UK tech leaders prioritise AI hosting location in deals

UK technology leaders are placing greater weight on where AI infrastructure is hosted when choosing communications platforms. New research found that 84% of UK CIOs and CTOs consider hosting location important in that decision.

The survey also showed that 39% of UK respondents now rank hosting location as their top priority, compared with 30% globally.

The findings come from research commissioned by 8x8 and conducted by Censuswide among 2,501 CIOs and CTOs across the UK, US, France, Australia and the Republic of Ireland, including 501 in the UK. The study examined views on AI-enabled communications and the factors organisations consider when selecting or updating communications systems.

Digital Space, a UK managed services provider and 8x8 partner, said the results reflect a broader shift in how businesses assess communications technology as AI becomes part of both new and existing estates.

Traditional concerns such as performance, resilience, user experience and cost still matter. But the survey suggests AI is widening the range of issues under review. Respondents are paying closer attention to governance, security, data location, visibility and control as they assess platforms.

Data scrutiny

The research found that 91% of UK CIOs and CTOs said data sovereignty has become a greater priority over the past 12 months. That points to a wider focus on where business data sits and how organisations maintain oversight as AI tools are used more widely in communications and customer interactions.

Accountability is also emerging as a central issue. Half of UK respondents said the CIO would be accountable if an AI agent made an error during a customer interaction, while only 5% assigned that responsibility to legal or compliance.

The results suggest responsibility for AI decisions is being concentrated within technology leadership, increasing pressure on CIOs and CTOs to ensure systems are governed and monitored effectively. For companies introducing AI into contact centres, unified communications and other communications tools, that could mean closer scrutiny of vendors' infrastructure choices and data arrangements before contracts are signed.

Nathan Steadman, solutions and strategy director at Digital Space, said: "The research backs up what we are already seeing in the market. There is real interest in what AI can add to communications, from improving customer interactions to helping staff work more effectively, but organisations are also looking much more closely at the environment in which it operates.

"They want to understand where AI infrastructure is located, where sensitive business data is hosted, what that means for sovereignty and security, and what level of visibility and control they will have once it is in use. The answer will not be the same for every organisation, which is why those choices need to be deliberate rather than based on assumptions.

"We are helping customers work through those choices from the outset so platform, data location, security and governance can be considered together. The AI opportunity is significant, but organisations will get more from it when those decisions are made intentionally rather than revisited later."

Buying criteria

The figures indicate that AI is shifting communications procurement from a narrower technology buying decision to a broader risk and governance exercise. Hosting arrangements, sovereignty requirements and operational control are becoming part of the same discussion as service quality and cost.

That matters as much for organisations modernising older communications estates as for those making first-time platform choices. In both cases, AI integration appears to be drawing more attention to the relationship between technical design, data handling and corporate accountability.

For suppliers and channel partners, the shift may also increase demand for advisory work around compliance, deployment options and governance frameworks, particularly in sectors with stricter data handling requirements. The UK results suggest local concerns about hosting location are stronger than in the wider international sample.

Claire Snow, UK and Ireland channel lead at 8x8, said: "It's a demanding time to be a CIO or CTO. Half of UK technology leaders say the CIO is accountable when an AI agent gets it wrong, and where AI is hosted now shapes who they buy from. That is why partners like Digital Space matter. They help customers work through platform, data location and governance together before those choices become problems.

"The encouraging part is that none of this is out of reach. Organisations that make these decisions deliberately can consolidate their communications and keep control of their data."