AI, data sovereignty & compliance: Navigating the new enterprise reality
In my recent travels across Europe, India, and the United Arab Emirates, a recurring theme emerged in conversations with enterprise leaders: the imperative to harness data to drive intelligent workflows and enable agentic AI—AI systems capable of autonomous decision-making.
Alongside this enthusiasm lies a pervasive concern: data sovereignty—specifically, where data resides, how it’s governed, and who ultimately controls it. This has been exacerbated by the current geopolitical environment, and it has organisations grappling with questions about where their data resides and how it’s protected.
Facilitating agentic AI and data compliance
Agentic AI promises to revolutionise industries by automating complex processes and delivering personalised experiences. Yet the efficacy of these systems hinges on access to vast amounts of data, often necessitating cross-border data flows.
This requirement collides with data privacy concerns, especially within the European Union (EU), where the General Data Protection Regulation (GDPR) imposes stringent controls on data transfers to ensure personal data protection.
The GDPR does not mandate data localisation or that data be stored or processed in the EU exclusively, but it does require that personal data transfers outside the EU occur via a compliant transfer mechanism. This has led to heightened scrutiny over data storage and processing locations, influencing organisations to store data containing personal information within the EU.
Recent legal developments have underscored the importance of compliance. In a landmark case, the EU General Court fined the European Commission for breaching its own data protection laws by transferring personal data to the United States without proper safeguards, highlighting the critical nature of adhering to GDPR provisions.
Reducing reliance on offshore data infrastructure
Beyond regulatory compliance, there’s growing apprehension about reliance on offshore-owned data infrastructure, even when such infrastructure is physically located within a country. EU policymakers are seeking to reduce dependence on foreign cloud providers to advance digital independence and economic goals.
This sentiment is particularly pronounced in sectors such as financial services and healthcare, where data sensitivity is paramount. Organisations in these industries are wary of foreign governments potentially accessing their data, which could compromise client confidentiality and violate regulatory obligations.
At ServiceNow, we recognise these concerns and are committed to providing solutions that respect data sovereignty requirements while enabling organisations to use the full potential of agentic AI. Our approach is anchored in being an agnostic vendor with an ever-expanding network of partnerships, designed to meet customers where they are.
Increasing data trust, choice, and control
To address EU data sovereignty requirements, we introduced the ServiceNow Protected Platform for the EU. This platform reduces data transfers outside the EU, thereby meeting compliance with GDPR requirements.
Customers can opt in to these additional protections to help ensure their data remains within EU boundaries—with limited exceptions that are critical or under the customer's direct control.
Demonstrating our commitment to the region, ServiceNow has been investing heavily in EU services since 2021, providing customers with greater trust, choice, and control over their data.
We’ve also fostered partnerships with global systems integrators to develop verticalised solutions tailored to the unique needs of various industries. These collaborations use existing domain knowledge to address ongoing challenges, enabling enterprises to upgrade their business processes while staying in compliance with local data sovereignty laws.
Keeping sensitive data safe
Understanding the complexities in sectors such as financial services and healthcare, ServiceNow provides specialised guidance to handle sensitive data in countries with strict data sovereignty rules.
This includes implementing additional controls to help ensure medical information and financial data management meet compliance with local laws, safeguarding sensitive customer data stored on ServiceNow Platform instances.
Our philosophy centers on balancing global innovation with local compliance. By offering solutions that are both globally integrated and locally compliant, we equip organisations to harness the benefits of agentic AI without compromising their data. This approach helps ensure enterprises can innovate and transform while respecting the legal and ethical considerations of the regions in which they operate.
For example, under the Digital Operational Resilience Act (DORA), financial institutions that operate within the EU are encouraged to share cyber threat information and intelligence to mitigate risk and disruption. However, they must comply with data protection rules outlined in the GDPR.
As organisations navigate the complexities of data sovereignty in the age of agentic AI, it’s imperative to adopt strategies that honour both the technological potential of AI and the regulatory frameworks designed to protect personal data.
ServiceNow remains committed to supporting our customers through this journey. We provide a platform and partnerships that align with customers’ data requirements and enable them to thrive in a rapidly evolving digital landscape.
By understanding and addressing the nuances of data sovereignty, we can collectively unlock the transformative power of AI while safeguarding the rights and interests of individuals and organisations worldwide.
Find out more about how ServiceNow helps organisations put agentic AI to work.