Public Services, Enterprise Software, Regulatory · medium ·
Public sector procurement creates a data sovereignty constraint
Public sector procurement, particularly for GenAI solutions in the US and EU, is increasingly mandating strict data residency and sovereignty requirements. Simultaneously, US federal procurement is also implementing new clauses restricting the use of government data for training supplier AI models and limiting foreign AI systems. These granular requirements create a significant barrier for vendors who cannot meet bespoke data governance standards.
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