What is agentic AI? Your 2025 guide

Think about the last time you needed to solve a simple problem with a company. Maybe it was returning a shirt or changing a flight. You likely spoke to a chatbot that understood your request, but couldn't do anything for you. It could provide a link, maybe offer an article, but it couldn't take the final step. The conversation was a dead end.

For years, responding has been the limit of AI in customer service. It could chat, but it couldn't act. But what if AI could do more than just talk? What if it could take that next step—and the one after that—to solve your problem all on its own? That’s Agentic AI, and it’s changing CX from a series of conversations into a list of completed tasks.

Agentic AI transforms artificial intelligence from just a communicator into an active problem-solver and performer. The system is empowered to orchestrate workflows, make decisions, and execute multi-step actions on behalf of the customer, without needing human intervention. Agentic AI is expected to handle 68% of all customer service and support interactions with technology vendors by 2028.

Let’s do a deep dive into agentic AI, exploring how it goes beyond communication to perform meaningful actions and extend the reach of CX teams.

What is agentic AI?

At its core, Agentic AI is a tool that doesn't just talk about a problem; it goes to work and fixes it. It identifies objectives, plans sequences of operations, interacts with various systems, and takes concrete steps to achieve the desired outcome. By 2029, eight out of ten common customer service issues will be resolved autonomously by Agentic AI, leading to a 30% reduction in operational costs.

Agentic AI’s main differentiators are:

1. Seeing the big picture: It receives a high-level goal and breaks it down into a series of executable sub-tasks.

2. Tool usage and system orchestration: It can use external tools and integrate with enterprise systems (CRM, ERP, ticketing systems, payment gateways) to gather information, update records, or trigger actions.

3. Working on its own: It performs sub-tasks independent of human direction.

4. Feedback loops and self-correction: It monitors the progress of its actions. If a step fails or new information arises, it can adapt its plan or escalate to a human.

This proactive, execution-driven nature moves AI beyond being just a smart conversational interface. It becomes a true "agent" working on the customer's behalf and becoming a partner your human agents can depend on.

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How agentic AI works

Agentic AI is powered by sophisticated architecture that takes autonomous action and thinks independently. So, how does an AI learn to do this? Think of it like the world's most efficient agent.

1. Advanced natural language understanding (NLU)

First, the agent has to be a great listener. It needs to understand not just what you're saying, but what you mean, even if you're frustrated or unsure. A robust NLU is its foundational layer. It allows the AI to fully comprehend the customer's intent, even when expressed ambiguously. It can:

• Recognize intent: Accurately identifying the underlying goal (e.g., "return a product," "check order status," "change subscription plan").

• Identify information: Pulling out key pieces of information from the conversation (e.g., order numbers, product names, dates, addresses).

• Analyze sentiments: Understanding the customer's emotional state to tailor responses and actions appropriately.

• Generate natural language: Natural language generation allows agentic AI to communicate its progress and ask clarifying questions.

2. Goal planning and task performing

This is where the agentic aspect truly comes into play. Here, the agent makes a plan. When you say, 'I need to get to the airport for my flight,' they don't just point to the door. They think: 'I need to check traffic, book the right size car, and tell the guest when it will arrive. Once the intent is understood, agentic AI uses advanced reasoning capabilities to:

• Formulate a plan: Based on the intent and available tools, agentic AI creates a step-by-step plan to achieve a goal. This might involve retrieving information, doing calculations, updating records, or using an integrated tool.

• Break down complex tasks: A high-level request (e.g., "I am late for my flight") is broken into smaller sub-tasks (e.g., "Identify new routes," "check ticket price details," "notify customer of next steps").

• Dynamic planning: Unlike rigid rule-based systems, agentic AI can dynamically adjust its plan based on new information and unforeseen roadblocks.

3. Tool use and API integration

A great agent has connections. Agentic AI is the same. It connects to various enterprise systems and external APIs, letting it:

• Access databases: Use customer history, product information, order details from CRM, ERP, and inventory systems.

• Start transactions: Process refunds, place orders, update addresses, and change subscription plans by referencing payment or account management systems.

• Build workflows: Launch internal business processes, create tickets, and schedule appointments.

• Send notifications: Send emails, SMS, or in-app messages to customers or internal teams.

• Use external services: Pull real-time data like weather, traffic, or news to better support a customer's issue.

4. Memory and contextual awareness

The best agent remembers you. They know you prefer a window seat and that you were asking about your lost luggage yesterday. Agentic AI is the same, using context to make every interaction feel personal, not transactional. For an AI to act intelligently, it must first be intelligent. This is where the crucial partnership between Contextual AI and Agentic AI comes into play. Agentic AI performs the action, but it relies on Contextual AI to provide the memory and awareness to perform the right action, every single time.First, Contextual AI works to know your customer on a personal level. It integrates their history and awareness into every conversation. This creates a rich, two-part memory:

• Long-term memory: The customer's entire historical journey with the brand.

• Short-term memory: The specifics of the current conversation, including recently provided information and actions taken.

Next, Agentic AI takes this rich context and uses it to perform meaningful actions. It’s the engine that can process a return, update an order, or apply a discount. Because it’s powered by the context, its actions are smarter, faster, and require less effort from the customer.

