Agentic AI represents a transformative advancement in artificial intelligence, characterised by autonomous, AI-driven digital agents capable of independently executing tasks across diverse workflows without requiring constant human input. Unlike traditional AI systems that rely heavily on pre-programmed rules and human oversight, Agentic AI functions with significant independence, interpreting data, making decisions, and adapting in real-time to changing contexts. This evolution allows organisations to streamline processes, substantially reduce costs, and minimise human labour, enhancing operational efficiency and scalability. According to data from UiPath, around 40% of organisations in India have already embraced Agentic AI, reflecting its rapid integration into business strategies.

These autonomous agents operate with a decision-making capability akin to human intelligence, learning from outcomes and resolving problems with high precision. This shift is reshaping business models, accelerating innovation, and fostering dynamic performance improvements. However, it also introduces new and complex challenges, especially in regulatory compliance and ethical governance. Traditional compliance frameworks were designed around predictable, rule-based systems where decisions and outputs were transparent and easily auditable. In contrast, Agentic AI’s continuous learning and adaptability can obscure the rationale behind decisions, complicating oversight and accountability.

As businesses increasingly deploy Agentic AI, adherence to global data protection standards like the European Union’s GDPR and India’s DPDP Act becomes crucial. These regulations demand transparency, fairness, explainability, and risk mitigation in AI operations, principles that organisations must embed into their AI governance to manage privacy concerns and meet sector-specific compliance requirements. To navigate this intricate landscape, companies are adopting explainable decision-making frameworks that make AI logic understandable, implementing continuous monitoring systems that track behaviour and provide audit trails, and enforcing ethical AI governance to mitigate bias through inclusive data practices and human oversight where necessary.

From a strategic perspective, compliance is increasingly viewed not as a barrier but as a facilitator of growth and trust. The Indian technology solutions provider TECHVED emphasises integrating compliance into the core design and governance of Agentic AI systems to build confidence among regulators, clients, and partners. Their approach includes establishing clear governance structures for traceability, ensuring ongoing accountability through monitoring, maintaining responsible AI frameworks, and transforming organisational processes to support autonomous workflows within compliance boundaries.

The significance of Agentic AI is also underscored by major industry developments. Deloitte has established an Agentic AI Centre of Excellence for the Asia Pacific region, aiming to accelerate adoption through a network of over 6,000 practitioners with support for AI initiatives valued at more than US$1 billion. Additionally, Deloitte India’s strategic partnership with Amazon Web Services focuses on deploying cloud and Agentic AI technologies across key sectors such as financial services, manufacturing, and the public sector, underscoring the growing institutional commitment to this technology.

While enthusiasm for Agentic AI is high, infrastructure readiness remains a critical concern. Cisco’s 2025 AI Readiness Index reveals that leading companies, or ‘Pacesetters,’ which represent a small but growing segment, achieve a 72% higher return on investment by operationalising AI with disciplined strategies and scalable networks. Yet, the report notes that only one in five Indian firms currently possess the network flexibility required for large-scale AI deployment, indicating a gap between ambition and capability.

The rapid adoption of AI more broadly in India, particularly in sectors like retail where 96% of organisations have integrated AI for demand forecasting, inventory management, and customer experience, illustrates the country’s leadership in the AI space. Agentic AI is the next phase of this digital transformation, promising to redefine the operational and strategic landscape for Indian businesses.

Ultimately, the organisations that will thrive in this new era are those that treat responsible AI adoption as central to their business philosophy. Through embedding transparency, accountability, and ethical governance, companies can not only comply with regulatory demands but leverage Agentic AI as a competitive advantage, unlocking efficiencies and fostering sustainable growth in a rapidly evolving technological environment.

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Source: Noah Wire Services