Increased focus on \u201cprivacy and security\u201d may open the door for AI-enabled devices rather than rely entirely on cloud computing and remote data centers.\u00a0<\/p>\n
\u201cIn a world where sovereign data retention matters, people want to know that if they input data to a model, the model won\u2019t train on their data,\u201d David McQuarrie, HP\u2019s chief commercial officer, told Fortune in October. Using an AI locally provides that reassurance.<\/p>\n
HP<\/a>, like many of its devicemaking peers, is exploring the use of AI PCs, or devices that can use AI locally as opposed to in the cloud. \u201cLonger term, it will be impossible not to buy an AI PC, simply because there\u2019s so much power in them,\u201d he said.\u00a0<\/p>\n More broadly, smaller companies might be served just as well by a smaller model running locally than a larger model running in the cloud. \u201cA company, a small business, or an individual has significant amounts of data that need not be put in the cloud,\u201d he said.\u00a0<\/p>\n Asian governments have often had stricter rules on data sovereignty. China, in particular, has significantly tightened its regulations on where Chinese user data can be stored. South Korea is another example of an Asian country that treats some locally sourced data as too sensitive to be housed overseas.\u00a0<\/p>\n Governments the world over, and particularly in Asia, are also investing in local sovereign AI capabilities, trying to avoid relying entirely on systems and platforms housed wholly overseas. South Korea, for example, is partnering with local tech companies like search giant Naver<\/a> to build its own AI systems. Singapore is investing in projects like the Southeast Asian Languages in One Network (SEA-LION), which are better tailored to Southeast Asian countries.\u00a0<\/p>\n Asian AI adoption<\/p>\n Asia is HP\u2019s smallest region, but also its fastest-growing. Revenue from Asia-Pacific and Japan grew by 7% over the company\u2019s 2025 fiscal year, which ended in October, to hit $13.3 billion. That\u2019s around a quarter of HP\u2019s total revenue of $55.3 billion. (HP\u2019s other two regions are the Americas; and Europe, the Middle East, and Africa.)<\/p>\n