AI Sovereignty: why businesses must take control now
11th July 2025
Author EditorPosted on Categories Business
By Tom Webster, CEO at Sentry.
Have you or your team ever pasted client, employee or other sensitive data into ChatGPT or another AI tool to speed things up?
If you have, you might be breaching GDPR and risking your business’s reputation.
As artificial intelligence (AI) tools become part of everyday tasks for businesses of all sizes, the line between productivity and compliance is starting to blur. This is where AI Sovereignty becomes important.
What is AI Sovereignty?
AI Sovereignty means having full control over the AI systems you use. This includes controlling where your data goes, how it’s processed and stored, who owns the models, and who can access the insights. For a small business, this might sound technical or unreachable, but it’s not. It’s about making informed, safe choices about the AI tools you adopt.
Why it matters for small and medium-sized businesses
1. Protecting client data
Many popular AI tools retain and learn from the information you provide. This may include names, contract details, sensitive case notes, or other sensitive information. If that data is processed outside the UK or EU, you may be at risk of data breach under GDPR without realising it.
2. Staying in control
Free or low-cost AI tools often lack transparency about how they make decisions, where your data is processed, or how your data is used to train their models. This can lead to errors, biases, or even data leaks.
3. Avoiding business disruption
If your business relies on specific AI providers, especially ones based overseas, and they change their terms or shut down services, what’s your backup plan? AI Sovereignty puts you in control, reduces risk, and ensures you won’t be left stranded.
4. Building trust
Customers and clients want to know their data is handled responsibly. Taking steps to ensure AI use is ethical and compliant can build trust and give you a competitive edge.
The risks of doing nothing
• Fines or legal action for breaking data laws
• Loss of client trust if AI mishandles sensitive information
• Operational setbacks if a key AI tool disappears or fails
• Unwittingly giving away your intellectual property or business insights
Simple steps to get started
1. Review your AI use
What tools is your team using, even casually? Where is the data going? Ask the uncomfortable questions now.
2. Keep sensitive data out of AI Tools
Unless you know exactly how a tool processes and stores your data, don’t input anything confidential. This includes client and employee information, financial records, emails or internal documents.
3. Look for UK/EU-based providers
These are more likely to comply with GDPR and offer clearer data protection policies.
4. Use open source or on-premise tools where possible
You don’t have to be a tech company to choose safer options. Some tools can run locally or through trusted partners, keeping your data closer to home. Sentry can help you with this.
5. Write a simple AI policy
Even a short document outlining what is acceptable and what is not can help guide your team and protect your business.
The upside: safer, smarter growth
Getting smart about AI Sovereignty doesn’t mean saying no to AI. It means saying yes on your terms. Businesses that take ownership of how they use AI are better positioned to mitigate risk, grow safely, gain customer trust, and keep up with changing regulations.
Sentry is supporting businesses across Sussex in implementing their own AI. We’re deploying and training locally managed systems that understand your business and deliver better and safer results.
Final thought
Think of AI Sovereignty like insurance for your digital future. You wouldn’t leave your client files unlocked in a café, so why risk doing the digital equivalent by using AI tools without controlling the risks?
The AI genie is out of the bottle. Now is the time to shape it to your advantage, not the other way around.