What is agentic AI, and why is everyone calling it the next frontier?

AI is evolving from answering questions to autonomously planning, executing, and self-correcting complex multi-step workflows.

The answer

Agentic AI represents a paradigm shift from reactive chatbots to autonomous systems that plan, act, observe results, and iterate. Unlike traditional AI that generates single-pass outputs, agentic workflows loop through observation, planning, execution, and refinement - using external tools, APIs, and web searches along the way. OpenAI formalized this with its Responses API and Agents SDK in 2025, Anthropic added tool use and computer use to Claude, and Google's Gemini pushed long-context stateful multi-step tasks. Open frameworks like LangGraph and Microsoft's AutoGen enable developers to build planners, executors, and reviewers. The agentic AI market hit $5.1 billion in 2024 and is projected to reach $47 billion by 2030.

Source: MIT Sloan

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