European businesses face a critical AI dilemma: how to leverage artificial intelligence while maintaining strict compliance with GDPR, the EU AI Act, and industry specific regulations. Traditional cloud AI solutions create data sovereignty risks and regulatory gaps, while GPU-dependent infrastructure requires substantial hardware investment. Deloitte and Intel, as strategic alliance partners, address this challenge through consulting and integration services based on compliance-by-design and an open-source GenAI architecture optimized for Intel hardware. We bring expertise in deploying and integrating enterprise-ready Private AI solutions precisely where company data lives - on-premises, in private clouds, or hybrid environments - without vendor lock-in or costly GPU requirements.
91% of German companies now consider AI to be business-critical – a dramatic increase from just 55% last year[1]. At the same time, the EU is investing €200 billion in AI infrastructure to ensure technological independence. These figures underscore the urgency of an European AI strategy that is both powerful and compliant.
The EU AI Act, which has been officially in force since June 2024 and will be implemented in stages until 2027, introduces unprecedented regulatory complexity. High-risk AI systems in areas such as manufacturing, healthcare, and finance require comprehensive documentation, human oversight, and continuous monitoring. Violations can result in penalties of up to €35million or 7% of global annual revenue.
At the same time, GDPR requirements are increasing the pressure on data sovereignty. German companies that process personal or sensitive data must keep it within secure perimeters and prevent unauthorized transfers.
Private AI keeps sensitive operational data, intellectual property, and citizen information within German borders under direct organizational control. This eliminates the risk of proprietary processes beingdisclosed to foreign entities or embedded in public AI models.
Regulatory compliance and risk mitigation are enabled through complete control over BSI, GDPR, and KRITIS requirements. This approach reduces legal exposure and ensures that AI initiatives comply with German and European governance frameworks.
Operational excellence and cost optimization are achieved by integrating AI into existing IT infrastructure. Private AI eliminates data transfer latencies and external costs, enables real-time processing for manufacturing automation and critical infrastructure monitoring, while reducing costs by eliminating API costs and data egress fees.
Deloitte and Intel’s Private AI offering delivers secure, scalable, and compliant AI aligned with European standards and open-source principles. It enables data processing on-premises or in private clouds, ensuring GDPR and AI Act compliance. Deloitte’s design principles – self-hosted by default, secure via open architecture, and automated by design – support enterprise needs under regulatory constraints. The solution uses Zero-Trust security, GitOps automation, and standardized IaC tools to ensure flexibility, transparency, and rapid deployment while avoiding vendor lock-in.
Cost-effective alternative to GPU infrastructures 75% of companies already operate on x86 infrastructure.[2] Intel OpenVINOTM enables them to activate GenAI capabilities without hardware upgrades, vendor lock-in, or dependence on hyperscaler cloud services. This reduces costs, accelerates adoption, and strengthens data sovereignty.
Internal benchmarking studies by Deloitte show impressive results:
Intel® Xeon® Platinum 8568Y+ featuring Advanced Matrix Extensions (AMX) built-in accelerator technology achieved 18-75 tokens per second across various model sizes. Under simultaneous load, Intel maintained 4.65-18.86 tokens per second per request – consistent performance scaling that is critical forenterprise deployments with multiple simultaneous users.
Our platform can deliver up to 37% cost savings compared to GPU infrastructures over three years, while running efficiently on existing Intel CPU hardware without requiring expensive upgrades.
Organizations can achieve a 380% return on investment over three years with a payback period of just 1.1 years through reduced infrastructure costs and improved operational efficiency. Modular Kubernetes architecture deploys over existing Intel-based infrastructure in weeks instead of months.
The requirements of Germany's industrial economy align perfectly with Deloitte and Intel's AI offerings and ecosystem. The country's mid-sized companies, representing 99% of German enterprises and generating 50%+ of economic output, require cost-effective, accessible AI solutions.
With its open-source foundation and hardware flexibility, our joint Deloitte and Intel offering empowers companies to rapidly integrate modern AI into their operations and deliver innovative solutions. The future belongs to European organizations that can harmonize AI innovation with regulatory compliance. Our collaboration provides the strategic edge needed for sustainable success in an AI-driven economy—combining technical excellence, security, and compliance to meet the evolving demands of enterprises.
[1] NewVantage Partners, Data and AI Leadership Executive Survey 2022, accessed 11.10.2025
[2] X86 Server Market By Size, Share, Trends, Growth, and Forecast 2030