Digital Transformation Blog

What is Agentic AI and AI Agents?

Written by Rob Farrell | Feb 17, 2025 11:18:21 AM

Agentic AI is an advanced form of artificial intelligence that can autonomously make decisions, take actions, and continuously learn from interactions without constant human oversight. It represents a significant evolution in AI technology, combining contextual awareness, decision-making capabilities, and adaptability to handle complex, multi-step problems.

According to Salesforce, Agentic AI can be defined as the technology that powers AI agents so they can act autonomously without human oversight. By serving as a comprehensive platform, agentic AI facilitates seamless interaction between AI agents and humans, fostering a collaborative environment where both can work together. This platform has a suite of tools and services to help AI agents learn, adapt, and collaborate so they can quickly handle complex and dynamic tasks. It’s the next frontier of AI known for its ability to operate independently by making decisions, adapting to dynamic situations, setting goals, and reasoning.


Key characteristics of Agentic AI include:

  • Autonomy: It can initiate and complete tasks with minimal human supervision.
  • Reasoning: It uses sophisticated decision-making based on context and trade-offs.
  • Adaptability: It can learn from experiences and adjust its behavior in real-time.
  • Goal-oriented: It can interpret objectives and develop strategies to achieve them.


Agentic AI operates through autonomous AI agents that process vast amounts of data, identify patterns, and work towards assigned objectives. These agents utilize advanced technologies such as machine learning, natural language processing, and large language models to understand context, evaluate options, and adapt their behavior.

The potential applications of Agentic AI are wide-ranging, from optimizing complex workflows and supply chains to providing personalized customer support and streamlining software development. By bridging the gap between static programming and dynamic adaptability, Agentic AI is poised to revolutionize how businesses operate and interact with technology.

According to Bain & Co; Agentic AI is not new—academic researchers have been working on the topic for years. But interest has surged dramatically over the past year. This interest extends beyond hype, with strong engagement from developers and researchers. However, at this point most AI “agents” are rebranded features, early prototypes with limitations, or rules-based, simplistic agents. In 2025 Bain expect to see functional, scalable AI agents emerge across domains. Existing AI applications will become more powerful, and new ones will emerge.

 

 

 

Are AI Agents Practical ?


In the enterprise context, agentic AI is increasingly being integrated into decision-making processes. By 2028, it's predicted that 33% of enterprise software applications will incorporate agentic AI, up from less than 1% in 2024. This shift is expected to automate various tasks and workflows, improving overall efficiency.

For example, agentic AI could autonomously adjust marketing strategies based on real-time performance metrics or manage inventory in response to supply chain disruptions. However, effective implementation requires clear guidelines on autonomy, security, and data privacy to address the governance challenges associated with these autonomous systems.

While agentic AI offers powerful capabilities for handling complex, data-driven decisions at scale, it's important to recognize that optimal decision-making often involves a combination of AI and human judgment. The goal is to leverage the strengths of both agentic AI and human decision-making to achieve the best outcomes in various business and societal contexts.

 

Differences between Agentic AI and Generative AI

When exploring the distinctions between agentic AI and generative AI, it's essential to first establish clear definitions for both concepts.

Generative AI refers to artificial intelligence systems capable of producing original content, including text, images, video, audio, or software code, in response to user prompts or requests. This technology leverages deep learning models and other advanced algorithms to simulate human-like learning and decision-making processes. By analyzing vast amounts of data, these models identify patterns and relationships, enabling them to comprehend natural language inputs and generate high-quality outputs in real-time.

Agentic AI describes systems designed to make autonomous decisions and take action with minimal supervision, often in pursuit of complex goals. This approach combines the flexibility of large language models (LLMs) with the precision of traditional programming. Agentic AI employs various technologies, including natural language processing, machine learning, reinforcement learning, and knowledge representation. Unlike generative AI, which is reactive to user input, agentic AI takes a proactive approach, adapting to changing situations and making context-based decisions. This type of AI finds applications in fields that benefit from independent operation, such as robotics, complex analysis, and virtual assistants.

 

 

Examples of Agentic AI

Here are the examples of Agentic AI, each rewritten as a single paragraph:

Power Design utilizes HelpBot, an AI copilot for IT support, to provide autonomous self-service, integrate data for proactive problem resolution, and automate complex tasks; a key implementation tip is to integrate the AI with various IT systems to enable comprehensive problem-solving capabilities.