5. Reasoning and decision-making

Finally, an agent knows how to handle surprises. If the road is closed, they find another route. If the car service is booked, they call another. Similarly, Agentic AI can think on its feet, correcting its course to make sure the job gets done. It goes beyond simple rule-following to incorporate advanced reasoning, often powered by large language models (LLMs) to:

• Choose the right tool: Select the most appropriate API or internal system to use for a given sub-task.

• Handle exceptions: Identify when a situation strays from typical patterns and decide between an alternative approach or escalating to a human agent.

• Prioritize tasks: Figure out the most efficient way to achieve a goal quickly and efficiently.

• Correct itself: If an action fails or returns an unexpected result, the AI can adjust and attempt a different approach before escalating to a human.

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How agentic AI transforms the customer experience

Agentic AI doesn't just improve efficiency; it fundamentally reshapes the entire customer experience process. For CX teams who refuse to compromise between great service and efficiency, Agentic AI unlocks a new level of performance by focusing on four key areas:

1. Faster first contact resolution (FCR)

The best service is the kind that solves your problem right away, without transfers or escalations. Agentic AI makes this the new standard.

• Issue resolution: Instead of simply answering questions or guiding customers to self-service, this technology can understand a customer’s goal and take action across multiple systems. It can resolve complex issues like processing a return or updating a subscription in a single, seamless interaction

• Reduced friction: Customers get their issues resolved instantly, without waiting for an agent, navigating complex IVR menus, or being transferred multiple times. This means customers leave happy.

• 24/7 service: Agentic AI provides round-the-clock support that isn't limited to providing information. Customers can get things done at any time, day or night, which matters hugely when budgeting for headcount.

2. Empowered agents

While simple chatbots can answer questions, Agentic AI provides a fundamentally new kind of support: a partner that can take action. Think of the typical agent’s day: toggling between screens, copying and pasting order numbers, and asking customers to repeat themselves—these are procedural tasks that require time and focus but not necessarily human judgment. With an Agentic AI partner, the dynamic changes. The agent remains the strategic thinker and the empathetic voice for the customer, while the AI becomes their hands for executing tasks within the system. With an AI co-pilot, there’s:

• Task delegation: Agents are freed from manual work because the AI handles these tasks automatically.

• Real-time support: During a customer interaction, it can pull up order histories, suggest next best actions, and even start processing a request before the agent says a word.

• More mental bandwidth : Agents are no longer required to memorize complex, multi-step procedures. They only need to know what the customer needs. This frees up immense mental energy, allowing them to focus entirely on the customer's experience.

3. Service that's one step ahead

The most memorable service moments happen when a company anticipates your needs. By connecting customer data with real-world events, Agentic AI can turn a potential problem into a positive experience.

• Anticipatory service: Agentic AI can predict potential issues and take action before the customer even realizes there's a problem. For example, an airline’s AI sees that your flight is delayed and automatically rebooks you on the next available flight, sending a text with your new boarding pass.

• Personalized journeys: Instead of generic processes, agentic AI can deliver a truly bespoke service experience. A retail AI that sees you just purchased a new bicycle and proactively emails you assembly instructions and a coupon for a helmet.

• Consistency across channels: Since agentic AI is goal-oriented, it ensures that actions started in one channel, like a chat, are seamlessly continued on other platforms like email or a phone call, maintaining full context.

4. Deeper customer insights

Every action taken and every workflow executed by agentic AI generates valuable data. It can provide high-quality, consistent service around the clock. And because it’s built on a foundation of rich customer data, it can deliver answers that are not just accurate, but also personal.

• Actionable analytics: Businesses can gain insights into customer journeys, common friction points, successful resolution paths, and emerging trends by analyzing the actions taken by agentic AI.

• Continuous optimization: These insights allow CX leaders to continuously refine their processes, identify areas for automation, and improve overall service delivery.

• Reduced operational costs: By automating a significant portion of interactions and actions, brands can save labor and infrastructure costs while improving service quality.

The future is here, and it's ready to get to work

The arrival of Agentic AI isn't the end of the story; it’s the beginning of a much smarter one. As this technology matures, the line between a good customer experience and a magical one will begin to blur.

Soon, your AI won’t just react to problems, it will anticipate them. It will see a lost parcel and resend the item before you even know there's an issue. It will notify you that you just bought a new car and proactively send you the most compatible insurance plans. This is hyper-personalization at scale, turning service from a reaction into a relationship.

Agentic AI as part of a unified CX strategy

In the drive for truly exceptional customer loyalty and deep relationships, it's clear that no single AI technology can stand alone. The most powerful change is how different layers of AI work together. A great customer experience needs more than just action. It needs:

• Contextual AI to remember the customer’s history and preferences.

• Conversational AI to understand the customer’s needs with natural language.

• Agentic AI to act on that understanding and resolve the issue.

It’s this combination—the memory, the voice, and the hands—that defines the new era of customer experience.

Gladly Customer AI was built for this reality. By weaving these three threads together, Gladly CX platform empowers brands to do more than just solve problems efficiently. It empowers them to build loyalty. The future isn't about choosing between a human touch and AI automation. It's about using one to make the other more powerful, creating experiences that are both radically efficient and radically personal

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