Companies invest heavily in agentic AI despite limited understanding

Businesses are investing heavily in artificial intelligence tools, particularly agentic AI, despite frequently misunderstanding these technologies. According to Dan Diasio, global AI leader at EY, many vendors are rebranding generative AI products as "agentic AI" to capitalize on market buzz.

The AI Investment Boom

EY's latest U.S. AI Pulse Survey reveals:

• 21% of senior leaders report $10M+ AI investments (up from 16% last year)
• 1/3 anticipate spending $10M+ on AI next year
• Only 14% have fully implemented agentic AI

"Most organizations aren't prepared for agentic AI's demands," Diasio notes, citing challenges with knowledge organization and change management.

Implementation Challenges

Deepankar Mathur of Searce observes:

• Traditional "full-scale adoption" concepts don't fit AI's rapid evolution
• Companies need continuous optimization cycles
• The process becomes an "always-on" operational imperative

Strategies for Success

Experts recommend:

1. Define human-AI partnerships - Create clear task divisions
2. Convert tacit knowledge - Transform employee know-how into usable assets
3. Establish governance frameworks - Address privacy, security and ethical concerns
4. Democratize AI access - Empower employees within security boundaries
5. Create AI centers of excellence - Deploy specialist teams across functions
6. Set realistic goals - Focus on measurable, time-bound objectives

While AI startups raised $104 billion in H1 2025, businesses must bridge the gap between investment and understanding to maximize returns.