Agentic AI supply exceeds demand, Gartner warns

The current supply of agentic artificial intelligence (AI) models, platforms and products far exceeds demand, according to new Gartner data.

This supply-demand imbalance will result in agentic AI consolidation and market correction as hype and fear of missing out (FOMO) give way to fundamental economics, the research and analyst giant stated.

Product leaders should view this stage of the agentic AI market as a transition period in which business models are forced to calibrate to transformational technologies.

An evolving agentic AI landscape

“While we see early signs of market correction and consolidation, product leaders should recognize this as a regular part of the product life cycle, not a sign of inevitable economic crisis,” said Will Sommer, senior director analyst at Gartner. “Over the longer term, consolidation will enable industry leaders to develop agentic products that meet the technical and business requirements of customers who are presently struggling to adopt AI agents. 

The impending agentic AI market correction is distinct from speculative bubbles fueled by systemic financial engineering, fraud or policy, Sommer added. “At this point, the underlying product, agentic AI, is sound and the current market correction, where markets rationalize and consolidate, is a regular part of the product lifecycle.”

However, a “speculative bubble” could still form if investment becomes detached from agentic AI’s intrinsic potential to deliver tangible and commensurate economic value.

These evolutions, paired with changing consumer habits, skills and processes, will facilitate the mass adoption of agentic products. The remaining providers, the newly emerged AI incumbents, will attain sustainable growth and eventually the agentic AI market will surpass adoption phase expectations based on tangible metrics of productivity and profit.

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Are businesses investing in agentic AI?

Organizations continue to invest in agentic AI tools. Bank of America analysis found that agentic AI investment could reach a mammoth US$155 billion by 2030.

The PEX Report 2025/26, based on the results of a survey of more than 200 professionals, discovered that three-quarters (70 percent) of respondents consider AI is either “critical” or “very important” to their organization’s strategic goals. Agentic AI is currently used by 40 percent of businesses, while more than half (59 percent) are planning to invest in agentic AI in the next 12 months.

That said, only a third (34 percent) of respondents consider their AI initiatives to be fully aligned with overall business goals, with data quality and availability (52 percent), lack of internal expertise (49 percent), regulatory or legal concerns (31 percent) and resistance to change (30 percent) the greatest barriers to AI adoption.

“Agentic AI is a step in the right direction,” commented Doug Shannon, AI and intelligent automation thought leader. “Companies are rightly drawn to structured systems that enable, empower and embolden their workforce.”

However, agentic AI alone is only the beginning, with many organizations already moving toward multi-agent systems which bring orchestration, auto controls and guardrails to coordinate activity across the enterprise, Shannon added.

“My advice is to avoid spending big too early without first investing in governance, alignment and understanding how these systems impact employees and brand trust. AI agents should help drive understanding and confidence across the business.”

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