IBM Study: Limited Control and Rising Dependencies Leave Enterprises Exposed in the Age of AI

• 68% of surveyed executives say meeting data residency and sovereignty requirements across geographies is challenging
• Nearly all (91%) respondents report not fully understanding their AI dependencies across vendors, models, and infrastructure
• Organizations with the most advanced AI control capabilities protect more than half of their operating profit from AI-driven disruptions

ARMONK, N.Y., June 17, 2026 /PRNewswire/ -- A new global study by the IBM (NYSE: IBM) Institute for Business Value finds that as enterprises embed AI deeper into core business operations, most surveyed organizations remain locked into AI systems they cannot easily change, reinforcing the growing importance of AI sovereignty to maintain business continuity and performance.

Based on insights from 1,000 senior executives, The Calculus of AI Sovereignty study* reveals that 71% of respondents say switching their primary AI vendor or model would be difficult, highlighting significant operational constraints. Additionally, 68% of surveyed executives say meeting data residency and sovereignty requirements across geographies is challenging, creating complexity in moving AI systems or data across environments. These dynamics point to growing pressure on organizations to strengthen control and oversight as AI adoption and compliance requirements expand.

While the need for control is intensifying, most organizations still lack the visibility required to act on it: 91% of those surveyed say they don't fully understand their organization's dependencies across AI vendors, models and infrastructure, limiting the ability to assess risk and plan for disruption. Surveyed leaders report an average of six AI-related disruptions over the past two years, largely driven by vendor services, yet 81% say a seven-day vendor outage would still cause severe or critical disruption, effectively halting operations.

Respondents also cite unexpected changes across the AI ecosystem, including price increases, usage restrictions, model deprecations, and performance degradation. These findings underscore the challenges enterprises face in managing AI dependencies.

Ana Paula Assis, IBM Senior Vice President and Chair, EMEA and APAC, said in the study foreword: "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. The stakes are no longer technical; they are economic. Any loss of control can translate directly into margin pressure, compliance exposure, or outright business disruption."

According to the study, organizations that design AI systems to adapt data, models and infrastructure as conditions change – a core element of AI sovereignty – are outperforming peers:

• Analysis shows that organizations with the most advanced AI control capabilities see less AI downtime and protect 55% more operating profit from AI-driven disruptions.
• Yet, only a minority of the organizations surveyed (7%) operate at this level, signaling a widening gap between those building adaptable AI systems and those constrained by dependency.
• 72% of surveyed executives say they would accept a 20% cost increase to maintain AI vendors if it improved strategic flexibility.

Most surveyed organizations (73%) describe their AI environments as intentionally multi-‑vendor, yet vendor diversity in practice appears to be driven less by deliberate strategy and more by internal and operational realities¹:

• Independent business unit decisions (69%) and geographic necessity (69%) emerge as the leading drivers.
• Legacy complexity is also widely cited by respondents (57%), reflecting mergers, acquisitions, and historical decisions—common across organizations but less often the primary driver.

The study also provides a roadmap for senior executives on how to build flexible, resilient, and sovereign AI systems. To view the full study, visit: https://ibm.biz/ai-sovereignty.

¹ Unpublished data from the IBM Institute for Business Value The Calculus of AI Sovereignty Study (2026).

*Study Methodology
The IBM Institute for Business Value, in collaboration with Oxford Economics, conducted a global survey between February and April 2026 to examine how organizations structure control across the AI stack and how these choices relate to resilience, performance and operating economics. The study is based on responses from 1,000 senior executives responsible for AI, data, technology, or related enterprise capabilities across 16 countries and 17 industries. Additional analysis identified distinct AI control profiles by segmenting organizations based on how they structure control across data, models, infrastructure and applications, and assessing the relationship to resilience, performance and operating economics.

The IBM Institute for Business Value, IBM's thought leadership think tank, combines
global research and performance data with expertise from industry thinkers and leading academics to deliver insights that make business leaders smarter. For more world-class thought leadership, visit: www.ibm.com/ibv. To receive more insights, subscribe to the IdeaWatch newsletter: https://ibm.co/ibv-ideawatch. 

About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity, and service.  Visit www.ibm.com for more information.

