← Back to Manifesto
Terminology Guide

Agentic AI vs AI Agents

Understanding the distinction that shapes how we build, deploy, and think about autonomous AI systems

The Short Answer

AI agents are individual autonomous entities that complete specific tasks. Agentic AI is the paradigm, architecture, and capability that enables those agents to exist.

AI Agent = The worker
Agentic AI = The capability

WHY THIS DISTINCTION MATTERS

$7.29B
Agentic AI market size 2025
$139B
Projected market by 2034
40.5%
Annual growth rate (CAGR)

Source: Fortune Business Insights

Why the Terminology Confusion Exists

If you've found yourself confused about whether "agentic AI" and "AI agents" mean the same thing, you're not alone. The terms are often used interchangeably in media coverage and marketing materials, but they refer to related yet distinct concepts.

This confusion matters because understanding the distinction helps you make better decisions about AI adoption, communicate more precisely with technical teams, and evaluate AI products more critically.

Academic Clarity: A 2025 arXiv research paper on AI taxonomy formally distinguishes between "AI agents" as modular systems for task-specific automation, and "agentic AI systems" as the paradigm marked by multi-agent collaboration, dynamic task decomposition, and coordinated autonomy.

Defining the Terms: What the Experts Say

What Is an AI Agent?

An AI agent is a single autonomous entity — a software system that can perceive its environment, make decisions, and take actions to achieve specific goals without constant human direction.

"Agents are systems where LLMs dynamically direct their own processes and tool usage, maintaining control over how they accomplish tasks."

"AI systems that can pursue complex goals with limited direct supervision... characterized by complex goal structures, natural language interfaces, and capacity to act independently."

What Is Agentic AI?

Agentic AI refers to the broader paradigm, framework, and capability that enables AI systems to act autonomously. It encompasses the architectures, design patterns, and approaches that make autonomous AI agents possible.

"The pairing of traditional software strengths — such as workflows, state, and tool use — with the adaptive reasoning capabilities of large language models."

"Goal-directed systems that plan, use tools, and maintain state across multi-step tasks with limited supervision."

The Simplest Way to Understand the Difference

🏢

Think of a Company

AI agents are like individual employees — each with specific skills and responsibilities, completing assigned tasks.

And Its Operating Model

Agentic AI is like the organizational structure, management philosophy, and operational framework that enables those employees to work autonomously.

"Agentic AI is the framework; AI agents are the building blocks within the framework."

ISACA

Side-by-Side Comparison

The following table breaks down the key differences between AI agents and agentic AI across multiple dimensions:

AspectAI AgentsAgentic AI
DefinitionA single autonomous entity that performs tasksThe paradigm and capability enabling autonomous AI
ScopeCompletes individual, specific tasksRuns entire workflows to achieve outcomes
ArchitectureSingle-entity system for goal-directed tasksMultiple specialized agents coordinating in workflows
Autonomy LevelExecutes based on predefined capabilitiesMakes real-time decisions without direct human input
AdaptabilityLimited to training data and defined toolsDynamically determines best course of action
ExampleA customer service chatbot that handles inquiriesA system where customer service, billing, and technical support agents collaborate autonomously
Grammatical UsageNoun — "Deploy an AI agent"Adjective/Paradigm — "Build with agentic AI"

Sources: Moveworks, F5, CIO

Real-World Examples: Agents vs Agentic Systems

Understanding becomes clearer when we look at concrete examples of both AI agents and agentic AI systems in production today.

Examples of AI Agents

ChatGPT Agent

Launched July 2025, "thinks and acts, proactively choosing from a toolbox of agentic skills to complete tasks using its own computer."

Source: OpenAI

Claude Code

Connects to command line, modifies codebases, runs tests, and commits to GitHub autonomously. Context window up to 200K tokens.

Source: DigitalOcean

AutoGPT

Open-source AI agent that chains prompts, makes API calls, and handles research, automation, and code generation.

Source: Sintra AI

Examples of Agentic AI Systems

Salesforce Agentforce

Multiple specialized agents (sales, service, marketing) that collaborate across customer journeys with shared context.

Source: Salesforce

Microsoft Copilot Studio

Multi-agent orchestration platform where agents can delegate tasks, share information, and coordinate complex workflows.

Source: Microsoft

Google Agent2Agent (A2A)

Protocol enabling AI agents from different companies to communicate and collaborate, launched with 50+ partners.

Source: Google Developers

When the Terms Are Used Interchangeably

In practice, the terms often overlap — and that's not always wrong. Context matters significantly:

✓ Acceptable Overlap

General discussions about autonomous AI capabilities where precision isn't critical

⚠ Use Caution

Marketing materials and vendor comparisons where imprecise language can mislead

✗ Needs Precision

Technical architecture discussions, procurement decisions, and system design

What Industry Leaders Are Saying

The distinction between AI agents and agentic AI has become increasingly important as the technology matures. Here's how industry leaders characterize the shift:

"The IT department of every company is going to be the HR department of AI agents in the future."

