kearney-data-sovereignty-choice-may-swing-gdp-by-2-3-pointsA · FULL TRANSLATION

- A.T. Kearney publishes a paper on data sovereignty and the balance of free data flows and state governance
- It estimates that different data-governance choices can swing GDP by up to 2.3 percentage points
- As the digital economy and AI expand, the trade-off between data flows and state control becomes pivotal
- Data sovereignty is now an economic-policy variable affecting growth, not just a compliance issue
Worth reading for anyone who treats data as national power: A.T. Kearney's paper turns abstract 'data sovereignty' into a concrete number - governance choices can swing GDP by up to 2.3 points. The value is less the precise figure than the reframing: whether to regulate cross-border data flows is now a growth-policy choice, not just compliance. As AI makes data more like oil, freer flows release more value but risk privacy, security and industrial lines. Japan must walk a tightrope between data interoperability with the US and EU and economic-security controls. For Taiwan, the estimate is a ready reference, and any cloud, cross-border-data or AI business should treat data-localization and compliance cost as an internal model variable.
(Summary translated from A.T. Kearney's paper.) A.T. Kearney (Minato-ku, Tokyo; Japan head Takefumi Harigaya) released a paper, 'The New Tide of Data Sovereignty: Balancing Free Data Flows and State Governance.' It argues that as the digital economy and AI use expand, national choices on data-governance models will materially affect economic performance, estimating that different choices can swing GDP by up to 2.3 percentage points.