Most AI Agents Not Yet Autonomous, but Simpler Solutions Deliver Good Value, ISG Study Shows
Data governance and organizational change key to scaling agentic AI, new ISG research finds
Despite high expectations for agentic AI to autonomously perform complex functions, nearly half of agentic production systems today can only trigger predefined actions, according to a new research report from Information Services Group (ISG) (NASDAQ:III), a global AI-focused technology research and advisory firm.
ISG will present the findings of its ISG State of Agentic AI Market report today at the 2025 ISG AI Impact Summit in Boston. The report, based on surveys of enterprises, service providers and software companies, analyzes the most recent developments in agentic AI capabilities to uncover what's currently being delivered, what's on the horizon and the key challenges ahead.
ISG finds that 43 percent of agentic systems in production today are limited to triggering predefined actions only under a restricted range of conditions. Moreover, while there is growing interest in AI agents that can operate on their own, most agentic AI solutions in use today have not removed humans from the loop, the report says. Only 25 percent of current solutions allow agents to operate independently, while 45 percent position AI as advisors supporting human decision-makers or requiring human review and approval for key workflows. Still, these systems are capable of handling challenges that previous generations of technology could not address, the report says.
Agentic AI is the next evolution of AI, introducing systems that can make complex decisions and pursue goals autonomously. Building on generative AI's ability to mine knowledge, agentic AI will enable enterprises to harness the power of AI without direct human prompting. However, advanced applications are still emerging, and most enterprises need to make significant changes before successfully deploying the technology.
"While agentic AI technology is already capable of delivering enterprise value — and continues to mature, unlocking even greater potential — most enterprises are unable to realize that value due to challenges with data readiness and organizational requirements," said Olga Kupriyanova, principal consultant, ISG AI Advisory and co-author of the report.
More than half of organizations struggle with legacy data, and 38 percent of companies engage service providers to improve data management, ISG says. Providers are using agentic AI to help clients meet their data challenges by bringing together disparate data sources. Adding to the challenge, AI does not consume data in the same way as humans or as other data-driven technologies, so enterprises need to change the basic data architecture widely accepted as the standard today.
Organizational readiness for change can also be a barrier, even for relatively successful AI programs. Enterprises need to be prepared to reimagine processes, much as they did during the start of offshoring, the report says.
Service providers are targeting specific industries that have the greatest potential for reinventing large-scale processes with agentic AI. Today, nearly 70 percent of those use cases are in three industries: banking, financial services and insurance, which leads the pack with 30 percent of all use cases, followed by retail with 21 percent and manufacturing with 18 percent.
Providers are giving clients quick results with pre-built solutions for specific processes, but they are also already investing in complex, multi-agent systems, the report says. Leading enterprises have high expectations for future agentic AI systems, going beyond increased profitability to include reinventing products and business models.
"We expect companies to start by adopting agentic AI in IT infrastructure and the back office, then start automating more complex tasks in the front office and for service delivery," said Loren Absher, director of AI Advisory at ISG and co-author of the report. "Within two to three years, the focus will shift from cost efficiency to revenue growth."
The ISG State of Agentic AI Market report draws upon surveys of end users, enterprise interviews and discussions with providers to identify the technology and business requirements for long-term success with agentic AI. Additional information on the report is available on the ISG website.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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