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Finance

European sovereign AI, cloud not yet ready for major banks, Temenos CEO says

Published by Global Banking & Finance Review

Posted on October 28, 2026

2 min read

· Last updated: October 28, 2026

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Temenos CEO: European Sovereign AI and Cloud Not Ready for Major Banks

European Efforts Toward Technological Sovereignty in Banking

Oct 28 (Reuters) - Swiss banking software firm Temenos' CEO Takis Spiliopoulos said sovereign AI and cloud initiatives in Europe were not yet mature enough for major banks to adopt, as the region seeks greater technological autonomy from US providers.

EU Initiatives for Cloud and AI Independence

The European Union is seeking to strengthen its technological sovereignty through proposals, including the Cloud and AI Development Act, aimed at reducing dependence on US hyperscalers amid concerns over data access under US legislation and the dominance of Amazon, Microsoft and Google in cloud computing.

Concerns Over Data Access and Local Data Centres

• Spiliopoulos told Reuters that while many countries had pushed US cloud providers to establish local data centres, concerns remained over where data could ultimately be accessed.

Maturity of Sovereign AI and Cloud Solutions

• "Sovereign data or sovereign AI ... it's not yet at a maturity level that they would really entertain this," Spiliopoulos said, referring to banks.

• Prospective European sovereign cloud and AI offerings will take time to develop into solutions that large banks could use at scale, the CEO said.

Regulatory and Operational Challenges

• Cross-border operations and regulatory requirements remain obstacles, particularly for large banks operating across multiple jurisdictions, he added.

(Reporting by Emanuele Berro; editing by Bartosz Dabrowski)

References

Frequently Asked Questions

Why are European sovereign AI and cloud not ready for major banks?
According to Temenos' CEO, these initiatives lack the maturity and scalability required for large banks to adopt, especially given regulatory and cross-border challenges.
What is the EU's goal regarding AI and cloud technology?
The EU aims to achieve technological sovereignty by reducing reliance on US cloud providers and developing local cloud and AI platforms.
What are the concerns with using US cloud providers in Europe?
Concerns include data access under US legislation and dominance by US hyperscalers like Amazon, Microsoft, and Google.
How do cross-border operations affect adopting sovereign AI and cloud?
Cross-border operations and regulatory requirements create obstacles, particularly for banks operating in multiple jurisdictions.
What is the current state of local data centers in Europe?
While many countries have pushed for US cloud providers to establish local data centers, data access and sovereignty concerns still remain.

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