Media Contact
Marisa Conway
IBM Corporate Communications
conwaym@us.ibm.com

ARMONK, N.Y., June 17, 2026 /PRNewswire/ -- A new global study by the IBM (NYSE: IBM) Institute for Business Value finds that as enterprises embed AI deeper into core business operations, most surveyed organizations remain locked into AI systems they cannot easily change, reinforcing the growing importance of AI sovereignty to maintain business continuity and performance.

Based on insights from 1,000 senior executives, The Calculus of AI Sovereignty study* reveals that 71% of respondents say switching their primary AI vendor or model would be difficult, highlighting significant operational constraints. Additionally, 68% of surveyed executives say meeting data residency and sovereignty requirements across geographies is challenging, creating complexity in moving AI systems or data across environments. These dynamics point to growing pressure on organizations to strengthen control and oversight as AI adoption and compliance requirements expand.

While the need for control is intensifying, most organizations still lack the visibility required to act on it: 91% of those surveyed say they don't fully understand their organization's dependencies across AI vendors, models and infrastructure, limiting the ability to assess risk and plan for disruption. Surveyed leaders report an average of six AI-related disruptions over the past two years, largely driven by vendor services, yet 81% say a seven-day vendor outage would still cause severe or critical disruption, effectively halting operations.

Respondents also cite unexpected changes across the AI ecosystem, including price increases, usage restrictions, model deprecations, and performance degradation. These findings underscore the challenges enterprises face in managing AI dependencies.

Ana Paula Assis, IBM Senior Vice President and Chair, EMEA and APAC, said in the study foreword: "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. The stakes are no longer technical; they are economic. Any loss of control can translate directly into margin pressure, compliance exposure, or outright business disruption."

According to the study, organizations that design AI systems to adapt data, models and infrastructure as conditions change – a core element of AI sovereignty – are outperforming peers:

• Analysis shows that organizations with the most advanced AI control capabilities see less AI downtime and protect 55% more operating profit from AI-driven disruptions.
• Yet, only a minority of the organizations surveyed (7%) operate at this level, signaling a widening gap between those building adaptable AI systems and those constrained by dependency.
• 72% of surveyed executives say they would accept a 20% cost increase to maintain AI vendors if it improved strategic flexibility.

Most surveyed organizations (73%) describe their AI environments as intentionally multi-‑vendor, yet vendor diversity in practice appears to be driven less by deliberate strategy and more by internal and operational realities¹:

• Independent business unit decisions (69%) and geographic necessity (69%) emerge as the leading drivers.
• Legacy complexity is also widely cited by respondents (57%), reflecting mergers, acquisitions, and historical decisions—common across organizations but less often the primary driver.

The study also provides a roadmap for senior executives on how to build flexible, resilient, and sovereign AI systems. To view the full study, visit: https://ibm.biz/ai-sovereignty.

¹ Unpublished data from the IBM Institute for Business Value The Calculus of AI Sovereignty Study (2026).

*Study Methodology
The IBM Institute for Business Value, in collaboration with Oxford Economics, conducted a global survey between February and April 2026 to examine how organizations structure control across the AI stack and how these choices relate to resilience, performance and operating economics. The study is based on responses from 1,000 senior executives responsible for AI, data, technology, or related enterprise capabilities across 16 countries and 17 industries. Additional analysis identified distinct AI control profiles by segmenting organizations based on how they structure control across data, models, infrastructure and applications, and assessing the relationship to resilience, performance and operating economics.

The IBM Institute for Business Value, IBM's thought leadership think tank, combines
global research and performance data with expertise from industry thinkers and leading academics to deliver insights that make business leaders smarter. For more world-class thought leadership, visit: www.ibm.com/ibv. To receive more insights, subscribe to the IdeaWatch newsletter: https://ibm.co/ibv-ideawatch. 

About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity, and service.  Visit www.ibm.com for more information.

