Credit: a

Pcps Research

Artificial Intelligence

How Agentic AI Is Transforming Digital Business Models

by

Ashika Shrestha

Artificial Intelligence (AI) has become a core driver of digital transformation across industries. Over the past decade, businesses have relied on traditional AI systems for tasks such as prediction, classification, and automation. However, a new generation of AI known as Agentic AI is now reshaping digital business models more fundamentally. Agentic AI systems can autonomously plan, decide, and act to achieve defined goals, rather than merely supporting human decision-making.

According to Gartner (2024), agentic AI is expected to be embedded in over 30% of enterprise software applications by 2028, signaling a major shift in how digital businesses operate. This article explores what agentic AI is, how it differs from traditional AI, its impact on digital business models, real world case studies, challenges, and future implications.

What is Agentic AI?

Agentic AI refers to AI systems designed to function as autonomous agents. These systems can independently:

  • Set and refine goals
  • Plan multi-step actions
  • Use digital tools and APIs
  • Learn from outcomes and adapt behavior

McKinsey (2023) describes agentic AI as enabling a shift from “AI-assisted work” to “AI-executed workflows,” where AI systems do not just recommend actions but perform them.

How Agentic AI Differs from Traditional AI

Traditional AI systems are primarily reactive and task-specific. They analyze data and provide outputs that humans interpret and act upon. Agentic AI, in contrast, is proactive and goal-oriented.

Key differences include:

  • Decision Authority: Traditional AI supports decisions; agentic AI makes and executes decisions.
  • Task Scope: Traditional AI handles isolated tasks; agentic AI manages end-to-end workflows.
  • Adaptability: Agentic AI continuously learns from feedback loops.
  • Business Role: Agentic AI acts as a digital agent rather than a static tool.

Types of AgenticAI Business Model

  1. The Existing+ model enhances an existing business model by integrating agentic AI to improve efficiency and decision-making without changing core operations. For example, an e-commerce firm using AI to automate customer support and demand forecasting.
  2. The Customer Proxy model allows AI to act on behalf of customers using predefined processes to achieve desired outcomes, such as a finance app that automatically manages budgeting and bill payments based on user preferences.
  3. The Modular Creator model uses agentic AI to dynamically assemble reusable tools and third-party services without a fixed process, like an AI platform that combines content, data, and design modules to create customized marketing campaigns.
  4. The Orchestrator model represents the highest level of autonomy, where AI coordinates an ecosystem of products and services to deliver outcomes—for instance, an AI travel assistant that plans and continuously adapts end-to-end trips across multiple providers.

Uses of Agentic AI

Agentic AI enables outcome-based pricing, AI-as-a-service offerings, and autonomous digital products, fundamentally changing how value is created and captured.

Case Studies

Case Study 1: Klarna (FinTech)

In 2024, Klarna introduced an agentic AI customer proxy model which resulted in

  • Handling approximately 67% of customer inquiries
  • Reduced average resolution time from 11 minutes to 2 minutes
  • Replaced work equivalent to 700 full-time agents
  • Estimated annual cost savings of USD 40 million

This demonstrates how agentic AI can improve efficiency while maintaining service quality.

Case Study 2: Amazon (E-commerce and Logistics)

Amazon uses Orchestral agentic AI systems to autonomously manage inventory placement, demand forecasting, and delivery routing.

  • 15–20% reduction in inventory holding costs
  • Faster delivery times through autonomous logistics decisions
  • Improved warehouse utilization and energy efficiency

Here, agentic AI operates as a self-optimizing system rather than a decision-support tool.

Challenges and Ethical Considerations

Despite its benefits, agentic AI presents several challenges:

  • Loss of Human Oversight: Autonomous decisions may create risks if systems behave unpredictably.
  • Bias and Fairness: AI agents trained on biased data can reinforce inequality.
  • Data Privacy: Continuous data access increases exposure to misuse.
  • Workforce Displacement: OECD (2023) estimates that 27% of jobs may be significantly transformed by AI.

Future Outlook

Looking ahead, experts predict that agentic AI will become a standard feature in digital business platforms. Gartner (2024) forecasts that 15% of routine business decisions will be made autonomously by AI by 2028. Hybrid models combining human judgment with AI agents are expected to dominate.

Demand for AI-literate managers, ethical AI frameworks, and regulatory oversight will continue to grow, making agentic AI a core competency for future business leaders.

About Author

I am Ashika Shrestha, a Level 5 student at PCPS College, currently pursuing a BSc (Hons) in Software Engineering. My academic interests lie in building intelligent systems, robots and IOT. I wrote this article, “How Agentic AI Is Transforming Digital Business Models,” to explore how autonomous AI agents, software architectures, and data-driven decision-making are reshaping how businesses operate, scale, and deliver value

I am grateful to PCPS College for giving me the opportunity to write this blog and explore new learning experiences. This experience has helped me develop my analytical thinking and motivated me to continue learning and growing academically.

About PCPS Research

PCPS Research is a dedicated initiative that places academics and research at the forefront through high-quality articles, blogs, and research publications. Through this platform, PCPS actively promotes and supports students’ research capabilities while also showcasing scholarly work researched and written by PCPS academicians. PCPS Research serves as a knowledge hub where readers can access credible and insightful content, reflecting the college’s commitment to academic excellence and its promise to be one of the leading IT colleges in Nepal, delivering career-focused skills