Digital sovereignty (having full control over technology, data, and systems) is becoming more important for businesses, especially as AI and global data systems continue to grow. However, according to tech giant IBM (IBM), there is a clear gap between what companies want to achieve and what they can actually control. While 93% of executives say sovereignty should be part of their strategy, far fewer have full visibility into their own systems. For example, less than one-third know exactly which AI tools they are using, and only 18% keep a complete, up-to-date list.
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New trading tool for IBM bullsAs AI usage continues to expand, the problem is getting worse. Many companies are now using more AI tools than they can properly track, with nearly 70% of leaders saying they lack full visibility into how these systems work. And this is expected to get even worse, as companies believe they will be using almost four times as many AI systems by 2030. As a result, businesses that don’t have strong oversight are seeing weaker results, including lower productivity and less profit from their AI investments compared to those that have better control.
Unsurprisingly, IBM says that companies need to change how they approach digital sovereignty. Instead of treating it as just a rule to follow, they should build it directly into their systems from the start, which is known as “sovereignty-by-design.” This means having clear control over where their technology runs, how their data is used, and who is making decisions. In fact, without this level of control, digital sovereignty remains more of an idea than a reality, especially as AI continues to grow and shape how businesses operate.
Is IBM a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on 12 Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $298.44 per share implies 28.5% upside potential.