— Jensen Huang, NVIDIA CEO

Source: Atera

"SaaS applications are essentially CRUD databases with business logic. In the future, this logic will migrate to AI agents."

— Satya Nadella, Microsoft CEO

Source: Digit

"Digital labor is a new horizon for business... How we architect our businesses and run our businesses and staff our businesses and think about our businesses will never be the same."

— Marc Benioff, Salesforce CEO

Source: Salesforce

"Agents are proactive — capable of making suggestions before you ask for them... agentic AI has 'agency': the ability to act, and to choose which actions to take."

— Bill Gates

Source: Atera

Enterprise Adoption: The Numbers

Understanding the difference between AI agents and agentic AI matters because organizations are rapidly adopting both:

62%

of organizations already using AI agents

McKinsey, 2025

65%

piloting or deploying agentic AI systems

UiPath, 2025

67%

of CEOs say agents are critical to compete

Fortune/Davos, 2026

$3.8B

raised by AI agent startups in 2024

Warmly AI Statistics

Sources: Warmly AI, Fortune, McKinsey

Key Developments in 2025-2026

The distinction between AI agents and agentic AI has become more significant as standardization efforts mature:

Dec 2024

Model Context Protocol (MCP) Released

Anthropic releases MCP, allowing developers to connect LLMs to external tools in a standardized way — a key inflection point for agentic AI.

Mar 2025

OpenAI Agents SDK

Python-first, open-source framework for rapid development of agentic workflows, establishing a common pattern for building AI agents.

Aug 2025

AGENTS.md Standard

OpenAI releases AGENTS.md, now adopted by 60,000+ projects including Cursor, Devin, GitHub Copilot, and VS Code.

Dec 2025

Agentic AI Foundation (AAIF)

Anthropic, OpenAI, and Block co-found the AAIF under the Linux Foundation, with support from Google, Microsoft, AWS, Cloudflare, and Bloomberg.

Jan 2026

60% Brand Prediction

Gartner predicts 60% of brands will use agentic AI for one-to-one customer interactions by 2028.

Sources: Anthropic, OpenAI, Gartner

Practical Implications for Your Organization

Understanding this distinction has real implications for how you approach AI adoption:

If You Need AI Agents...

  • Focus on specific, well-defined tasks
  • Evaluate tools like ChatGPT, Claude, or AutoGPT
  • Start with single-agent deployments
  • Measure success by task completion rate

If You Need Agentic AI...

  • Think about end-to-end workflow automation
  • Consider platforms like Salesforce Agentforce or Azure AI
  • Plan for multi-agent orchestration
  • Measure success by business outcomes achieved

Frequently Asked Questions

Can I use the terms interchangeably?

In casual conversation, yes — most people will understand what you mean. In technical discussions, procurement decisions, or when evaluating vendors, it's worth being precise. "AI agent" refers to a specific entity, while "agentic AI" describes a capability or approach.

Is ChatGPT an AI agent or agentic AI?

ChatGPT is an AI agent — a single autonomous entity that can complete tasks. The underlying architecture and capabilities that enable ChatGPT to function autonomously represent agentic AI. When ChatGPT Agent uses tools and takes actions on your computer, it's demonstrating agentic AI capabilities through a specific AI agent.

Which should my company invest in first?

Start with AI agents for specific, high-value tasks. As you gain experience and identify opportunities for workflow automation, consider expanding to agentic AI systems that coordinate multiple agents. According to Gartner, 40% of enterprise applications will include task-specific AI agents by 2026.

How does this relate to generative AI?

Generative AI creates content (text, images, code). AI agents use generative AI as their "brain" but add the ability to take actions, use tools, and work toward goals. Agentic AI is the paradigm that combines generative AI with planning, tool use, and autonomous execution.

Key Takeaways

  • 1AI agents are individual autonomous entities (like ChatGPT, Claude, or AutoGPT) that complete specific tasks
  • 2Agentic AI is the paradigm, architecture, and capability that enables autonomous AI agents to exist and work together
  • 3The terms are often used interchangeably in casual discussion, but precision matters for technical and business decisions
  • 4The market is growing at 40%+ annually, with 62% of organizations already using AI agents and 65% deploying agentic AI systems

Experience Agentic AI in Action

At Planetary Labour, we're building AI agents powered by agentic AI principles — systems that can autonomously complete work while you focus on what matters most.

Explore Planetary Labour →

Related Articles