{"id":1152153,"date":"2025-04-14T09:28:28","date_gmt":"2025-04-14T09:28:28","guid":{"rendered":"https:\/\/www.capgemini.com\/in-en\/?p=1152153&#038;preview=true&#038;preview_id=1152153"},"modified":"2026-01-22T07:47:22","modified_gmt":"2026-01-22T07:47:22","slug":"confidential-ai-how-capgemini-and-edgeless-systems-allow-regulated-industries-to-adopt-ai-at-scale","status":"publish","type":"post","link":"https:\/\/www.capgemini.com\/in-en\/insights\/expert-perspectives\/confidential-ai-how-capgemini-and-edgeless-systems-allow-regulated-industries-to-adopt-ai-at-scale\/","title":{"rendered":"Confidential AI: How Capgemini and Edgeless Systems allow regulated industries to adopt AI at scale"},"content":{"rendered":"\n<header class=\"wp-block-cg-blocks-hero-blogs header-hero-blogs\"><div class=\"container\"><div class=\"hero-blogs\"><div class=\"hero-blogs-content-wrapper\"><div class=\"row\"><div class=\"col-12\"><div class=\"header-title\"><h1>Confidential AI: How Capgemini and Edgeless Systems allow regulated industries to adopt AI at scale<\/h1><\/div><\/div><\/div><\/div><div class=\"hero-blogs-bottom\"><div class=\"header-author\"><div class=\"author-img\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2021\/05\/cg-logo.png?w=200&amp;quality=10\" alt=\"Capgemini\" loading=\"lazy\"\/><\/div><div class=\"author-name-date\"><h5 class=\"author-name\">Stefan Zosel, Ernesto Marin Grez and Thomas Strottner <\/h5><h5 class=\"blog-date\">Apr 14, 2025<\/h5><\/div><\/div><div class=\"brand-image\"> <\/div><\/div><\/div><\/div><\/header>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/?p=1116342\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/shareArticle?url=https:\/\/www.capgemini.com\/?p=1116342\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><div class=\"article-text article-quote-text\">\n<h2 class=\"wp-block-heading\" id=\"h-by-combining-confidential-computing-with-nvidia-h100-gpus-privatemode-ai-provides-cloud-hosted-llms-with-end-to-end-encryption-of-user-data\">By combining confidential computing with Nvidia H100 GPUs, \u201cPrivatemode AI\u201d provides cloud-hosted LLMs with end-to-end encryption of user data.<\/h2>\n\n\n\n<p>The AI revolution is transforming our world at unprecedented speed. Just a few years ago, the idea of conversing naturally with a computer seemed more at home in Hollywood or in science fiction than in the workplace. Yet with the rise of generative AI tools like ChatGPT, these technologies have become an everyday reality, embraced by employees, customers and IT users alike.<\/p>\n\n\n\n<p>However, this rapid adoption brings new challenges, particularly for organizations in regulated industries that must maintain high levels of data protection and privacy.&nbsp; How can those organizations harness the power of GenAI models at scale while also safeguarding sensitive information?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-confidential-ai-solves-the-cloud-versus-on-premises-dilemma\">Confidential AI solves the \u201ccloud versus on-premises dilemma\u201d<\/h2>\n\n\n\n<p>The advent of AI has amplified the importance of choosing between cloud and on-premises infrastructure. Traditionally, organizations preferred to process sensitive data on-premises, within their own data center, as it offered maximum control. But given the significant costs of GPU infrastructure and the energy consumption that AI workloads require, on-premises is usually not economical. What\u2019s more, limited expertise and technical resources for managing AI architectures locally make the cloud \u2013 especially \u201cAI-as-a-service\u201d offerings \u2013 a more viable option for most organizations.<\/p>\n\n\n\n<p>Yet, when deploying AI solutions such as large language models (LLMs) via a cloud-based service, many parties \u2013 cloud, model and service providers \u2013 potentially have access to the data. Which creates problems for regulated industries.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2025\/04\/picture-1.png?w=960\" alt=\"The diagram shows a user sending data to large language models (LLMs), and receiving a response. But because the LLMs are run on the public cloud, use raises privacy and control issues, and the risk of access by unauthorized parties.\" class=\"wp-image-1116347\"\/><\/figure>\n\n\n\n<p><em>Figure 1: With standard GenAI services, model, infrastructure and service providers can all potentially access the data<\/em>.