SAP, Europe's largest enterprise software company, announced today (Tuesday) that North, the AI agent platform of Canada's Cohere, is generally available on the SAP Business AI Platform. The launch targets customers with strict sovereignty and data residency requirements: banks, insurers, healthcare organizations and government bodies.
Why it matters
Organizations in regulated industries want to use AI agents but can't send sensitive data to the servers of American AI companies. North lets them run agents inside their own infrastructure, so data never leaves it. The SAP–Cohere partnership began in May 2025, expanded in February to full sovereign AI, starting in Canada, and is also part of SAP's EU AI Cloud, designed to meet European regulatory requirements.
SAP on a roll
The launch follows a strong quarter. According to its October 21 report, SAP's cloud revenue grew 25% at constant currency to about €6.7 billion, and its current cloud backlog reached €24.1 billion, up 28%. According to CEO Christian Klein, 9 of the 10 largest deals in the quarter included AI. The company expects cloud growth to moderate to about 23% in the fourth quarter.
The Israeli angle
SAP has SAP Labs Israel in Ra'anana, one of its most important R&D centers outside Germany, as well as a venture fund that has invested in Israeli companies over the years. For regulated Israeli organizations, such as banks and insurers that work with SAP, the ability to run AI agents without moving data out of the organization could remove one of the biggest barriers to adoption.
