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What is Agentic AI?

Written by
Scrums.com Editorial Team
Updated on
May 9, 2025

About Agentic AI?

Agentic AI refers to artificial intelligence systems that can autonomously make decisions, take actions, and pursue goals without continuous human intervention. Unlike traditional AI, which typically reacts to inputs in a static, command-response fashion, agentic AI exhibits a form of agency, meaning it proactively plans, self-optimizes, and adapts based on context, user intent, and environmental changes.

These agents are increasingly being developed, shared, and deployed through platforms like an AI Agent Marketplace, where teams can access reusable intelligence components. Many rely on an AI Agent Gateway to securely manage API calls, tool integrations, and access control to operate effectively within enterprise environments.

In the context of AI in software development, agentic AI is a paradigm shift. It introduces systems that go beyond code completion or chatbot-style answers. These AI models can initiate tasks, manage workflows, and interact across tools, enabling more autonomous and intelligent development environments. This evolution is driving new AI use cases for software engineers and accelerating productivity across the software lifecycle.

How Does Agentic AI Work?

Agentic AI systems rely on a combination of advanced AI technologies, including:

1. Large Language Models (LLMs)

At the core of most agentic systems are powerful LLMs that understand and generate human-like language, enabling the agent to interpret instructions and generate nuanced responses.

2. Memory and Context Persistence

Agentic AIs retain information across sessions or task steps, allowing them to build contextual understanding, remember prior inputs, and reason about long-term objectives.

3. Autonomous Task Execution

Unlike static assistants, agentic AI can break down goals into subtasks, schedule their execution, monitor progress, and adapt if something fails.

4. Tool Integration and API Access

These agents are often connected to external tools, APIs, or databases, enabling them to take meaningful action, such as sending emails, writing code, querying data, or triggering deployments.

5. Goal-Oriented Reasoning

Instead of following scripted commands, agentic systems use planning algorithms and heuristics to achieve higher-level outcomes based on broad user prompts.

In short, agentic AI transforms AI from a responsive tool into a proactive digital collaborator.

Benefits of Agentic AI

Autonomous Productivity

Agentic systems can manage multi-step tasks with minimal supervision, making them ideal for DevOps, testing automation, or workflow orchestration.

Enhanced Developer Workflows

For software engineers, agentic AI can move beyond suggesting code to actually writing modules, setting up environments, or running tests autonomously.

Goal-Oriented Software Assistance

Instead of micromanaging each instruction, developers can describe their intent, and the agent will plan and execute the required tasks, even asking for clarification when needed.

Scalable AI Use Cases

Agentic models enable broader AI use cases such as autonomous bug fixing, continuous monitoring, intelligent project scoping, and even roadmap generation.

Customization and Control

Unlike consumer-facing AI, agentic models for enterprise use can be fine-tuned, governed, and audited, aligning with AI software services tailored to specific business rules.

Examples of Agentic AI in Action

  • AutoDev: An autonomous coding agent that accepts a feature prompt, writes relevant code, tests it, and submits a pull request.
  • AI Project Managers: Tools that take Jira tickets and generate task breakdowns, assign developers, and send Slack updates.
  • Customer Support Agents: Persistent AI agents that respond to tickets, reference internal documentation, and escalate when needed — all without manual handoffs.
  • Workflow Orchestration: Multi-modal agents that interface with tools like GitHub, Notion, or AWS to complete workflows such as CI/CD pipelines.

Challenges of Agentic AI

Safety and Alignment

As agentic systems gain autonomy, ensuring their actions align with human values, security standards, and project goals becomes critical.

Memory Management

Balancing context retention with data privacy, especially across long or multi-session tasks, is a complex challenge in enterprise environments.

Debugging Black Box Behavior

Understanding why an agent chose a particular sequence of actions can be difficult, especially when LLMs are involved in decision-making.

Security and Access Control

With agents interacting across tools and systems, robust permissioning and auditing are essential to prevent unintended changes or data leaks.

Integration Complexity

Making agentic AI work across the real tools of software development — not just demo environments — requires robust APIs and standardized orchestration.

Impact on the Development Landscape

From Assistants to Co-Workers

Software teams are evolving from using AI assistants for small tasks to embedding agentic systems as autonomous contributors in the dev cycle.

Modular Engineering

Agentic systems promote a shift toward modular development, where autonomous components collaborate to deliver features independently.

Accelerated Innovation

By offloading routine tasks like documentation, testing, or CI/CD pipeline management, agentic AI frees engineers to focus on architecture and innovation.

Upskilling in Prompt Design

As agents become more proactive, engineers must learn to clearly define outcomes, set boundaries, and evaluate autonomous outputs — a growing frontier in AI and ML in software development.

Other Key Terms

Autonomous Agent
A software entity capable of making decisions and performing actions in pursuit of goals without step-by-step instructions.

Prompt Engineering
The art of crafting inputs for LLMs or agents to achieve desired responses, outputs, or behaviors — essential for working effectively with agentic systems.

AI Orchestration
The coordination of multiple AI agents or models across systems enables complex multi-step workflows.

Multi-Agent Systems
Environments where multiple autonomous agents collaborate or compete to solve tasks, often inspired by swarm intelligence or distributed systems.

AI Governance
The policies, tools, and frameworks used to ensure responsible, ethical, and compliant use of AI systems are especially important in agentic contexts.

FAQ

Common FAQ's around this tech term

How is agentic AI different from traditional AI assistants?
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Is Agentic AI safe to use in production environments?
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Do software engineers need to learn new skills to use agentic AI?
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Can agentic AI replace human developers?
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What are the risks of using agentic AI in development pipelines?
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