A survey of 1,000 senior executives by the IBM Institute for Business Value found that 91% do not fully understand their organization's dependencies across AI vendors, models, and infrastructure. At the same time, 68% said meeting data residency and sovereignty rules is difficult, and 81% reported that a week-long outage from a vendor would severely disrupt operations.
The gap in AI control carries a direct financial cost. Executives experienced an average of six AI-related disruptions in the past two years, primarily caused by vendor problems. Organizations with advanced AI control capabilities-only 7% of those surveyed-protected 55% more operating profit from these disruptions than their less-prepared peers.
Ana Paula Assis, Senior Vice President at IBM, said: "AI has introduced new forms of dependency that evolve faster than traditional governance, procurement, or technology cycles were designed to handle. That is why AI sovereignty has become one of the most defining leadership issues of this moment."
Multi-vendor strategies often lack coordination
73% of respondents described their AI environments as intentionally multi-vendor. Yet behind that figure, many pointed to decisions driven by separate business units or geographic needs rather than a central strategy. This fragmented approach leaves organizations with knowledge gaps that slow their ability to respond to vendor price hikes or service changes.
Despite the risks, executives show a willingness to pay for stability. 72% said they would accept a 20% cost increase to keep their AI vendors if it improved strategic flexibility. The finding suggests that leaders recognize the value of control, even if they haven't yet achieved it.
Why this matters for executives and strategy
The study makes clear that AI dependencies are a leadership issue, not just a technical one. Executives who map their vendor relationships, invest in resilient AI systems, and build internal governance can avoid the operational and compliance shocks that hit 81% of their peers. With only 7% of organizations operating at an advanced level of AI control, there is a wide competitive opening for those who act now. For leaders seeking to deepen their understanding of AI governance, resources like AI for Executives & Strategy offer a starting point.
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