Government agencies see agentic AI as key to sovereign AI adoption

Nearly all government organisations are already evaluating or piloting sovereign AI initiatives, but talent shortages and governance challenges could determine how quickly projects move from experimentation to large-scale deployment.

India's sovereign AI ambitions are moving beyond policy discussions and into active implementation, with government agencies viewing agentic AI as a critical enabler of the next phase of adoption.

Nearly 98 percent of government leaders believe agentic AI can help accelerate sovereign AI adoption across public sector organisations, according to a new IDC study commissioned by Dell Technologies. The findings come at a time when the government is expanding investments under the IndiaAI Mission and exploring ways to strengthen domestic AI capabilities while maintaining control over data, governance and critical digital infrastructure.

The report suggests that sovereign AI is no longer being viewed merely as a technology initiative. Instead, it is emerging as a strategic capability that could influence how government agencies manage citizen services, data governance, national security and digital transformation programmes in the years ahead.

Momentum around sovereign AI is already building. According to the study, almost all government organisations surveyed are either evaluating sovereign AI technologies, running proof-of-concept projects or making investments in the space.

While most initiatives remain at the evaluation or pilot stage, the findings indicate that public sector organisations are actively exploring how AI can be deployed within national governance frameworks.

A key differentiator for India, according to the report, is the country's digital public infrastructure.

Unlike several global markets where AI innovation and regulatory oversight often evolve separately, India's sovereign AI strategy is being built on top of existing digital platforms such as Aadhaar, UPI, ONDC and BHASHINI. These platforms are serving as the foundation for digital trust, governance and data stewardship across government services.

"India has built something truly pioneering which is a digital public infrastructure that functions as both a governance framework and an innovation platform," said Manish Gupta, President and Managing Director, Dell Technologies India.

The report suggests that this foundation could help India pursue sovereign AI without isolating itself from global innovation ecosystems, allowing agencies to maintain control over sensitive data and governance requirements while continuing to leverage advancements in AI technologies.

Strong interest in agentic AI

Within this broader strategy, agentic AI is emerging as a technology area attracting significant attention.

Government leaders believe autonomous and semi-autonomous AI systems could help improve operational efficiency, automate complex workflows and accelerate decision-making across public sector functions.

However, the report makes it clear that technology alone will not determine the success of sovereign AI initiatives.

The biggest challenges identified by government organisations relate to execution rather than access to AI tools or infrastructure.

Talent shortages emerged as one of the most significant barriers to large-scale adoption. According to the study, government agencies continue to face difficulties in accessing specialised skills required to deploy, operate and govern AI environments effectively.

Capabilities including AI operations, systems integration, network management, AI safety and sovereign data governance are becoming increasingly important as organisations move beyond pilot programmes and begin planning production deployments.

The findings highlight a growing reality across both public and private sector AI initiatives: while access to AI models and platforms is improving rapidly, organisations often struggle to find the expertise required to operationalise these technologies at scale.

Cybersecurity and regulatory complexity also remain important considerations.

As sovereign AI initiatives expand, government agencies must balance innovation with requirements around security, compliance and accountability. This is particularly important in environments where sensitive citizen information, critical infrastructure and national security-related data are involved.

The study indicates that public sector leaders recognise that governance frameworks, security controls and responsible AI practices must evolve alongside technology adoption.

For technology vendors, channel partners and systems integrators, the findings point to a growing opportunity beyond simply supplying AI infrastructure or software.

As sovereign AI initiatives mature, demand is likely to increase for services related to AI governance, cybersecurity, systems integration, workforce enablement and operationalisation. Organisations will require support not only in deploying AI technologies but also in building the frameworks needed to manage them responsibly and at scale.

Ultimately, the report suggests that India's sovereign AI journey is entering a new phase. The conversation is shifting from whether government agencies should adopt AI to how they can deploy it securely, responsibly and effectively.