Almost All Indian Govt Agencies Are Evaluating or Deploying Sovereign AI: IDC-Dell Study

India’s push to build sovereign artificial intelligence capabilities is moving from policy discussions to active implementation, with nearly all government leaders surveyed already evaluating or deploying sovereign AI initiatives, according to a new IDC study commissioned by Dell Technologies.

The report, ‘Building a Sovereign AI Foundation for the India Government’, found that 96% of government organisations are actively pursuing sovereign AI with 46% evaluating technologies and another 46% running proof-of-concept projects. A further 4% have already moved into significant investments.

Unlike many countries where AI regulation and innovation are treated as separate priorities, India is increasingly integrating the two through its digital public infrastructure stack. Platforms such as Aadhaar, UPI, ONDC, and BHASHINI are emerging as key pillars of the country’s sovereign AI strategy, enabling governance, trust, and data stewardship to be embedded directly into digital systems.

“India has built something truly pioneering which is a digital public infrastructure that functions as both a governance framework and an innovation platform,” Manish Gupta, President and Managing Director, Dell Technologies India, said in a statement.

The study suggests that national security and strategic autonomy are becoming major drivers of sovereign AI investments. Around 73.3% of respondents said sovereign AI is essential for protecting sensitive national data and ensuring compliance with local regulations. Meanwhile, 70% view such investments as a safeguard against geopolitical uncertainty and supply-chain disruptions.

Government agencies are prioritising sovereign AI deployments in national security and defence, cited by 46% of respondents followed by procurement and supply chain operations at 36%.

The report also points to growing confidence in agentic AI, a new class of AI systems capable of autonomously performing tasks and making decisions. Nearly 98% of government leaders expressed confidence in agentic AI, with 44.4% believing it will play a major role in accelerating adoption. This is significantly higher than the Asia-Pacific average of 36.9%.

However, the path to scaling sovereign AI remains challenging. More than 92% of respondents identified specialised digital talent as a critical requirement, particularly in areas such as AIOps, network integration, and sovereign data governance.

Cybersecurity and regulatory complexity also remain key concerns. Around 36% of respondents highlighted the need to strengthen cybersecurity capabilities, while 34% pointed to challenges associated with navigating cross-jurisdictional regulatory frameworks.

The findings indicate that India’s public sector is increasingly viewing AI not merely as a technology initiative but as a strategic national capability with sovereign AI emerging as a cornerstone of the country’s broader ambitions for digital self-reliance.