Using Generative AI While Ensuring Data Sovereignty

This technical report discusses the application of Generative AI (GenAI) in the financial sector, focusing on how to utilize it without compromising data sovereignty. It outlines the necessity for financial institutions to optimize GenAI models using their proprietary data to perform specialized tasks such as sales support and compliance checks. The report emphasizes the importance of data sovereignty, which involves retaining data within its country of origin and adhering to local laws and regulations. It identifies three key prerequisites for Japanese companies to use GenAI effectively: restricting data hosting and training to local data centers, implementing stringent data governance and security measures, and optimizing the GenAI build environment for specific business processes. The report also highlights the potential emergence of AI platform services that provide shared access to dedicated public clouds, which can help address the challenges of data sovereignty while enhancing GenAI capabilities in financial institutions.