On the RegulatingAI podcast, Sanjay Puri and Luis Diaz explain data sovereignty, AI risks, and why control, accuracy, and human oversight matter in AI use.
WASHINGTON, DC, UNITED STATES, April 27, 2026 /EINPresswire.com/ — In an episode of the RegulatingAI podcast, host Sanjay Puri speaks with Luis Antonio Diaz, CEO of Blü AI Technologies and founder of Ofario AI. They meet at the Emerge Americas conference in Miami to discuss one of the most urgent topics in technology today: data sovereignty. Their conversation also explores AI risks, including hallucinations, and what businesses must do to stay safe and responsible.
Sanjay Puri begins the discussion by asking a simple but important question: what does data sovereignty mean? Luis Antonio Diaz gives a clear answer. He explains that data sovereignty means having full control over your data. This includes knowing where the data is stored, how it moves, and who can access it. He stresses that many organizations still do not fully understand this concept.
The Challenges of Global Data Sovereignty and Legislative Impact
Luis explains that laws like the U.S. Patriot Act created global concerns about data control. If data flows through U.S. servers, the government can access it for national security reasons. This has pushed countries like Canada and those in Europe and Asia to create strict rules. These countries want to ensure that their data stays within their own borders and remains under their control. On the RegulatingAI podcast, Sanjay Puri highlights that this issue is less visible in the United States because many global servers are based there. However, Luis points out that the concern is growing worldwide. Governments and organizations now want ownership, traceability, and auditability of their data at all levels.
The discussion then shifts to what smaller countries can do. Many nations do not have the resources to build their own data centers. Luis suggests that regional solutions can help. He shares an example of data center collaborations in island regions. These partnerships allow smaller countries to maintain control over their data without building large infrastructure alone. He also predicts the rise of global data hubs, similar to financial hubs, where countries can securely store and manage data. Luis also explains that many organizations are now moving toward on-premise systems. This shift happens because cloud computing costs are rising, and companies want more control over their data. He believes this trend will continue as businesses seek better security and lower risks.
The conversation on the RegulatingAI podcast then turns to AI ethics and risks. Luis raises a major concern: data leakage. Many companies delay adopting AI due to privacy and sovereignty concerns. However, employees still use public AI tools on their own. This creates “shadow AI,” where workers unknowingly share sensitive data with external systems. Luis warns that this behavior increases risks. He recommends that companies adopt controlled systems, known as closed-loop AI. These systems only use internal data and reduce the chance of data leaks. He believes companies must guide employees instead of blocking AI completely.
Another critical issue discussed by Sanjay Puri and Luis Antonio Diaz is AI hallucination. Luis explains that AI systems do not always produce accurate results. Instead, they generate answers based on patterns, not facts. He shares a striking statistic: 42% of business leaders in the United States have made major decisions based on incorrect AI-generated data.
Luis also mentions real-world cases where organizations faced legal action due to hallucinated outputs. These examples show how serious the problem has become. He stresses that companies must build strong guardrails to verify AI outputs before using them in decision-making.
Luis concludes by emphasizing the importance of human involvement. He supports a “human-in-the-loop” approach, where people review and guide AI systems. He believes that AI can be powerful and beneficial, but only when used responsibly.
In this episode of the RegulatingAI podcast, Sanjay Puri and Luis Antonio Diaz provide valuable insights into data sovereignty and AI governance. They show that while AI offers great opportunities, organizations must act carefully to protect data, ensure accuracy, and build trust in this rapidly changing world.
Upasana Das
Knowledge Networks
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