The rise of agentic AI: Shaping the future of business strategy

The era of agentic AI is here, and enterprises can no longer afford to view AI as an optional enhancement. The projected rise in AI investment from 19% to 31% over the next two years (see Exhibit 1) underscores a broader industry shift toward data-driven and AI-centric transformations. This trend of AI leading the technology investment rush surfaced in HFS Research’s recently published AADA Quadfecta Services Horizons study. The baton of being the most vital enterprise technology area is now passed onto AI. What AI can do to reimagine the “ways of working” is unprecedented and will catapult the industry to a whole new direction.

AI is a once-in-a-lifetime opportunity to change and reimagine your ways of working

A 63% increase in AI spending reflects enterprises’ strategic shift, treating AI as essential for driving innovation, agility, and scalable value. Many technologies in the past have promised and, to a certain extent, delivered these benefits, but their scope and magnitude of impact have been limited. Moreover, these technologies have mostly optimized the existing process rather than reimagining it. For example, traditionally, analytics helped contact center agents identify call patterns, suggest responses, understand permutations, and communicate efficiently, leading to gains such as reduced handling times and better call resolution.

With agentic AI coming into the fray, the rules of agent-customer interaction are likely to change:

• Workforce efficiency: Only 40% of agents would be required to handle the workload of the current workforce while attaining improved productivity.
• Real-time contextualization: AI provides instant insights. For example, fashion AI such as Sephora’s AI-powered virtual assistant recommends personalized treatments and cosmetics based on real-time customer conversations, helping agents provide more relevant advice. This has improved customer satisfaction and streamlined the service experience.
• A win-win for both customer and providers: Service providers can command premium rates and offer a reduced cost of ownership over three to five years.
• Lower queue times: Queue times could drop by 30-40%, boosting customer satisfaction. A major telecommunications company implemented LivePerson’s AI to manage customer queries. The system provides real-time insights and context to agents, resulting in a 20% increase in productivity and a 30% decrease in queue times. It enables agents to handle more complex queries effectively, thus reducing customer frustration.

AI will act as a catalyst for new value creation and enabling disruptive business models

Agentic AI is reshaping the enterprise landscape, delivering smarter, hyper-efficient, and highly personalized solutions that drive unprecedented innovation and business value. Even non-digital industries are leveraging AI for new revenue streams and operational efficiencies. This aligns with the Agentic AI HFS 2030 Services & Technology Vision, highlighting the convergence of AI, data, and automation for greater agility and innovation. The trend toward agentification—where AI augments human roles—is fueling investment, blending human expertise with AI-driven intelligence. AI is becoming the cornerstone of modern, data-driven enterprises—essential for future success.

The Bottom Line: With emerging AI areas such as agentic AI, enterprises have a golden opportunity to overcome various debts and reconfigure their operating and business models to become more agile and customer-oriented.

As AI reshapes business landscapes, enterprise leaders cannot afford complacency. Integrating AI seamlessly into existing workflows is a significant challenge. The lack of a robust AI governance framework could expose businesses to security threats and AI bias, jeopardizing their strategic objectives. Enterprise leaders must overcome technical obstacles and address skill shortages and ethical concerns. Prioritize AI investments that align with strategic goals, establish strong data governance practices, and be ready to pivot as AI regulations evolve. Start today or risk falling behind.