New york: As some governments and large buyers move towards locking AI workloads into region-specific platforms, Southeast Asian legal-tech founders face a new crossroads when planning U.S. pilots, sales, and fundraising. Gartner predicted that platform lock-in, such as sovereign cloud and country-region artificial intelligence (AI) platforms, is expected to grow from 5% to 35% by 2027. This could create compliance and commercial risks for Southeast Asian legal-tech startups seeking to enter the United States market.

According to BERNAMA News Agency, with the proliferation of sovereign-cloud and regionally constrained AI, founders targeting U.S.-based pilots, enterprise customers located in multiple geographies, or cross-border investment should pay particular attention to their data flows and their management of data transfer and governance.