Rise of Agentic Artificial Intelligence
Since the dawn of 2024, agentic artificial intelligence (AI) has surged in prominence. Unlike generative AI models such as ChatGPT, which produce content based on user prompts and pre-existing data, agentic AI possesses the capability to plan, conduct research, analyze information, and even collaborate with minimal human intervention.
This transformative technology aims to support developers in crafting superior software solutions at reduced costs — a goal that appears to be materializing.
While generative AI has already made significant inroads into business operations across various sectors, agentic AI is now able to undertake substantial portions of work within prominent companies.
However, this advancement may not bode well for all, as some reports indicate that leveraging AI agents incurs costs markedly lower than employing actual personnel.
American enterprises such as Anthropic and Replit have traditionally held a dominant position in the agentic AI landscape. Nevertheless, their Chinese counterparts, including DeepSeek and Zhipu AI, are rapidly advancing.
As reported by CNBC, representatives from Zhipu noted that the primary users of their agentic AI model hail from China and the United States.
This popularity can be attributed in part to the accessibility of Chinese AI agents; whereas most American AI systems are proprietary and necessitate hefty investments, many of their Chinese equivalents are open source — thus available to all.
This effectively free model significantly lowers entry barriers and presents a compelling incentive for companies aspiring to reduce expenses, accelerate product development, and streamline their workforce to opt for Chinese AI technology over domestic alternatives.
The Costs and Implications of AI Agents
A human hand and three robot hands holding interlocking puzzle pieces – Thx4Stock team/Shutterstock
According to a report by Capgemini, 23% of organizations had adopted AI agents by 2025, with numerous companies relying on them to automate extensive tasks across IT, customer service, and financial oversight.
Agentic AI is also heavily utilized in software development, with A16z reporting a 60% spike in new app releases from December 2024 to December 2025.
Despite these advancements, agentic AI has not emerged as a panacea for corporations. Major firms, such as IBM, are grappling with the repercussions of replacing human workers with AI, and integrating this technology can cost organizations nearly double that of generative AI.
Costs can escalate dramatically depending on the complexity of the required agent. According to CX Today, the overhead for a rudimentary AI agent ranges from $10,000 to $50,000, while a consortium of collaborative agents could lead to investments in the millions.
Although the ultra-wealthy may possess billions to invest in AI startups, these costs can pose significant barriers for more modest enterprises.
While opting for open-source agents could alleviate some financial burdens, these programs are not devoid of imperfections.
In a comparative task assigned to a Zhipu AI agent and an American counterpart, experts at CNBC found that Zhipu completed its assignment more swiftly, yet the resultant product lacked the refinement of its American equivalent.
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