optimism and to one of opportunity, and not to one of risk and fear," Robin Rombach, CEO of German AI image generation specialist Black Forest Labs, told AFP.

Europe lags behind the United States and China when it comes to cutting-edge AI models. Policymakers and firms have been scrambling to find ways to make up lost ground.

But the debate has shifted to safety in recent weeks, after security lapses sparked calls from some industry leaders for development of the technology to be slowed down.

Based in the medieval German city of Freiburg, Rombach's company -- which takes its name from the nearby Black Forest -- has emerged as a prominent developer of AI image-generation models.

The startup, valued at around $3.25 billion, recently hit the headlines when it announced US director Martin Scorsese as an advisor, prompting an angry response from some in Hollywood concerned about AI taking production jobs.

Rombach, 33, helped develop latent diffusion, a breakthrough that underpins many of today's AI image-generation systems.

This propelled Rombach and a group of fellow computer scientists to found the AI lab in 2024. With just over 100 staff, its FLUX models generate still and moving images from text, and the company is now also expanding into physical AI.

Its latest model has been tested at carmaker Audi as part of a project aimed at enabling robots to perform production-line tasks.

Despite its roots in Freiburg -- Rombach comes from the area -- the firm's ties to the United States and its tech scene are also strong.

The company has a second headquarters in San Francisco and secured early backing from Silicon Valley venture capital firm Andreessen Horowitz.

- 'Stupidity' is biggest risk -

Rombach said that when Black Forest Labs was founded, there was no "real startup ecosystem" in Europe, particularly for "frontier deep tech".

"If you want to build a frontier model in a very competitive space, you need to do this quickly."

"Certain ingredients" are needed for success, such as a lot of capital and computing power, he added.

As well as Black Forest Labs, Europe has other competitive AI companies, including France's Mistral, but is still seen as trailing US firms such as OpenAI and Anthropic and Chinese labs such as DeepSeek.

Zach Meyers of CERRE, a Brussels-based think tank, echoed some of Rombach's concerns, saying the "biggest barrier" to AI growth and innovation in Europe was access to capital.

Most European companies rely on financing from banks, which are traditionally more cautious than venture capital investors about backing businesses that may take years to become profitable, said Meyers, an expert in EU digital policy.

"That is not how technology markets work, particularly with a really nascent technology like AI," he told AFP.

Safety concerns related to AI have escalated after incidents of the technology getting around controls during tests, sparking dire warnings from some about the threats that it poses.

Rombach emphasized his company's focus on "open-weight" AI models, some of which can be downloaded by researchers and developers, "increases transparency, increases safety".

He called for an open approach to AI development, warning it would be "fundamentally wrong" for such a crucial technology to be controlled by a few companies, rendering oversight more difficult.

But for Rombach, the biggest danger rests in potential human failings.

"The main thing that can wipe out humanity is stupidity," he said.