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Customer Service AI

What Is Agentic AI? A Customer Experience Leader’s Guide

By Advanced AI EditorJuly 31, 2025No Comments12 Mins Read
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The Gist

AI with initiative. Agentic AI doesn’t just respond. It takes action, and it navigates complex tasks without human handoffs.

Collaboration over replacement. Human agents aren’t going away. They’re becoming orchestrators, guiding AI and handling the moments that matter most.

Trust through oversight. Without clear guardrails and transparency, agentic AI risks moving too fast and scaling mistakes at speed.

As customer expectations rise and support teams face mounting pressure to do more with less, a new generation of artificial intelligence (AI) is stepping in, not just to automate tasks, but to take initiative. Known as agentic AI, these systems are designed to act autonomously, make decisions and carry out multi-step goals without constant human input.

In the context of customer service, that means going beyond chatbots and scripts to AI agents that can troubleshoot issues, complete backend processes and even proactively reach out to customers.

This article explores how agentic AI is poised to redefine the future of customer support, what makes it different from traditional automation and what CX leaders need to know in order to prepare.

Table of Contents

Customer Support Needs Something Smarter Than a Script

Customer service teams today are expected to solve increasingly complex problems, handle more channels and deliver fast, personalized responses, all while staying within tight budgets. Traditional automation tools, such as scripted chatbots and rules-based workflows, can help up to a point. But when a customer issue goes off script or spans multiple systems, these tools often hit their limits.

Why Traditional Automation Falls Short

That’s where agentic AI enters the picture. Agentic AI refers to a new class of artificial intelligence designed to act with autonomy and purpose. It doesn’t just follow rules; it makes decisions, takes initiative and adapts as it works. In customer support, that means faster resolutions, less escalation and AI agents that own it from start to finish.

What Is Agentic AI?

The Four Core Capabilities of Agentic AI

Agentic AI refers to a class of artificial intelligence systems designed to operate with a high degree of autonomy. Unlike traditional automation or rules-based bots that follow predefined scripts, agentic AI can make decisions independently, pursue specific goals and adapt its behavior based on context and feedback. 

Key Differences: Rules-Based Bots vs. Agentic AI

How traditional bots stack up against agentic AI in decision-making, context handling, and task execution.

FeatureRules-Based BotsAgentic AIDecision-makingFollows scripts and rulesMakes autonomous decisions based on goalsContext retentionLimited to session memoryMaintains memory across interactionsTask executionHandles simple, linear tasksPerforms complex, multi-step tasksEscalationOften requires human handoffEscalates based on confidence thresholds

At its core, agentic AI is characterized by four key capabilities:

The first is autonomy; it can act without constant human input and make decisions in real time based on available data. The second is goal-directed behavior; it works toward defined outcomes, navigates complex paths and adjusts strategies as needed. The third is memory; it retains context across interactions, which allows it to handle multi-step tasks more effectively. The final capability is tool use; it can interact with APIs, databases and other digital tools to complete tasks that go beyond simple responses.

While traditional automation focuses on scripts and workflows, agentic AI represents a fundamentally different paradigm, one grounded in reasoning, context and autonomy.

Priya Iragavarapu, VP of data science and analytics at AArete, said that most chatbots today are glorified FAQs. “They don’t think. They just follow scripts,” she said. “Agentic AI is a different species. It’s not a tool; it’s a teammate. This is a leap, not an iteration.” 

Iragavarapu added that agentic AI should not be viewed as an upgrade to existing automation but as a transformation that redefines what it means to “support” a customer.

In customer service, this means the difference between a chatbot that routes the customer’s question to the right department and an AI agent that troubleshoots the issue, retrieves relevant account data, initiates a refund and updates the ticket, all while keeping the customer in the loop.

Where rules-based bots are limited to linear workflows, agentic systems operate more like digital teammates. They’re designed not just to assist but to act, and they close the gap between automation and true problem-solving.

Related Article: Agentic AI: A New, Global Imperative for Customer Experience Leaders

What Does Agentic AI Change About Customer Support?

Real-World Impact and Use Cases

Agentic AI isn’t just a theoretical upgrade; it’s already reshaping the way customer support teams operate. By combining autonomy with contextual awareness and the ability to take meaningful action, these systems are helping businesses resolve more issues on the first touch, reduce operational costs and improve the overall customer experience. 

Benefits of Agentic AI in Customer Support

The CX improvements enabled by agentic AI across resolution speed, personalization, backend automation and proactive engagement.

BenefitCX ImpactAutonomous issue resolutionReduces escalation and speeds resolutionContext-aware supportDelivers more relevant, personalized serviceCross-system task completionImproves efficiency by automating backend processesProactive engagementAnticipates issues before they arise

Here are some of the key ways agentic AI is being used in real-world support environments:

Resolving Issues Without Escalation 

Agentic systems can understand a customer’s problem, navigate through internal systems and take steps to fix it, without needing to pass the issue to a human agent. For example, if a customer reports a billing error, an agentic AI can verify the charge, cross-reference account history and initiate a correction.

