Agentic AI or Just Rebranded Automation? Why Companies Blur the Lines

The Agentic AI Hype Train: Are You Really Getting AI?

Nowadays Agentic AI has become the new Blockchain. Every legacy automation tool is suddenly an autonomous agent, but the underlying code hasn't changed. Are these companies truly delivering groundbreaking AI, or are they simply repackaging basic automation with a fresh coat of paint?

It's a question worth asking, especially when strategic investments are on the line. You see, there's a growing trend of tech providers rebranding existing AI functionality as "agentic AI," and it's causing some serious frustration among experts.

So, what's fueling this trend, and why should you care?

Agentic AI vs. Traditional Automation

To understand why companies are rebranding automation, it's crucial to first grasp the core difference between agentic AI and traditional automation.

Think of traditional automation as a pre-written script. When X happens, the system does Y. It's great for routine tasks but lacks the ability to adapt or think for itself. Agentic AI, on the other hand, doesn't follow rigid scripts. It understands goals and figures out the best way to achieve them, reasoning and adapting in real-time.

The practice of exaggerating or misrepresenting how autonomous, intelligent, or capable of independent decision-making an AI system is, making it seem more like an independent “agent” than it truly is, is called agentic washing.

Why the Rebrand?

So, if the difference is so clear, why are companies mislabeling automation as agentic AI? There are a few key reasons:

• Hype and Marketing: The AI space is incredibly noisy right now. Companies are under pressure to appear innovative, and "agentic AI" is a catchy buzzword that attracts attention. It's tempting to rebrand existing products to capitalize on the hype, even if the underlying technology doesn't truly qualify as agentic.
• Lack of Technical Depth: Some vendors simply don't understand the nuances of agentic AI. They may have basic AI functionality, but lack the expertise to build truly autonomous systems that can scale and handle complex decision-making responsibly.
• Oversimplification: It's easy to oversimplify the concept of agentic AI and assume that any AI-powered automation qualifies. However, true agentic AI requires a much deeper level of intelligence, adaptability, and autonomy.

The Risks of Buying into the Hype

Investing in a system that's marketed as agentic AI but is actually just rebranded automation can have serious consequences:

• Strategic Misdirection: If you're making strategic investments based on the promise of agentic AI, you need to know what you're actually getting. Misleading claims can lead to poor decision-making and wasted resources.
• Performance Limitations: Systems that are just repackaged automation tools will break down when faced with scenarios they weren't explicitly programmed for. They can't reason or adapt, which limits their usefulness in complex and unpredictable environments.
• Scalability Issues: True agentic AI is designed to scale and handle complex decision-making responsibly. Rebranded automation often lacks the necessary architecture and governance to operate reliably at scale.

Spotting the Real Deal: Questions to Ask Your Vendor

So, how can you avoid falling victim to the agentic AI hype? Here are some critical questions to ask your vendors:

1. Can you walk me through a recent decision the AI made, and explain how it got there? Don't just focus on the outcome. You want to see the reasoning process behind the decision.
2. How does the system adapt to unpredictable situations? Look for evidence of real-time adaptation and problem-solving, not just pre-programmed responses.
3. How does the system ensure scalability, traceability, and operational robustness? Agentic AI should be able to handle complex decision-making responsibly and at scale.
4. How does the system handle data access and governance? Agentic AI needs access to data, but it's crucial to have controls in place to prevent misuse and ensure compliance.
5. What kind of skills and expertise are required to manage and operate the system effectively? Agentic AI is not plug-and-play. You need a team with the right skills to monitor performance, make adjustments, and troubleshoot issues.

If a vendor can't provide clear and convincing answers to these questions, it's a red flag.

Beyond Efficiency: Focusing on True ROI

Agentic AI isn't just about automating tasks faster. It's about making smarter, more strategic decisions that drive real business value. Don't get distracted by time savings or efficiency gains. Focus on how the AI contributes to key business KPIs like revenue, customer lifetime value, and engagement.

The Agentic AI Example

Despite the hype and potential pitfalls, true agentic AI holds immense promise for transforming various industries. Take HR, for example. here is what hiring a new candidate using an Agentic AI workflow looks like:

1. The agent analyzes company data and team culture to generate a Job Description (JD).
2. It selects the best platforms (LinkedIn, StackOverflow, etc.) and posts the vacancy.
3. The agent monitors the quality of incoming resumes. If they aren't a match, it doesn't just sit there, it updates the JD, tweaks keywords, or shifts the budget to different platforms to attract better talent.
4. Once it secures a pool of high-quality candidates, the agent calls them directly to conduct basic interviews and verify technical skills.
5. Finally, it compiles a comprehensive dashboard for the human HR manager, showing only the pre-vetted, top-tier candidates ready for final talks.

By handling this end-to-end loop, Agentic AI delivers measurable impact:

• Reducing time to hire by up to 10x.
• Cutting HR costs significantly by removing manual screening hours.
• Improving hiring accuracy by learning from every rejection and acceptance.

The Future is Agentic, But Proceed with Caution

Agentic AI has the potential to revolutionize the way we work and make decisions. However, it's crucial to approach this technology with a critical eye and avoid the hype surrounding rebranded automation. By understanding the core principles of agentic AI, asking the right questions, and focusing on true business value, you can unlock the transformative power of AI and gain a competitive edge in the agentic age.

Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor or tax professional before making investment decisions.