Why Companies Are Shifting Toward Private AI Models
InformationWeek, Tuesday, May 12th, 2026
Enterprises are increasingly adopting private AI models alongside public ones to leverage proprietary data and create competitive differentiation.
According to Forrester CEO George Colony, private AI models will drive 70% of revenue created by AI within five years as enterprises recognize the value of using proprietary data.
While public large language models excel at speed and innovation, companies cannot risk exposing sensitive internal information to them, making private models essential for differentiation. CIOs are shifting toward hybrid AI architectures that combine public models as foundational infrastructure with private models built on top using techniques like retrieval-augmented generation (RAG) to capture proprietary workflows and outcomes. Key considerations for CIOs adopting private models include data readiness and governance, selecting the right use cases where private models justify the investment, and maintaining vendor flexibility to avoid lock-in as the AI landscape rapidly evolves.