European Organisations Are Accelerating AI Despite Data Blind Spots

Questions around data sovereignty have become increasingly prominent as organisations expand their use of AI and cloud-based services.

According to Veeam’s research, 99% of enterprise decision-makers across EMEA consider data sovereignty critical, while 44% cite reducing the risk of data breaches as the primary motivation, and 43% identify greater control over data as a key objective.

The same research found that 72.5% of organisations are prioritising AI adoption ahead of sovereignty initiatives.

The findings suggest that many organisations are accelerating AI deployment while still working to understand and govern the data environments supporting those systems.

Organisations Recognise the Importance of Sovereignty

The research suggests there is little disagreement about the importance of data governance.

Most organisations recognise the importance of data sovereignty and how data location, access, and control impact compliance, security, and resilience.

Reducing breach risk remains a primary concern, while maintaining greater control over data continues to be viewed as an important governance objective.

These findings point towards a mature understanding of the importance of governance. The challenge appears to be maintaining the same level of visibility and control as data environments become more distributed and AI adoption accelerates.

Visibility is Emerging as a Practical Challenge

One of the most notable findings in the study concerns visibility.

While 72.5% of organisations are prioritising AI adoption ahead of sovereignty initiatives, the research also found that 68% are prioritising broader digital transformation programmes over stronger data controls.

In addition, 40% identify AI and analytics data as their largest visibility blind spot. This suggests that governance challenges are becoming increasingly operational.

Many organisations are introducing AI capabilities while simultaneously reporting uncertainty around where data resides, how it moves across environments, and which systems have access to it.

“Organisations across EMEA are accelerating AI adoption, recognising its potential to drive innovation and growth,” said Tim Pfaelzer, General Manager and Senior Vice President, EMEA at Veeam. “But many now face a critical trade-off: move quickly with AI without fully understanding, protecting and managing their data, or slow progress to meet sovereignty requirements.”

Different Regions Are Responding in Different Ways

While the overall trend is consistent, regional priorities vary.

In the United Kingdom, 58% of respondents identify preventing data breaches as the primary driver of sovereignty efforts, while 45% identify AI and analytics data as their largest visibility gap. This represents the highest level of concern around AI-related data visibility among the markets surveyed.

Germany appears to be taking the most aggressive AI-first approach, with 82% prioritising AI development over establishing stronger data controls.

In France, concerns are more closely linked to protecting intellectual property and sensitive information, with 46% identifying this as the primary motivation behind sovereignty efforts.

The Middle East and Africa present a different picture. Around 60% of organisations report having fully operationalised sovereignty strategies, making the region the least likely to sacrifice governance for AI speed. Yet visibility challenges remain, with 38% identifying third-party ecosystems as a significant blind spot.

The priorities differ, but the underlying theme remains consistent. Organisations are working to maintain visibility and control across increasingly complex data environments.

AI is Exposing Existing Governance Gaps

One of the more interesting aspects of the research is that AI may be drawing attention to governance issues that already existed.

The study found that:

• 38% report visibility gaps in public cloud environments
• 34% struggle with cross-border data flows
• 33% identify third-party vendors as a significant blind spot
• 32% report major challenges with Shadow IT

These issues are not new.

However, they become more significant when AI systems depend on large volumes of distributed data spanning cloud platforms, third-party services and multiple jurisdictions.

Andre Troskie, EMEA Field CISO at Veeam, argues that operational visibility is becoming increasingly important:

“AI doesn’t have to slow the business down, but it does demand operational clarity. If you can’t see where data is going, who can access it, and what AI systems are doing with it, you don’t have control.”

The findings suggest that many governance challenges associated with AI begin with understanding the underlying data environment.

Governance is Becoming More Operational

The report has arrived at a time when governance expectations continue to evolve.

Many organisations report strong confidence in established regulatory frameworks such as GDPR. That confidence often declines when newer frameworks, including the EU AI Act, enter the discussion.

Recent developments around AI accountability, transparency requirements and data governance obligations point in the same direction. As AI becomes more embedded within enterprise operations, organisations are being asked not only to deploy it effectively but also to understand and govern the data that supports it.

The research suggests that while organisations recognise the importance of data sovereignty, many continue to report significant visibility gaps across cloud environments, third-party ecosystems and AI-related data. As AI adoption accelerates, understanding where data resides, how it moves, and how it is governed remains an important part of maintaining control and oversight.