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Inception42 and Microsoft deepen AI tie‑up to keep data in the UAE

The partnership links Inception42’s Catalyst platform with Microsoft Copilot, allowing organisations to build AI agents that run on sovereign infrastructure while employees use familiar Microsoft 365 apps.

By ABU DHABI2 min read

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UAE AI Data Sovereignty: Inception42 and Microsoft deepen AI tie‑up to keep data in the UAE
Inception42 and Microsoft expand AI collaboration, enabling UAE organizations to run AI agents on local infrastructure with Microsoft 365 tools. Photo by knowledgemiddleeast.com
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  • 1Inception42’s Catalyst platform now works with Microsoft Copilot, keeping AI data inside the UAE.
  • 2The partnership aims to have AI agents support half of federal government operations within two years.
  • 3Training for 80,000 UAE workers will boost adoption of agentic AI across public and private sectors.

G42’s Inception42 and Microsoft have deepened their AI partnership. The deal lets governments and businesses create AI assistants more easily, while ensuring sensitive data stays inside the United Arab Emirates.

Catalyst integrates with Microsoft Copilot

Under the new agreement, Inception42’s agentic AI platform Catalyst will work directly with Microsoft Copilot. Companies can build AI agents on Catalyst and let employees reach them through Microsoft 365 applications such as Teams, Outlook and Word, without recreating the agents on each system. The integration means a single AI model can serve multiple productivity tools, streamlining daily workflows.

Both parties stress that all data processed by Catalyst remains on sovereign infrastructure located in the UAE. Inception42 said the platform is designed to run in‑country, giving organisations full control over their data and policies.

Catalyst gives governments and enterprises a comprehensive platform to build, govern, and observe their agents ... Demand for agents is moving faster than any single platform can meet on its own.

— Ashish Koshy, chief executive of Inception42

Boosting the UAE’s national AI agenda

The collaboration supports the UAE’s national agentic AI initiative, which targets AI agents handling 50 per cent of federal government operations within two years. The government also plans to train 80,000 workers – from senior officials to junior staff – in using AI agents, a move aimed at embedding the technology across public‑sector functions.

Earlier this year, G42 introduced a new operating model that lets states deploy sovereign AI securely and at scale. The model is intended to give governments full authority over their data, systems and policies, regardless of where the underlying infrastructure resides. Last week, Sheikh Mansour bin Zayed, Vice President and Deputy Prime Minister, reviewed progress on the agentic AI rollout during a ministerial meeting in Abu Dhabi, underscoring the federal push to embed advanced AI capabilities.

By linking Catalyst with Microsoft’s productivity suite, the partnership promises a practical path for organisations to adopt AI while preserving data sovereignty. As demand for AI agents accelerates, the joint effort positions Inception42 and Microsoft to meet the growing needs of UAE enterprises and public bodies.

Frequently asked questions

What is Inception42's Catalyst platform?

Inception42’s Catalyst is an agentic AI platform integrated with Microsoft Copilot, enabling UAE organizations to build AI agents that run on in-country infrastructure.

How does the partnership ensure data stays in the UAE?

The integration keeps all data processed by Catalyst on sovereign UAE infrastructure, giving organizations full control over data and policies.

What UAE government goals does this partnership support?

It supports the UAE’s national AI agenda to have AI agents handle 50% of federal government operations within two years.

How do Microsoft 365 apps connect to Catalyst?

Catalyst AI agents can be accessed via Microsoft 365 tools like Teams and Outlook, streamlining workflows without rebuilding agents on each platform.

What workforce training plans are linked to UAE’s AI goals?

The UAE plans to train 80,000 public-sector workers in using AI agents to embed the technology across government functions.

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Written by

Ashik Ahmed

Reporting from Abu Dhabi — independent, on the ground, and built on local sources.