Progressive Insurance employs an AI-driven claims handling system to achieve faster claims processing, improve customer satisfaction, and increase operational efficiency; to successfully implement such a system, it's important to ensure the AI can access and analyze all relevant data sources for comprehensive claim evaluation.


Amazon uses an AI system to manage its e-commerce platform, particularly during peak seasons, which allows for seamless scalability and maintained service quality during high-demand periods; a crucial implementation tip is to design the AI system to dynamically allocate resources based on real-time demand fluctuations.


Zendesk enhances its customer support with an AI-powered system, which provides continuous learning and improvement of customer interactions, leading to more accurate assistance over time; implementing robust feedback loops is essential to ensure the AI system learns effectively from each interaction.


Darktrace employs an AI system for cybersecurity monitoring, providing continuous network traffic analysis and real-time threat detection, enabling autonomous responses to cyber incidents; a key implementation tip is to ensure the AI system has comprehensive access to network data while maintaining strict security protocols.


HubSpot integrates AI features into its marketing automation tools for data analysis and reporting, automating routine tasks and allowing marketing teams to focus on strategy development; successful implementation involves integrating the AI system with existing marketing tools and data sources for comprehensive insights.


Propeller Health incorporates AI into its smart inhaler technology for asthma management, enabling real-time data collection, automated alerts to healthcare providers, and pattern tracking; to implement this effectively, it's crucial to ensure robust data privacy measures and seamless integration with healthcare systems.


Advantages of Agentic AI

Speed and Scale: Agentic AI can process vast amounts of data and make decisions much faster than humans, enabling rapid responses to complex situations.

Consistency: Unlike humans, agentic AI doesn't suffer from fatigue, emotional biases, or inconsistency, leading to more reliable decision-making across long periods.

Continuous Learning: Agentic AI can learn from each interaction and outcome, constantly improving its performance without the need for rest or explicit training.

Multi-system Integration: It can seamlessly interact with multiple systems, tools, and databases, coordinating complex workflows that might be challenging for humans to manage simultaneously.

Adaptability: Agentic AI can quickly adjust its strategies based on real-time data and changing conditions, potentially outperforming humans in dynamic environments.


Limitations of Agentic AI

Lack of Human Intuition: While agentic AI excels at data-driven decisions, it may struggle with nuanced situations that require human intuition or emotional intelligence.

Ethical Considerations: Agentic AI may not fully grasp ethical implications or societal norms, potentially leading to decisions that are technically correct but morally questionable.

Creativity and Innovation: Humans still outperform AI in generating truly novel ideas or thinking "outside the box" in unprecedented situations.

Contextual Understanding: Despite advancements, agentic AI may miss subtle contextual cues that humans naturally perceive, potentially leading to misinterpretations in complex social or cultural scenarios.

Accountability: When agentic AI makes decisions autonomously, it raises questions about responsibility and accountability that are more straightforward with human decision-makers.

 

Implementing Agentic AI

The implementation of agentic AI presents several significant challenges for organizations: To address these challenges, organizations need to adopt a measured approach, focusing on clear governance frameworks, robust security measures, and continuous monitoring and adaptation of AI systems. Additionally, investing in employee training and fostering a culture of responsible AI use will be crucial for successful implementation of agentic AI.

 

Technical Challenges

Reliability and Predictability: Agentic AI systems can be unpredictable, potentially leading to inconsistent outputs or unexpected behaviors. This unpredictability makes it difficult to ensure consistent performance across various scenarios.

Adaptability: These systems may struggle to quickly adapt to rapidly changing environments, such as sudden disruptions in supply chains or global crises.

Maintenance Complexity: Maintaining agentic AI systems can be extremely challenging, with up to 95% of automation work occurring after initial implementation. Small changes to high-level prompts can lead to cascading effects throughout the system.


Ethical and Governance Challenges

Ethical Considerations: As AI gains more autonomy, questions arise about how these systems should navigate complex moral dilemmas and who bears responsibility for their actions.

Transparency and Explainability: The opacity of agentic AI decision-making processes challenges traditional notions of transparency, potentially eroding user trust.

Data Privacy and Security: There are concerns about sensitive information being shared with or retained by AI systems, potentially leading to data leaks or unauthorized access.


