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ISG reports that 65 percent of organizations are currently evaluating or piloting local, open weight artificial intelligence models. Nearly 20 percent of surveyed organizations have moved to deployment of a local large language model (LLM).
The findings demonstrate growing enterprise interest in leveraging locally operated AI solutions, with implications for AI-related risk management, cost structures, and provider strategy remaining a focus.
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ISG has previously reported that AI compliance and adoption have outperformed expectations, though core business impact remains limited, according to recent findings. The firm has also advised banks to distinguish between data residency and full digital sovereignty, emphasizing the need for broader risk management measures in its recent statements. These prior assessments inform the current focus on risk and strategy as organizations expand local AI adoption.