Nearly all (96%) UAE respondents report not fully understanding their AI dependencies across vendors, models, and infrastructure
A new global study by the IBM Institute for Business Value finds that as enterprises adopt AI across core business operations, many remain tied to AI systems that are difficult to replace or switch, highlighting the growing need for AI sovereignty.
Based on insights from 1,000 senior executives, The Calculus of AI Sovereignty study reveals that 88% of surveyed executives in the UAE say switching their primary AI vendor or model would be difficult if they had to do it today, highlighting the extent of AI vendor lock-in. Additionally, 74% of surveyed executives say meeting data residency and sovereignty requirements across geographies is challenging, creating complexity in moving AI systems or data across environments. These dynamics point to growing pressure on organizations to strengthen control and oversight as AI adoption and compliance requirements expand.
How AI Vendor Dependencies Leave UAE Enterprises Exposed
While the need for control is intensifying, most UAE organizations still lack the visibility required to act on it: 96% of those surveyed say they don’t fully understand their organization’s dependencies across AI vendors, models and infrastructure, limiting the ability to assess risk and plan for disruption. Surveyed leaders report an average of seven AI-related disruptions over the past two years, largely driven by vendor services, yet 84% say a seven-day vendor outage would still cause severe or critical disruption, effectively halting operations.
Respondents also cite unexpected changes across the AI ecosystem, including price increases, usage restrictions, model deprecations, and performance degradation. These findings underscore the challenges enterprises face in managing AI dependencies.
Shukri Eid, General Manager, IBM Gulf, Levant and Pakistan, said: “The UAE has created one of the world’s most ambitious environments for AI innovation. As organizations move from experimentation to enterprise-wide deployment, success will increasingly depend on their ability to retain control over their AI ecosystem. AI sovereignty enables organizations to innovate with greater confidence by reducing dependency, strengthening resilience and giving business leaders the flexibility to adapt as technology, regulation and market demands continue to evolve.”
According to the study, organizations globally that design AI systems to adapt data, models and infrastructure as conditions change – a core element of AI sovereignty – are outperforming peers:
- Analysis shows that organizations with the most advanced AI control capabilities see less AI downtime and protect 55% more operating profit from AI-driven disruptions.
- Yet, only a minority of the organizations surveyed (7%) operate at this level, signaling a widening gap between those building adaptable AI systems and those constrained by dependency.
According to IBM, 82% of surveyed UAE organizations describe their AI environments as intentionally multi-vendor.
- 80% of UAE executives said it would take at least six months to move core AI systems and applications to another vendor.
- UAE executives estimated an average of 150 days to migrate AI training and operational data to another environment.
- 78% said they would accept a 20% increase in costs to maintain multiple AI vendors if it improved strategic flexibility.
Disclaimer: This article is based on a global study commissioned by IBM and conducted by the IBM Institute for Business Value in collaboration with Oxford Economics. The survey polled 1,000 senior executives across 16 countries and 17 industries between February and April 2026. Some UAE-specific findings cited in this article are based on unpublished data provided by IBM. Readers are encouraged to review the full study for additional context, methodology, and detailed findings.
