Companies procuring AI systems often focus on data location for sovereignty, overlooking a more critical issue: ownership of the AI model itself. Current enterprise AI agreements typically allow vendors to improve their general-purpose models using customer data, creating an intelligence asset that benefits competitors. This lack of control over the AI's development poses a competitive risk, distinct from data residency concerns. Vertical AI solutions offer a potential alternative by embedding domain intelligence and ensuring that improvements made with customer data become a proprietary asset. AI
IMPACT Companies must re-evaluate AI procurement to ensure they own the intelligence derived from their data, not just control its location.
RANK_REASON The article discusses a strategic issue regarding AI ownership and control, rather than announcing a new product, research, or regulatory action.
- EU AI Act
- Federal Deposit Insurance Corporation
- Federal Reserve System
- Financial Conduct Authority
- H2O.ai
- IBM
- Office of the Comptroller of the Currency
- Palantir
- Sanjay Dhawan
- SymphonyAI
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