Agentic AI Is Overhyped and Underdelivering

As we race to adopt AI, a new risk is emerging agent washing. According to Gartner, this is the overuse, and misuse, of the term “agentic AI,” , a rebranding of simple automation or chatbots as intelligent agents: Gartner predicts that by 2027, over 40% of agentic AI initiatives will be scrapped due to inflated promises, immature solutions, and a lack of governance.

For CXOs driving digital transformation, this is a growing strategic fault line: investments are underway; reputations are on the line; and without a clear value focus and strong governance, AI risks becoming a drain on both CXO capital and credibility.

From Buzzwords to Business Value

To lead effectively in this environment, CXOs must pivot, and quickly. Forget the AI label and focus on business outcomes. Intelligent agents should be deployed not for novelty but to solve real, high-impact challenges. That calls for a disciplined, value-driven approach:

• Start with strategic intent. Define what your business needs to achieve before selecting AI tools. Prioritize use cases where autonomy drives measurable impact: decision-making, customer resolution, operational triage.

• Redefine autonomy. A true AI agent doesn’t just respond—it reasons, adapts, and acts with minimal oversight. Anything less is automation disguised as intelligence.

• Build in governance. Responsible autonomy requires oversight. Deploy agents with governance baked in: escalation paths, compliance frameworks, and real-time feedback loops.

• Measure what matters. Shift from activity metrics to outcome-based KPIs. Track time saved, cost avoided, satisfaction gains, and uptime improvements.

• Scale what works. Treat every pilot as a proving ground. Double down on what drives value and retire what doesn’t.

From Hype to Impact

As Gartner warns, a growing number of organizations are falling into the trap of agentic AI washing: mislabelling basic automation as intelligent agents. This leads to unmet expectations, stalled projects, and eroded trust. By 2027, over 40% of agentic AI efforts could be abandoned, not for lack of potential, but for lack of substance.

Agentic AI is already transforming operations. But unlocking its full promise requires moving beyond hype to execution. With deep expertise in AI, cybersecurity, digital skilling, and enterprise transformation, we partner with you leaders to steer clear of washing and build AI systems that are governed, outcome-driven, and built to scale.

Recognize the hype, skip the washing, and partner with us to build your agentic AI roadmap.