AI capability and infrastructure consolidate among a small number of dominant providers. Their scale and reach underpin critical services across the economy and government, creating dependency risks and reshaping how public institutions access and control digital capabilities. As reliance deepens, governments face constraints on choice, flexibility and influence over foundational technologies. A massive business failure with a major AI provider may drive duopoly/monopoly fears. Strategic decisions increasingly center on resilience, continuity and long‑term autonomy.
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Government agencies rely on a limited set of external platforms for AI enabled services, data processing and decision support. Switching providers becomes costly and complex, and public institutions face constraints in how systems are configured, governed and updated. As AI becomes essential to service continuity and national operations, questions of resilience, sovereignty and accountability grow more pronounced.
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