Managing the Crisis: AI and the Demise of National Sovereignty?

This study investigates the evolving crisis of national sovereignty in the context of artificial intelligence and the expanding power of transnational technology corporations. Drawing from over thirty peer-reviewed academic and policy sources published between 2018 and 2025, this paper critically examines how traditional concepts of sovereignty—particularly data, digital, technological, and normative sovereignty—are being redefined by global AI infrastructures and the algorithmic authority of private firms. Employing a qualitative, interdisciplinary methodology grounded in law, political theory, and ethics, the research reveals growing asymmetries between state authority and corporate influence over digital infrastructures, data governance, and regulatory norms. Our findings highlight divergent policy responses, including efforts to reassert sovereign control through data localization, the pursuit of strategic autonomy, and emerging international cooperation frameworks. The study also evaluates normative debates surrounding legitimacy, democratic oversight, and algorithmic accountability. The study concludes that sovereignty in the AI era must be reconceptualized beyond territorial jurisdiction to include infrastructural and ethical dimensions, necessitating hybrid governance models that integrate states, civil society, and corporations, while prioritizing democratic legitimacy and public interest.