Microsoft and G42's Inception42 Join Forces on Enterprise Agentic AI
The collaboration aims to solve one of enterprise AI's biggest challenges: governing autonomous agents across multiple platforms.
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G42’s sovereign agentic AI company, Inception42, has collaborated with Microsoft to advance enterprise AI adoption in the Gulf.
The two companies will address the challenge of interoperability through Inception42’s enterprise agent operating system, Catalyst, and Microsoft’s 365 Copilot ecosystem, enabling AI agents built on either platform to operate across both environments without requiring organizations to rebuild applications or migrate infrastructure.
The partnership represents another step in the UAE’s national agentic AI initiative, which aims to have AI agents supporting 50% of federal government operations within two years. It seeks to create a unified operating layer for enterprise AI.
Catalyst serves as an orchestration platform that allows governments and enterprises to develop, deploy, monitor, and govern AI agents, all while processing data within national borders. It can function on-premises, in sovereign cloud settings, or via public cloud infrastructure, connecting to an organization’s existing data sources. This creates an institutional context, which Inception42 refers to as an enterprise “AI Brain.”
Through the new integration, agents developed in Catalyst will be accessible directly through Microsoft 365 Copilot, while agents created inside Copilot can operate natively within Catalyst.
Beyond interoperability, the partnership highlights how data sovereignty is becoming a core design principle for enterprise AI in the Gulf.
Governments across the region increasingly require sensitive data to remain within national borders, especially as AI expands into public services, healthcare, finance, and critical infrastructure.
The architecture combines three layers that organizations have traditionally procured independently: Core42’s sovereign infrastructure through Compass, Catalyst’s agent orchestration capabilities, and Microsoft’s productivity ecosystem.
By bringing these components together, the companies argue that enterprises can reduce operational complexity while maintaining governance and regulatory compliance.
“This integration reflects how sovereignty and interoperability work together,” said Ashish Koshy, CEO of Inception42.
“Catalyst gives governments and enterprises a comprehensive platform to build, govern, and observe their agents. Combined with Copilot, an agent built on Catalyst works in Copilot, and an agent built in Copilot works in Catalyst, with nothing to rebuild and no separate infrastructure to stand up. Demand for agents is moving faster than any single platform can meet on its own, and this puts Inception42 and Microsoft in a position to meet that demand together.”
Microsoft framed the partnership as a response to enterprise demand for AI systems that combine productivity with governance.
“Customers are looking for AI that is powerful, trusted, governed, and practical to adopt,” said Amr Kamel, General Manager of Microsoft UAE.
“This brings together Compass, Core42’s in-country infrastructure, Catalyst’s agent orchestration, and Microsoft 365 Copilot’s productivity experiences, creating a foundation for organizations to scale AI with confidence. By enabling agents to run with data processed in the country and integrated into the tools people use every day, we are helping governments and enterprises accelerate innovation while maintaining control, security, and compliance.”
The announcement also reflects a wider trend across the Middle East, where AI investments are increasingly focused on building the operational infrastructure needed to deploy AI across public institutions and large enterprises.