Media Contact
Marisa Conway
IBM Corporate Communications
conwaym@us.ibm.com

** This press release is distributed by PR Newswire through automated distribution system, for which the client assumes full responsibility. **

IBM Study: Limited Control and Rising Dependencies Leave Enterprises Exposed in the Age of AI

IBM Study: Limited Control and Rising Dependencies Leave Enterprises Exposed in the Age of AI

Winning name pays tribute to the resilience, reliability and pioneering spirit of Australia's stockmen

SYDNEY, June 17, 2026 /PRNewswire/ -- After receiving more than 20,000 submissions from Australians across the country, then narrowed down to eight, Chery Australia can officially reveal 'Stockman' is to title the brand's upcoming diesel Plug-in Hybrid ute, marking the conclusion of an unprecedented competition that was embraced by drivers across the nation.

The winning name came from Victoria's Steve Kodikara, who will now drive away with the first Stockman ute when it lands in Australia later this year.

Launched earlier this year, the competition invited Australians to help name a ute designed specifically for them, driving an overwhelming response from motorists, tradies, families, ute enthusiasts and regional communities nationwide. Following an extensive review and public voting process, 'Stockman' emerged as the winning name.

Inspired by the resilience, dependability and hard-working spirit of Australia's stockmen, the name reflects the characteristics Chery believes define its first ute: capability, endurance and versatility across a wide range of Australian conditions.

Steve's submission stood out not only for the name itself, but for the story behind it. Steve described the stockman as Australia's original workhorse, someone able to navigate challenging terrain, overcome obstacles and earn trust through reliability and perseverance. He drew parallels between that spirit and Chery's ute, which combines traditional capability with next-generation technology.

"I'm incredibly honoured that Stockman was chosen from the thousands of entries submitted to title Chery's new ute. I felt the name captured the spirit of Australia's original workhorse and everything a ute should represent: reliability, capability and resilience. I'm glad it resonated with Australians, and I'm thrilled to see it become part of Chery's story," said Steve Kodikara.

Lucas Harris, Chief Operating Officer, Chery Australia, said the response to the competition exceeded all expectations.

"The response to this competition exceeded our expectations and showcased just how passionate Australians are about utes," said Harris. "Stockman stood out because it captured something uniquely Australian while reflecting the capability, reliability and innovation behind our upcoming ute. Steve's submission brought the name to life through a compelling story, connecting Australia's heritage with the next generation of ute technology."

Stockman emerged from a highly competitive shortlist that included Outrider, Orca, Ironbark, Bushwalker, Longreach, Ridgeback, Terra and Mate, ultimately receiving more than 25 per cent of votes cast by over 12,000 Australians during the public voting phase.

The Stockman will debut as Chery Australia's first ute and the nation's first diesel Plug-in Hybrid, combining diesel power with advanced plug-in hybrid technology, the vehicle represents a significant milestone for Chery as it continues to expand its local portfolio.

Further details, including specifications, pricing and launch timing for Stockman, will be announced closer to market introduction.

About Chery Motor Australia:

Chery Australia is a leading automotive brand recognized globally for its commitment to innovation, style, and performance. With a rich history spanning over two decades, Chery has established itself as a pioneer in the industry. Known for producing technologically advanced and visually striking vehicles, Chery offers a diverse range of models that cater to different lifestyles and preferences. Each Chery vehicle embodies the brand's passion for pushing boundaries and redefining the driving experience.   

For more details on Chery visit www.cherymotor.com.au or Instagram @cheryaustralia   

Steve's entry below:

• STOCKMAN: The Australian stockman is more than a rugged icon, he's a highly skilled worker shaped by an unforgiving history. Not a folk tale. A real person, doing a real job, across terrain that defeated every piece of equipment that wasn't built specifically to handle it. They covered Australia's vast distances not because it was easy, but because the job demanded it, across stock routes stretching thousands of kilometres, through conditions that modern vehicles still struggle to manage. They delivered without fail, because failure wasn't an option when the land and the livelihoods of entire communities depended on them getting through. The Chery STOCKMAN was built in exactly that spirit. Diesel power fused with electric drive. Old-world grit fused with next-generation engineering. The heritage of a working nation fused with the technology that will carry it forward. This isn't a ute named after a legend. It's a ute that is one. Chery STOCKMAN. Built for the Australia that never stopped working.

** This press release is distributed by PR Newswire through automated distribution system, for which the client assumes full responsibility. **

The public has spoken: 'Stockman' crowned the winning name for Chery's category defining ute