This chapter discusses the increased role of digital sovereignty and strategic autonomy in an era of Artificial Intelligence (AI). It discusses the idea of how countries are worried about having power over information technology and digital infrastructure to protect national and economic security interests. Major drivers that have been analyzed in the chapter include data as a strategic asset geopolitical rivalries and platform dominance and the policy responses such as regulation industrial policy and digital infrastructure. It also brings out such key issues as world interdependence trade-offs in regulations and ethical issues. Lastly it is about future trends with a focus on AI nationalism international collaboration and the strategic place of ethical and inclusive AI systems.