Understanding Agentic AI and Its Implications for Boards

This document is a report that explains the concept of agentic artificial intelligence (AI) and its significance for corporate governance. It outlines the evolution of generative AI into agentic AI, which is characterized by its ability to autonomously plan tasks and make decisions based on human-defined objectives. The report details how agentic AI differs from traditional automation technologies, such as robotic process automation (RPA) and intelligent automation, by emphasizing its high autonomy and adaptability. Furthermore, it presents the opportunities that agentic AI offers for enhancing productivity, decision-making, and customer service across various industries. The report also addresses the risks associated with deploying agentic AI, including accountability, potential bias, data privacy concerns, and the impact on workforce dynamics. It emphasizes the importance for directors to understand both the transformative potential and the challenges of integrating agentic AI into corporate strategies.