Governments across Asia-Pacific, including the Philippines, are rapidly elevating sovereign artificial intelligence (AI) as a national priority, although challenges related to skills shortages, trust, and infrastructure readiness continue to hinder large-scale deployment, according to a study commissioned by Dell Technologies.

In a report released on Wednesday, May 13, research firm International Data Corp. (IDC) said sovereign AI has surged from the seventh- to the second-highest government investment priority in the region within just one year.

The study, based on a survey of 360 government information technology (IT) decision-makers across eight Asia-Pacific markets, found that governments increasingly view AI as critical national digital infrastructure rather than merely a technology upgrade.

IDC said nearly half, or 46.1 percent, of Asia-Pacific government agencies are actively evaluating sovereign AI technologies, while 36.1 percent are already conducting proof-of-concept projects.

More than three-fourths, or 76.9 percent, of respondents said investing in sovereign AI enhances resilience against geopolitical risks and supply-chain disruptions.

Despite growing interest, however, only 3.1 percent of governments surveyed are making significant investments so far, while just 1.7 percent said they have no plans to adopt sovereign AI.

The study also showed near-universal confidence in agentic AI, or autonomous AI systems capable of independently carrying out tasks and decisions.

About 99 percent of respondents said agentic AI would accelerate public-sector AI adoption, with 36.9 percent believing it would play a major role and 62.1 percent expressing strong confidence in its potential when paired with governance and oversight frameworks.

At the same time, IDC noted that nearly nine in 10 Asia-Pacific government organizations are facing critical digital-skills shortages, particularly in areas linked to sovereign AI readiness such as AI safety, data governance, cloud architecture, and AI policy.

The report said these workforce constraints could slow the transition from pilot projects to full-scale deployment.

“Agentic AI is moving quickly from concept to practical consideration for government and executive decision-makers,” said Ravikant Sharma, research director at IDC.

“The study shows strong momentum, with public sector leaders looking to autonomous systems to help close skills gaps, ease workforce pressure and accelerate AI adoption. However, that momentum is conditional. Governments will only move at scale if they have confidence in the security, privacy, sovereignty and infrastructure foundations underpinning these systems,” Sharma added.

Nicole Jefferson, vice president for global government affairs at Dell Technologies, said governments in the region are becoming increasingly pragmatic in building sovereign AI capabilities.

“This research confirms what we’re hearing from government leaders across Asia Pacific: the question is no longer whether sovereign AI matters, but how to operationalize it at national scale,” Jefferson said.

The study covered government agencies and public-sector institutions across Australia, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, and South Korea.