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Understanding Agentic and Generative AI

Apr 9, 2025

Agentic AI vs. Generative AI

Introduction

  • Recent years have seen a rise in terms such as generative AI (gen AI) and agentic AI.
  • Traditional AI focused on pattern recognition and data analysis.
  • Gen AI creates new content like text, images, audio, etc.

Generative AI

  • Definition: AI that generates original content in response to user prompts.
  • Technologies: Utilizes deep learning models, machine learning, and robotic process automation.

Key Features

  • Content Creation: Able to generate coherent essays, solve complex problems, and aid in software development.
  • Data Analysis: Analyzes vast data to discover patterns and streamline workflows.
  • Adaptability: Adjusts output based on user feedback.
  • Personalization: Offers personalized recommendations, especially beneficial in retail.

Use Cases

  • SEO Content Creation: Generates SEO-optimized content for driving traffic.
  • Marketing and Sales: Assists in lead generation and administrative tasks.
  • Product Design: Speeds up product development cycles.
  • Customer Support: Automates responses for common inquiries.

Agentic AI

  • Definition: AI systems designed to autonomously make decisions and act with limited supervision.
  • Technologies: Combines large language models, NLP, machine learning, reinforcement learning.

Key Features

  • Decision-Making: Assesses situations without/minimal human input.
  • Problem-Solving: Follows a four-step approach of perceiving, reasoning, acting, and learning.
  • Autonomy: Operates independently to perform complex tasks.
  • Interactivity: Adjusts in real-time, as seen in self-driving vehicles.
  • Planning: Executes multi-step strategies for specific goals.

Use Cases

  • Customer Service: Enhances customer interaction and automates data management.
  • Healthcare: Used in diagnostics and patient care devices like smart inhalers.
  • Workflow Management: Automates supply chain operations and logistics.
  • Financial Risk Management: Analyzes market trends for investment decisions.

Trends

Generative AI Trends

  • Augmented Applications: Integration into software to enhance user experience.
  • Synthetic Data: Used for training models where real data is scarce.
  • Deepfake Technology: Raises ethical concerns despite its realistic outputs.
  • Content Personalization: Allows targeted marketing based on data analytics.

Agentic AI Trends

  • Financial Services: Revolutionizes trading with real-time data analysis.
  • Robotics: Used in automation in places like Amazon warehouses.
  • City Planning: Facilitates data-driven urban planning decisions.
  • Human Resources: Provides autonomous decision-making in employee management.

Future Outlook

  • Agentic AI is identified as a top strategic technology trend for 2025.
  • Offers potential opportunities and risks for IT leaders to prepare for future AI innovations.