For over a decade, Artificial Intelligence has led to enormous value across industries globally. Automation of repetitive tasks through pattern recognition is what we refer to as traditional AI. However, as industries mature, we are entering a new era of AI, known as Agentic AI. Compared to conventional AI, which followed a predictable trajectory, the latest Agentic AI technology is much more powerful, enabling us to rethink how humans and AI interact.
Traditional AI: Power Without Memory
Though the Agentic AI technology has taken the world by storm, the role of traditional AI has been instrumental in transforming the digital landscape in enterprises. It is designed to automate predefined scenarios with precision, whether onboarding customers, enhancing the supply chain, or handling customer service interactions. However, a traditional AI system will only do what it is programmed to do because it lacks the contextual understanding and memory required to bring genuine accountability into business scenarios.
These systems work exceptionally well where the outcome is well-defined and structured. They can carry out rule-based actions without needing much human support. For example, traditional AI systems can help prevent fraud by flagging transactions that exceed a certain limit or are made in specific geographic areas. Similarly, it can use logic-based rules to offer customer service or allocate resources. However, it struggles when problems become complex, which ironically is why we need AI in the real world.
Bringing Autonomy and Accountability with Agentic AI
Agentic AI addresses the problems that traditional AI couldn’t fix. These systems don’t just operate on rule-based inputs; they take actions autonomously through reasoning and planning. Agentic AI systems are becoming active partners because they possess memory and the ability to think. For example, a simple command like ‘optimize our supply chain’ is enough for an AI agent to identify the best ways to optimize it and offer suggestions. This is possible through the use of Large Language Models (LLMs), reinforcement learning, APIs, and persistent data structures.
Unlike traditional AI, Agentic AI is self-learning, meaning it learns and adapts through ongoing actions, past data, and trends, making AI agents more flexible and autonomous. This means that your Agentic AI bot is capable of observing, analysing, and deciding the best course of action, while constantly improving itself.
Why the Shift from Traditional to Agentic AI?
We are currently witnessing a transition from traditional to Agentic AI in enterprises, with new AI technology adapting to existing systems and infrastructures. And here’s what led to this much-needed shift:
Beyond Automation – The shortage of skilled professionals and increased labor demand led to the need for automation. But with Agentic AI, enterprises can move beyond automation and invest in AI agents that can collaborate, scale, and make decisions to enhance operational excellence.
Complex Enterprise Environments – Organizations that drive innovation and scale to meet ever-increasing market demands often become increasingly complex. Simple, input- and rule-based systems usually fail to make a significant difference.
Adaption Over Prediction – While traditional AI systems could only predict future outcomes, Agentic AI systems also adapt, just like a human professional.
A Leader’s PoV
Agentic AI isn’t just another trend; it is here to stay and evolve. And those who embrace it will unlock the immense value and advantage it has to offer. Therefore, as leaders, our vision should be clear:
- Adopt Agentic AI as a new class of employees or professionals that directly contribute to the overall growth of your organization
- Regulate the use of AI agents wisely and ensure that there is sufficient oversight
- Ensure that AI agents are aligned with your organization’s values when it comes to end-goals and ethics
- Understand that with significant autonomy comes greater responsibility to prevent costly consequences
Preparing for a New Future with Agentic AI
With the emergence of Agentic AI, businesses must rethink their strategies and invest mindfully in human-AI collaborations. It is essential to note that Agentic AI isn’t here to replace humans; it is here to amplify human potential as an active collaborator. As long as the goals are flexible and human professionals are involved, your Agentic AI system will thrive.
Enterprises are still determining how this new technology fits into their organizations. However, it is undoubtedly the case that Agentic AI will soon become an active partner for professionals in organizations that strive to achieve digital excellence and growth.
To learn more about Agentic AI solutions by Tech Mahindra, visit our website – www.techmahindra.com