<\/p>\n\n\n\n<p>This is where confidential computing comes into play. While it\u2019s long been standard to encrypt data at rest and in motion, data in use has typically not been protected.<\/p>\n\n\n\n<p>Confidential computing solves this problem with two main features: runtime memory encryption and remote attestation. With confidential computing-enabled CPUs, data stays encrypted in the main memory, strictly isolated from other infrastructure components. Remote attestation also makes it possible to verify the confidentiality, integrity and authenticity of the so-called Trusted Execution Environment (TEE) and its respective workloads.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2025\/04\/picture-2.png\" alt=\"The diagram illustrates the two main pillars of confidential computing. Inside the application or landing zone, data is encrypted whether at rest or in transit. When in use, the CPU keeps data encrypted in memory. Outside the application or landing zone, remote attestation takes place. The CPU issues certificates for security as a compliance and validation step.\" class=\"wp-image-1116348\"\/><\/figure>\n\n\n\n<p><em>Figure 2: Confidential computing provides runtime encryption and remote attestation for verifiable security<\/em>.<\/p>\n\n\n\n<p>Confidential computing has been a standard feature of the last few generations of Intel and AMD server CPUs, where the feature is called TDX (Intel) and SEV (AMD) respectively. With Nvidia\u2019s H100, there\u2019s now a GPU that provides confidential computing \u2013 allowing organizations to run AI applications that are fully confidential.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2025\/04\/picture-3.png\" alt=\"The diagram illustrates how confidential computing protects data end to end. The user sends data to an AI system and receives a result; all data is encrypted in transit. The data is fully protected and cannot be accessed by unauthorized parties.\n\" class=\"wp-image-1116349\"\/><\/figure>\n\n\n\n<p><em>Figure 3: Confidential AI allows organizations in regulated industries to use cloud-based AI systems while protecting the data end to end.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-capgemini-and-edgeless-systems-deliver-confidential-ai-together\">How Capgemini and Edgeless Systems deliver confidential AI together<\/h2>\n\n\n\n<p>Capgemini is a leader in GenAI, managing large-scale projects to drive automation and foster efficiency gains for clients worldwide. The firm has long-standing expertise in delivering AI systems across clouds and on-premises, including critical aspects like user experience, Retrieval Augmented Generation (RAG) and fast inference. (More on these later.)<\/p>\n\n\n\n<p>Data security and privacy are critical aspects of many Capgemini projects, particularly those in regulated industries. This means clients are often confronted with the aforementioned \u201ccloud versus on-premises dilemma\u201d.<\/p>\n\n\n\n<p>The good news: deploying GenAI tools through ough the cloud, with verifiable end-to-end confidentiality and privacy, isn\u2019t a distant future. It\u2019s a reality. And Capgemini is already bringing it to clients in regulated industries like healthcare, defense, the public sector and the financial sector.<\/p>\n\n\n\n<p>In 2024, Capgemini partnered with Edgeless Systems, a German company that develops leading infrastructure software for confidential computing. (See the blog post, <a href=\"https:\/\/www.capgemini.com\/in-en\/insights\/expert-perspectives\/staying-secure-and-sovereign-in-the-cloud-with-confidential-computing\/\" target=\"_blank\" rel=\"noreferrer noopener\">Staying secure and sovereign in the cloud with confidential computing<\/a>.) Edgeless Systems now provides Privatemode AI, a GenAI service that uses confidential virtual machines and Nvidia\u2019s H100 GPUs to keep data verifiably encrypted end to end. This allows users to deploy LLMs and coding assistants that are hosted in the cloud while making sure no third party can access the prompts.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Powerful LLMs, e.g., Llama 3.3 70B and Mistral 7B<\/li>\n\n\n\n<li>Coding assistants, e.g., Code Llama and Codestral<\/li>\n\n\n\n<li>End-to-end prompt encryption<\/li>\n\n\n\n<li>Verifiable security through remote attestation<\/li>\n\n\n\n<li>Standard, OpenAI-compatible API<\/li>\n<\/ul>\n\n\n\n<p>Together, Capgemini and Edgeless Systems are already bringing exciting confidential AI use cases to life.