Operational Challenges

Defining Clear Objectives: Setting precise goals for AI autonomy is crucial to avoid unintended consequences and ensure alignment with intended outcomes.

Human Oversight: Balancing AI autonomy with necessary human intervention and control remains a significant challenge.

Regulatory Compliance: Navigating varying AI regulations across different regions poses difficulties for global implementation.

Strategic Challenges

ROI and Talent: Organizations face challenges in demonstrating return on investment and finding skilled professionals to develop and manage agentic AI systems.

Integration with Existing Processes: Many current agentic AI solutions overlook the importance of integrating with established business processes, potentially leading to operational disruptions.

 

Adapting Agentic AI to changing scenarios

Designing agentic AI systems to adapt quickly to rapidly changing environments requires a multi-faceted approach that combines advanced learning mechanisms, dynamic optimization, and flexible architecture. At the core of this adaptability is the implementation of continuous learning techniques such as reinforcement learning and online learning. These allow the AI to process new data inputs in real-time, recognize emerging patterns, and adjust its behavior accordingly. By learning from trial and error and continuously improving its decision-making based on rewards or penalties, the AI can evolve its strategies to match changing conditions.

To complement these learning mechanisms, agentic AI systems should incorporate dynamic optimization algorithms that enable real-time re-optimization of processes. This includes multi-objective optimization techniques that allow the AI to balance competing priorities and make decisions aligned with overarching organizational goals. Additionally, implementing robust feedback loops and monitoring systems is crucial. These systems track the AI's performance and environmental changes continuously, allowing for automated adjustments and fine-tuning of decisions based on constant improvement and past experiences.

The architecture of adaptive agentic AI systems plays a vital role in their ability to respond to change. A modular design, utilizing a system of specialized AI agents each designed to handle specific tasks, allows for easier updates and modifications. This approach, coupled with robust integration frameworks that connect the AI system to other enterprise systems, enables seamless data flow and adaptation. Such a flexible architecture ensures that the system can be quickly updated or reconfigured in response to new challenges or opportunities.

Finally, enhancing the AI's ability to perceive and analyze its environment is crucial for rapid adaptation. This involves the use of advanced neural networks for improved pattern recognition and decision-making in complex scenarios. Sophisticated natural language processing capabilities ensure the system can understand and respond to nuanced user intents and environmental cues. By combining these elements - continuous learning, dynamic optimization, flexible architecture, and advanced perception - agentic AI systems can be designed to thrive in dynamic environments, adjusting their strategies in real-time based on continuous feedback and evolving conditions.

Closing

As we look to the future, it's clear that agentic AI will play a pivotal role in shaping the business landscape. This advanced form of artificial intelligence, with its ability to make autonomous decisions, adapt to changing environments, and continuously learn from interactions, offers unprecedented opportunities for efficiency, innovation, and personalized customer experiences. While challenges in implementation and ethical considerations remain, the potential benefits of agentic AI are too significant to ignore. As organizations begin to integrate this technology into their operations, they must do so thoughtfully and responsibly.

Key takeaways:

  1. Agentic AI represents a significant leap forward in AI capabilities, offering autonomous decision-making and continuous learning.

  2. Successful implementation requires a focus on data integration, scalability, and robust governance frameworks.

  3. The technology has the potential to transform various industries, from customer service to cybersecurity, but must be balanced with ethical considerations and human oversight.

 

Want to learn more, check out this reading list

HBR: What is  Agentic AI, and How Will It Change Work?

Microsoft: AI agents — what they are, and how they’ll change the way we work

Nvidia: What Is Agentic AI?

IBM: Agentic AI vs. generative AI

IBM: Agentic AI 4 reasons why it’s the next big thing in AI research

Bain: What Is Agentic AI?

Microsoft’s Agentic Frameworks: AutoGen and Semantic Kernel

Microsoft: AutoGen v0.4: Reimagining the foundation of agentic AI for scale, extensibility, and robustness

 

Videos

IBM: What are AI Agents?

Transform Your Business With Agentic AI

NVIDIA AI Building Blocks for Agentic AI

Intro to AI agents

Bloomberg: The Rise of Agentic AI

Andrew Ng Explores The Rise Of AI Agents And Agentic Reasoning | BUILD 2024 Keynote