Human exploration of Artificial Intelligence (AI) can be dated back to the 1940s-50s, but it gained unstoppable momentum over the past decade. Today, AI is an integral part of almost every aspect of our existence, from medicine and music to fashion and fitness. And now, agentic AI has marked a new milestone in the evolution of AI, with its market growing exponentially across the globe. So, what exactly is agentic AI, and what are its growth prospects in Indian and foreign markets? Let us take a close look:
What is Agentic AI?
In simple terms, agentic AI is a more advanced version of AI. While AI tools follow pre-programmed instructions and cannot perform complex decision-making on their own, agentic AI can plan and execute tasks independently.
Secondly, most AI tools are single-task specific. On the other hand, agentic AI can effortlessly tackle complex tasks that involve multiple steps. They can also adapt to changing situations, learn and process information, respond to real-time feedback, and even make decisions based on past experiences. It can also achieve long-term goals.
In short, Agentic AI enjoys more autonomy in all areas, be it perception, reasoning, learning or action. Because of its potential to increase productivity and efficiency, Agentic AI is witnessing immense growth and is being adapted to multiple industries. In fact, it is believed that it will transform the way industries function in as less as the coming five years.
Gaining Growth Globally
As per Market Research Report, the global demand for agentic AI is expected to rise from USD 28.29 billion in 2024 to USD 126.89 billion by 2029, marking a Compound Annual Growth Rate (CAGR) of 35 per cent.
The regional forecast up to 2034 is also impressive. According to a market research firm Cervicorn Consulting, North America, especially the USA, is currently leading the global agentic AI market. While its market size was USD 2.17 billion in 2024, the figures are projected to touch USD 70.87 billion by 2034.
The Asia Pacific market, which was valued at USD 1.61 billion last year, is expected to grow to USD 52.68 billion over the next 10 years. This region, which comprises countries such as India, Japan, South Korea, and China, is one of the fastest-growing markets for agentic AI. The reasons include conducive government initiatives and improving digital infrastructure, which are attracting investments.
Redefining Customer Service
While agentic AI is being adapted to almost all industries, it will make the biggest impact on healthcare, retail, logistics, banking, software, and manufacturing, according to the
Global Skill Development Council.
IT service management company Gartner predicts that agentic AI will revamp customer service.
According to them, agentic AI will be part of 33 per cent enterprise software by 2028, and it will be able to address around 80 per cent customer service issues independently by 2029. This is expected to bring down operational costs by as much as 30 per cent.
Agentic AI in India
India is also witnessing an agentic AI boom. According to start-up data platform Tracxn, there are 109 active agentic AI companies in the country. Among this, more than 100 start-ups were born within the past two years. While a majority of these firms are in Karnataka, Maharashtra, Haryana, and Delhi, there are also multiple companies in Tamil Nadu, Telangana, and Uttar Pradesh.
The numbers are expected to rise further. Reason: As per a Deloitte report, over 80 per cent of business establishments in India have shown a tilt towards exploring the possibilities of agentic AI.
A report by The Financial Express substantiates this. While only larger tech firms approached these start-ups for their services earlier, the scenario is changing fast. As per the report, even start-ups, small and mid-sized businesses now want to tap into the potential of agentic AI.
At the beginning of this year, start-ups comprised less than five per cent of the firms that approached B2B companies offering agentic AI solutions. In less than eight months, their number has increased by 30 per cent.
Yet another start-up Zigment, which offers agentic AI support to the phone, chat, and email channels of various companies, says that they too, get around 25 per cent of their projects from SMBs and start-ups.
That’s not all. Several of these start-ups, which earlier focused on B2B applications, is now expanding their horizons into the B2C space — to enter India’s gigantic consumer base, which is showing an increasing interest in AI autonomy.
A Financial Express report quotes Ganesh Gopalan, the co-founder and CEO of Gnani AI, attributing the growing demand for B2C agentic AI solutions to India’s “tech-savvy, mobile-first population who want faster, more intuitive, and hyper-personalised digital experiences in everything from shopping and banking to healthcare and education.”
Indian Agentic AI Pioneers
So, it’s not surprising that most of India’s agentic AI companies are focusing on B2C deliveries. For example, in June of this year, AI company Krutrim introduced Kruti, an agentic AI platform backed by Ola’s Bhavish Aggarwal. It allows users to book cabs, make bill payments, generate images, order food, and conduct thorough research —all for free. The goal is simple: AI autonomy for consumers.
Fractal Analytics, a Mumbai-based AI start-up which launched agentic AI platform Cogentiq, is also entering the B2C space with Kalaido ai (it can generate images from texts in 17 Indian languages), Vaidya ai (a health assistant), and Marshallgoldsmith ai (a coaching platform).
Yet another example is Gnani, which recently created Inya AI, a consumer-centric agentic AI platform. And what does it do? An easy-to-use tool, it enables users to create voice or chat agents in under five minutes, without writing any code. It is multilingual and supports both voice and text.
While many start-ups have already entered the B2C space with agentic AI, more are poised to follow suit. An example is Meritto, which currently creates agentic AI solutions for various educational institutions. According to an FE report, the company believes that its current customer base will naturally expand into the B2C space, addressing problems for parents, students, and learning communities.
‘Manufacturing’ Possibilities
Agentic AI is also projected to transform the manufacturing sector in India. According to a report by ET CIO, the country’s manufacturing market, supported by autonomous AI, is expected to touch USD 1.73 billion by 2030.
Manufacturers can use agentic AI in multiple ways to enhance and scale up production. For example, companies can use its real-time responsiveness to monitor and identify defects on the production line, utilise its learning capability for continuous improvement, and also carry out several actions without human intervention.
According to Intech Business Digital, the global manufacturing sector loses over USD 50 billion annually. Reasons include increasing operational costs, unscheduled downtimes, and slow supply chains. With speed being the new success mantra, Autonomous AI is expected to resolve these issues.
What the Future Holds
Despite multiple challenges, including talent and investment shortages, the future of agentic AI in India looks promising. Though still in initial stages, it is all set to revolutionise sectors such as BPO, manufacturing, healthcare service and interface, human resources, and marketing.