European sovereign AI and cloud services not yet ready for major banks, Temenos CEO says
Europe’s push to strengthen its technological independence is gaining momentum, but major banks may have to wait before they can fully embrace European sovereign artificial intelligence (AI) and cloud computing solutions, according to Temenos CEO Takis Spiliopoulos.
Spiliopoulos, who leads Swiss banking software company Temenos, said European sovereign AI and cloud initiatives had not yet reached the level of maturity required for large banks to adopt them at scale. His comments highlight the challenges facing Europe as it seeks to reduce its reliance on major US technology providers.
The European Union has been working to strengthen its technological sovereignty through initiatives such as the proposed Cloud and AI Development Act. These efforts aim to build European capabilities in cloud computing and artificial intelligence while reducing dependence on US-based hyperscalers, including Amazon, Microsoft and Google.
Concerns about data security, privacy and foreign legal access have become central to the debate. Although several countries have encouraged US cloud providers to establish local data centres, questions remain about whether storing information within European borders is enough to guarantee that it remains beyond the reach of foreign authorities.
Speaking to Reuters, Spiliopoulos explained that sovereign data and AI solutions were not yet sufficiently developed to meet the expectations and operational requirements of major banks.
The challenge extends beyond where data is physically stored. Financial institutions must also consider who can access their information, which laws apply to their technology providers, and whether their systems can meet strict regulatory and security requirements across different countries.
According to Spiliopoulos, developing European sovereign cloud and AI offerings capable of supporting large financial institutions will take time. Major banks typically operate complex technology infrastructures and require solutions that can deliver reliability, security and consistent performance across their operations.
Cross-border banking presents another significant obstacle. Financial institutions operating in several jurisdictions must comply with different regulatory frameworks, data protection requirements and operational standards. A sovereign technology solution that works in one country may not automatically satisfy the requirements of a bank operating throughout Europe.
For European policymakers and technology companies, the challenge is to develop services that offer genuine technological independence without compromising the performance, scalability and security that financial institutions demand.
The debate also reflects a broader question about Europe’s digital future. While reducing dependence on foreign technology providers has become a strategic priority, building competitive domestic alternatives requires investment, technical expertise, infrastructure and time.
For major banks, adopting sovereign AI and cloud services will ultimately depend on whether these solutions can meet their regulatory obligations and operational needs. Until European providers can demonstrate that they are ready to support complex banking operations at scale, many financial institutions are likely to approach the transition cautiously.
Europe’s ambition to achieve greater technological sovereignty remains significant, but the path towards that goal will require more than policy commitments. It will depend on building trusted, mature and commercially viable technology solutions that can compete with established global providers.