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-case-1-confidential-ai-for-public-administration\">Case 1: Confidential AI for public administration<\/h2>\n\n\n\n<p>In the German public sector, the demographic change will soon lead to many unfilled positions and capability gaps. GenAI applications can support the work of civil servants, automate administrative tasks and help to reduce labor shortages. For example, the IT provider of the largest German state (IT.NRW \u2013 Landesbetrieb Information und Technik NRW) has contracted Capgemini to develop an \u201cAdministrative AI Assistant\u201d to improve productivity for thousands of administrative employees.<\/p>\n\n\n\n<p>The GenAI application helps in several ways, including by summarizing text or supporting research assistants with RAG (Retrieval Augmented Generation). However, there aren\u2019t enough GPUs available on-premises to support inference (the process whereby an LLM receives and responds to a request) and the public cloud isn\u2019t an option for sensitive data. Here, the client uses Privatemode AI for confidential inference in the cloud, serving a Meta Llama 3.3 70B model via a standard OpenAI-compatible API. So while all the heavy processing is done in the cloud, all the user data is encrypted end to end.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2025\/04\/picture-4.png?w=960\" alt=\"The diagram shows a hybrid architecture for LLM-based assistants as deployed in Germany. The user interacts with a front end that connects with other applications and databases inside the on-premises data center, and with the confidential \u201cAI-as-a-service\u201d provided by Edgeless Systems which is located externally.\" class=\"wp-image-1116350\"\/><\/figure>\n\n\n\n<p><em>Figure 4: Hybrid architecture for LLM-based assistants with Confidential \u201cAI-as-a-service\u201d for inference (blue box).<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-case-2-confidential-coding-assistants-for-sensitive-applications\">Case 2: Confidential coding assistants for sensitive applications<\/h2>\n\n\n\n<p>As Capgemini is one of the largest global custom software developers, it\u2019s also responsible for protecting code and developing sensitive applications, including for security agencies. Software development projects are handled fully on-premises due to regulations, which makes integrating state-of-the-art coding assistants that require scalable GPU infrastructure a challenge. <\/p>\n\n\n\n<p>Together, Capgemini and Edgeless Systems integrate AI-based confidential coding assistants with end-to-end encryption for developing sensitive, proprietary code. With Privatemode AI, Capgemini can also improve the experience for developers by allowing them to use modern coding assistants in a sensitive environment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-confidential-ai-is-the-future-of-ai-in-regulated-industries\">Confidential AI is the future of AI in regulated industries<\/h2>\n\n\n\n<p>It\u2019s evident that the discussion about digital sovereignty is especially relevant in the context of AI. Critical infrastructures and regulated industries can largely benefit from GenAI applications but also require secure handling of sensitive data to boost innovation and digitalization. The future of AI therefore lies largely in confidential AI. And by enabling use cases with end-to-end data protection at scale, Capgemini and Edgeless Systems are leading the way.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-get-the-future-you-want\">GET THE FUTURE YOU WANT<\/h2>\n\n\n\n<p>Capgemini and Edgeless Systems have already implemented confidential AI use cases in critical infrastructures, public administration and healthcare. Let our experience inspire you and bring your data together with AI innovation.