We are entering a new chapter in the artificial intelligence (AI) super cycle. As a result, AI is accelerating the innovation flywheel. The excitement about GenAI is easing off somewhat as the transformative potential of AI agents is moving center stage. AI budgets are pivoting from investments in model training towards support for inference activities. Of course, GenAI is transforming activities like coding, customer service, and marketing. But the real revolution relates to agentic AI. AI agents are no longer conversational overlays but rather execution engines. Yet the agentic transformation is operational, not technical. Business leaders should focus on redesigning decision-making, accountability, and workflow orchestration. AI agents will transform how business leaders think about business processes – with big implications for innovation. This report examines why and how AI agents are impacting your innovation activities by speeding up the innovation flywheel. In our report “10 Steps To Embrace AI For Innovation”, we provide a playbook for preparing your innovation initiatives for agentic AI.
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