AI sovereignty

By Daniel Rohrhirsch and Patrick Ruthardt

In an era when artificial intelligence (AI) is revolutionizing industrial operations, Europe finds itself at a critical crossroads. With more than 80% of digital products, services and intellectual property (IP) used in the EU provided by non-European companies, the continent's industrial sector is increasingly vulnerable. As global competitors – particularly the US and China – ramp up investments in AI, Europe's industrial competitiveness and independence is at risk. Europe developed just three major AI models in 2024 – compared to 40 in the US and 15 in China. Find more insights on how the European industrials sector can strategically approach AI and use it as a competetive advantage in our report, prepared by Roland Berger in collaboration with Aleph Alpha.

The stakes are high. AI is not merely a tool; it is the backbone of future industrial value creation. As processes become more data-driven, European companies must assert control over the AI systems that drive their operations in the future. This is where the concept of AI sovereignty comes into play.

AI sovereignty is a necessity, not a luxury

AI sovereignty is about more than just technological independence; it is about maintaining control over proprietary data, ensuring compliance with stringent European regulations, and fostering innovation that aligns with European industrial values. The EU AI Act, which is set to be fully implemented by 2026, underscores the importance of this sovereignty by establishing strict requirements for high-risk AI systems, particularly in sectors such as manufacturing, energy , and healthcare .

To navigate this complex landscape, Roland Berger and Aleph Alpha are committed to supporting European industrial leaders in identifying everything from first AI use cases to scaling sovereign AI across the organization for measurable impact. Our joint study outlines a comprehensive playbook for achieving AI sovereignty, emphasizing the need for trustworthy, explainable, and domain-specific AI solutions that meet local regulatory standards.

Key insights

1. A new reality for EU industry: Geopolitical fragmentation and growing tech nationalism are reshaping the rules of industrial competition. Europe must transition from being a passive adopter of technology to an active shaper of its digital industrial future. Sovereignty over AI systems is essential for maintaining competitive advantages in a rapidly evolving market.
2. Europe’s AI playbook: The foundation for sovereignty rests on four pillars: trust by design, control over data and infrastructure, domain-specific tuning, and modular integration with legacy systems. These principles enable differentiated, auditable AI aligned with European values and regulation.
3. From design to factory floor: AI can unlock significant performance gains across all industrial operations, from requirements engineering to testing and validation. By addressing the intertwined challenges of escalating speed and complexity, AI solutions can streamline operations and improve time-to-market.
4. Ensuring operable systems: A layered reference architecture translates sovereignty into system capabilities: transparent models and data, hybrid deployment, modular governance, and built-in regulatory compliance. This makes AI systems operable in even the most sensitive industrial contexts.
5. Pilots prove impact: Successful companies align AI use cases with real-world business problems. Case studies show how GenAI-powered assistants drive R&D acceleration, predictive maintenance, and KPI transparency – with measurable gains in efficiency, uptime and compliance readiness.

Recommendations for industrial leaders

To unlock the full potential of sovereign AI, industrial leaders should:

• Define clear governance, audit, and control requirements
• Prioritize use cases with tangible operational impact
• Integrate AI into OT/IT landscapes without vendor lock-in
• Embed compliance with the EU AI Act from day one
• Partner with experts combining domain knowledge and implementation depth

As Europe stands on the brink of an AI-driven industrial revolution, the imperative for AI sovereignty has never been clearer. By reclaiming control over their technological destinies, European companies can not only secure their competitive edge but also pave the way for sustainable industrial leadership in the global arena.

For a deeper dive into these and further insights, download the full study from Roland Berger and Aleph Alpha below. Together, let’s shape the future of European industry through AI sovereignty.

We would like to thank Philipp Frey for his contribution to this study.

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