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Ukraine to pick AI models operated without provider control, official says - Finance news and analysis from Global Banking & Finance Review
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Ukraine to pick AI models operated without provider control, official says

Published by Global Banking & Finance Review

Posted on July 7, 2026

3 min read

· Last updated: July 7, 2026

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Ukraine to Favor Locally Run AI Models for Service and Security Autonomy

Ukraine’s Strategic Shift Toward On-Premise AI Solutions

By Leo Marchandon and Gianluca Lo Nostro

July 7 (Reuters) - Ukraine will favour AI systems it can run on its own servers, a senior ministry official said on Tuesday, as wartime Kyiv seeks to keep digital tools for government services, businesses and the military from depending on remote systems that providers can restrict or switch off.

Preference for Self-Hosted AI Models

The approach favours self-hosted, or "on-premise," models that Ukraine can deploy on its own infrastructure, while limiting solutions that, by design, remain under the provider's control — a category that includes Anthropic and OpenAI's main models.

Policy Reinforcement and Global Context

The policy was reinforced after the U.S. government ordered Anthropic to cut access to powerful models, echoing broader European sentiment, Roman Kyslyi, Chief AI Officer at Ukraine's Ministry of Digital Transformation, told Reuters.

"It confirms that AI sovereignty isn't just a defensive talking point, it's a necessity," he said. 

Reuters reported on Tuesday that Chinese authorities are considering curbs on top AI models, which currently dominate the open-source market. 

Criteria for AI Model Selection

Kyslyi said the decisive criterion is not about where the model is from. "If the vendor will provide it to run on our on-premise (infrastructure), there are no restrictions."

Collaboration with Providers

"The model is essentially a commodity," Kyslyi said, adding that Ukraine would work with any provider whose technology could be deployed under Ukrainian control.

Current AI Deployments and Future Plans

Use of Google’s Gemini in Government Services

Currently, Ukraine's AI assistant inside the Diia government app runs on Google's remote-only Gemini, accessed through servers within the European Union. Kyslyi said Google provided free tokens for it, meaning no budget spending.

Data Privacy Measures

Still, Ukraine strips personal data before sending queries to Gemini because they "don't control those models," he said, describing Gemini as an "interim" solution.

Development of a Domestic AI Model

Ukraine is also developing its own model with Kyivstar based on Google's Gemma, its open variant, due to be released in autumn and intended for use across government services, private enterprises and the military.

Evaluation of Open-Source Options

Kyslyi said the ministry compared several open-source options before choosing Gemma, including Mistral models and OpenAI's GPT-OSS. Gemma and Mistral matched remote-only alternatives on many performance tests, he said.

(Reporting by Leo Marchandon and Gianluca Lo Nostro in Gdansk, Editing by William Maclean)

Key Takeaways

  • Ukraine seeks AI sovereignty by using self‑hosted (on‑premise) models to avoid reliance on provider‑controlled systems.
  • A U.S. export control order temporarily cut access to Anthropic’s powerful Fable 5 and Mythos 5 models, reinforcing Ukraine’s concerns about dependency. (tomshardware.com)
  • Ukraine is developing its own AI model based on Google’s open‑source Gemma, to be deployed across government, business and military infrastructure. (dev.ua)

References

Frequently Asked Questions

Why is Ukraine choosing on-premise AI models?
Ukraine wants to control its AI infrastructure, avoiding reliance on remote providers that could restrict or cut service.
What AI models is Ukraine using for government services?
Ukraine currently uses Google's Gemini for its Diia app but plans to switch to an on-premise model based on Google Gemma.
How does Ukraine address data security with remote AI models?
Ukraine removes personal data before sending queries to remote models like Gemini to protect privacy and sovereignty.
Will Ukraine work with foreign AI providers?
Yes, Ukraine will work with any provider willing to deploy models on Ukraine's own infrastructure under full local control.
What are the alternatives considered for Ukraine's AI systems?
Ukraine assessed several open-source solutions, including Gemma, Mistral, and OpenAI's GPT-OSS, before selecting Gemma.

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