<\/p>\n\n\n\n<p><strong>Additional links:<\/strong><\/p>\n\n\n\n<p>Edgeless Systems: <a href=\"https:\/\/www.edgeless.systems\/\" target=\"_blank\" rel=\"noreferrer noopener\">www.edgeless.systems<\/a><\/p>\n\n\n\n<p>Privatemode AI: <a href=\"http:\/\/www.privatemode.ai\" target=\"_blank\" rel=\"noreferrer noopener\">www.privatemode.ai<\/a><\/p>\n\n\n\n<p>Nvidia blog post on Privatemode AI (2024): <a href=\"https:\/\/developer.nvidia.com\/blog\/advancing-security-for-large-language-models-with-nvidia-gpus-and-edgeless-systems\/\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/developer.nvidia.com\/blog\/advancing-security-for-large-language-models-with-nvidia-gpus-and-edgeless-systems\/<\/a><\/p>\n\n\n\n<p>Edgeless Systems\u2019 Open Confidential Computing Conference OC3 with presentation by Capgemini and IT.NRW on Confidential AI: <a href=\"https:\/\/www.oc3.dev\/\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.oc3.dev\/<\/a><\/p>\n\n\n\n<p>OC3 presentation: Confidential AI in the Public Sector by Arne Sch\u00f6mann (IT.NRW) and Maximilian K\u00e4lbert (Capgemini): <a href=\"https:\/\/www.youtube.com\/watch?v=hu04kOtJ660\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.youtube.com\/watch?v=hu04kOtJ660<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n\n\n\n\n\n<section class=\"wp-block-cg-blocks-wrapper-people-slider section section--expert-slider wrapper-people-slider undefined\"><div class=\"container\"><div class=\"content-title\"><h2 data-maxlength=\"34\" class=\"people-heading-title\">Authors<\/h2><\/div><\/div><div class=\"slider slider-boxed\"><div class=\"container\"><div class=\"slider-window\"><div class=\"slider-list\">\t\t<div class=\"slide\">\n\t\t\t<div class=\"box\">\n\t\t\t\t<div class=\"row\">\n\t\t\t\t\t<div class=\"col-md-6 col-lg-4 box-img-wrapper\">\n\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.capgemini.com\/in-en\/wp-content\/uploads\/sites\/18\/2022\/07\/1516312072067-1.png\" alt=\"Stefan Zosel\"\/>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"col-md-6 col-lg-8 box-inner\">\n\t\t\t\t\t\t<div class=\"row title-social-media-header\">\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 mbl-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" title=\"Opens in a new window\" href=\"https:\/\/www.linkedin.com\/in\/stefan-zosel-4567461\/?originalSubdomain=de\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 box-container\">\n\t\t\t\t\t\t\t\t<div class=\"box-title\">\n\t\t\t\t\t\t\t\t\t<h3 class=\"people-profile-title\">Stefan Zosel<\/h3>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span>Capgemini Government Cloud Transformation Leader<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 social-box-container dkt-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" title=\"Opens in a new window\" href=\"https:\/\/www.linkedin.com\/in\/stefan-zosel-4567461\/?originalSubdomain=de\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"people-info\">\u201cSovereign cloud is a key driver for digitization in the public sector and unlocks new possibilities in data-driven government. It offers a way to combine European values and laws with cloud innovation, enabling governments to provide modern and digital services to citizens. As public agencies gather more and more data, the sovereign cloud is the place to build services on top of that data and integrate with Gaia-X services.\u201d<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div><\/div><\/div><div class=\"slider-nav\"><button class=\"slider-prev inactive\" aria-label=\"Slider-previous\" tabindex=\"-1\"><\/button><ul class=\"slider-paginator\"><\/ul><button class=\"slider-next\" aria-label=\"Slider-next\"><\/button><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"<p>Confidential AI: How Capgemini and Edgeless Systems allow regulated industries to adopt AI at scale<\/p>\n","protected":false},"author":264,"featured_media":1152158,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"cg_dt_proposed_to":[],"cg_seo_hreflang_relations":"[]","cg_seo_canonical_relation":"","cg_seo_hreflang_x_default_relation":"","cg_dt_approved_content":true,"cg_dt_mandatory_content":false,"cg_dt_notes":"","cg_dg_source_changed":false,"cg_dt_link_disabled":false,"_yoast_wpseo_primary_brand":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","featured_focal_points":""},"categories":[1],"tags":[],"brand":[],"service":[],"industry":[191],"partners":[],"blog-topic":[287],"content-group":[],"class_list":["post-1152153","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","industry-public-sector","blog-topic-data-and-ai"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v22.8) - 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