Agentic AI, also known as autonomous AI, represents a significant advancement in artificial intelligence technology. Unlike traditional AI systems that require continuous human input, Agentic AI can autonomously perform tasks by gathering information from its environment, processing it, and making decisions based on that data. These AI agents are designed to be goal-oriented, adaptable, and capable of learning over time, which allows them to operate with a high degree of independence. This autonomy enables them to handle complex tasks and make logical inferences without the need for constant human oversight.

The applications of AI agents are rapidly expanding across various industries. In customer service, AI agents are enhancing user experiences by providing personalized support and automating routine tasks, with an example of booking a flight shown below (Exhibit: 1, Agentic AI illustration).

Exhibit 1: Illustrative Version of a User / Agent Interaction

Source: Stifel Research

In healthcare, they assist in clinical decision-making, patient monitoring, and personalized treatment plans. Financial services leverage AI agents for fraud detection, risk management, and automated trading. Additionally, AI agents are revolutionizing fields like cybersecurity, where they proactively identify and mitigate threats, and in content creation, where they generate and optimize media content.

Looking ahead, the potential of Agentic AI is vast. The market for AI agents is projected to experience significant growth over the next five years, to surpass $10 billion. As these systems continue to advance, they are expected to become even more embedded in our daily routines, executing tasks with enhanced efficiency and precision. We have invested in several enterprise software, cybersecurity, and e-commerce companies in the strategies that are poised to benefit from the widespread adoption of AI agents.