SAP Chief Financial Officer Dominik Asam told Reuters on Thursday, Oct. 22, that clients are weighing AI model origins and data handling in software decisions as the company widens access to systems from multiple providers.
Asam said clients regularly ask whether data used by a model could be sent to an unsuitable destination. “Could data used by that model be channelled out to end up in places where it shouldn't end up?” he said. He cited export controls and European debates over technology sovereignty as factors bringing governance questions into choices alongside price and performance. He said SAP’s work to understand customers’ requirements across different models is becoming more demanding.
At SAP Connect on Oct. 7, the company said its Joule Studio makes more than 70 models available. SAP product chief Manoj Swaminathan said the selection can help customers avoid relying too heavily on one provider and manage token expenses.
Asam said requirements vary by buyer and task. He told Reuters a customer in the United States might rule out components built using Chinese models, while open-weight software can serve some back-office functions, including SAP’s own, regardless of origin. He said a large national defense department would assess the issue differently from a small business.
Asam also told Reuters that SAP had recently signed agreements with government bodies and defense contractors and wanted model options from regions including Europe and Canada. Reuters did not identify the customers or disclose contract terms. Separately, SAP and Cohere said Feb. 10 they planned to expand their sovereign AI offerings, starting in Canada. SAP said it intends to bring Cohere’s North platform into its Canadian ERP Sovereign Cloud for public-sector and regulated customers seeking control over data location and operations.
SAP’s investor calendar lists its Q4 and full-year 2026 results for Jan. 28, 2027, at 12 a.m. ET (6 a.m. CET), followed by an analyst call at 1 a.m. ET (7 a.m. CET).
