In so many cases, all the friction is about how to provision access to local data so the agent can work. So you started with the problem of how do I integrate an agent that is running locally with data that is hosted locally, and you have to deal with a bunch of security, data sensitivity and management issues around that. Now you moved the agent to a remote host - pretty much all your problems are worse: now I have a remote agent reaching into my infrastructure to deal with.
I'd much rather the inverse of this: let me run the agent local but provide secure remote hosted sandboxes. That actually solves a real problem because the sandbox running locally means breaking out of it directly intersects your local infra, whereas if it runs in a managed hosted environment I can leave the provisioning and management of that to someone else.