What Needs to Happen for Agentic AI to Take Off

Core Insights - The evolution of agentic AI is becoming a focal point for market participants as they seek to understand the next phase following generative AI [1] - Agentic AI has the potential to enhance efficiencies for end users, making it a significant area of interest for investors in AI-heavy ETFs like Invesco QQQ Trust (QQQ) and Invesco NASDAQ 100 ETF (QQQM) [2] Adoption and Market Trends - A report from EY indicates that only 14% of senior leaders have fully implemented agentic AI technology in their organizations, suggesting room for growth in adoption [3] - Increased understanding of agentic AI among corporate leaders could lead to higher adoption rates, positively impacting ETFs like QQQ and QQQM [3][4] Investment and Spending Insights - Organizations investing 5% or more of their total budget in AI are experiencing significant advantages in technology upgrades (82% vs. 62%), customer satisfaction (78% vs. 55%), and cybersecurity (78% vs. 49%) compared to those spending less [5] - Knowledge of expensive corporate products and technologies can accelerate adoption and increase spending, which may benefit QQQ and QQQM [4] Concerns and Regulations - Executives and IT departments express concerns regarding cybersecurity and data privacy in relation to large-scale agentic AI deployment, indicating a need for more robust regulations [6] - A majority (89%) of senior leaders believe that human intervention will remain crucial in the deployment of agentic AI, with 64% expecting to spend more time training employees on responsible AI use over the next year [7]