Completing Tasks Across Multiple Systems 

Unlike traditional bots that may require human handoff to complete backend actions, agentic AI can log into customer relationship management (CRM) systems, update account details, submit internal tickets and even process refunds or returns.

Anticipating Customer Needs

Drawing from previous interactions and behavioral data, agentic AI can identify likely issues before the customer voices them. For instance, it might proactively notify a customer about a delayed shipment or offer troubleshooting tips based on device usage patterns.

Agentic AI is already delivering measurable results in high-stakes customer interactions across industries. One financial institution, for instance, used agentic technology to create an AI-powered digital coach with substantial business impact.

Jennifer Zuber, product marketing manager at SAS, said, “Since its introduction, the digital coach has driven a 14% increase in customer loyalty scores and boosted engagement with financial wellness content by an average of 50%. In a single year, it contributed to an additional $360 million in wealth deposits and facilitated $650 million in new insurance coverage.” 

Driving Business Growth Through Autonomy

According to Zuber, the system didn’t just improve engagement; it delivered quantifiable gains in both customer loyalty and financial outcomes. This reinforces how agentic AI can enhance both CX and business growth.

The business impact is substantial. By handling a higher percentage of inquiries end-to-end, agentic systems help reduce wait times, free up human agents for more complex tasks and lower overall support costs. Early adopters have reported measurable improvements in customer satisfaction (CSAT) scores, alongside faster average resolution times.

AI Isn’t Replacing Support Teams

From Agents to AI Orchestrators

As agentic AI systems take on more routine tasks, the role of human agents is definitely evolving. But it isn’t disappearing. Rather than replacing support teams, agentic AI is opening the door for a new kind of collaboration where people and machines work in tandem to deliver better outcomes. In this model, agents increasingly serve as supervisors or “AI orchestrators.” They guide automated processes, intervene when empathy when complex reasoning is needed and make sure that the AI operates in alignment with company values and customer expectations.

Learning OpportunitiesView all

Far from displacing human agents, agentic AI is being used to eliminate the most tedious parts of the job so that humans can focus on complex interactions that demand empathy and judgment.

Nikhil Sathe, CTO at Blackhawk Network, said, “The most successful implementations we’ve seen don’t position AI as a replacement technology. Instead, they’re removing the robotic parts of the job so agents can bring more empathy and problem-solving to each interaction.” Sathe added that businesses seeing success with AI in support are those that use it to augment human strengths, not automate them away.

This shift allows support professionals to focus on more meaningful, high-impact interactions, the kind that build and encourage trust, loyalty and long-term value. Instead of spending time on password resets or account updates, agents can devote their attention to customers in crisis, edge cases that require creative problem-solving or situations where a personal touch makes all the difference.

New Era for Your Customer Service Agents

For customer experience leaders, this transformation calls for a new kind of team development. Agents need to become fluent in how agentic systems work, understand their limitations and know when to step in. At the same time, soft skills such as emotional intelligence, adaptability and complex communication become even more critical, as human agents must be better prepared to handle the moments AI isn’t suited for.

It must be reiterated that the rise of agentic AI doesn’t diminish the human role in support; it enhances it. By automating routine tasks and supporting the more complex ones, these systems allow agents to operate at a higher level. Their experience and empathy create the kind of customer moments that technology alone can’t replicate.

Related Article: AI in Customer Experience Works Best With a Human Heart

What Can Go Wrong and How to Prevent It

Key Risks: Hallucinations, Overreach and Bias

As promising as agentic AI may be, it comes with real risks that businesses cannot afford to ignore. These systems operate with a level of autonomy that, if left unchecked, can lead to unintended consequences. AI hallucinations, where AI generates false or misleading information, remain a known issue. There’s also the potential for overreach, where an AI might take action it wasn’t explicitly authorized to, especially when granted access to critical business systems. Ethical considerations, such as biased decision-making or a lack of transparency in how outcomes are reached, further complicate use in sensitive customer-facing environments.

Why Oversight and Transparency Matter

That’s why oversight is not optional; it’s essential. Agentic systems should be designed with clearly defined boundaries and escalation triggers that hand off tasks to human agents when confidence is low or ethical judgment is required. Just as importantly, every action the AI takes should be logged and traceable, with audit trails that allow teams to understand what happened, when and why. The so-called “AI black box” has no place in agentic AI systems.

With greater autonomy comes greater risk. Agentic AI systems must be built and governed carefully to avoid scaling mistakes, introducing bias or eroding customer trust. Said Iragavarapu, “Agentic AI moves fast. If you’re not careful, it can scale mistakes just as fast as it scales service … The biggest risk isn’t that AI breaks; it’s that it works too fast without understanding nuance.” Iragavarapu added that agentic AI must be implemented with strong oversight and governance to avoid ethical missteps or unintended harm, especially in customer-facing roles.

Transparency is key, not only internally but with customers as well. If an AI is handling part of their issue, they deserve to know. Trust in AI-augmented service depends on clarity, accountability and the ability to intervene when something doesn’t go as planned.

How CX Leaders Can Start Preparing Now

Start With the Right Questions

For CX leaders considering agentic AI, preparation starts with asking the right questions. Not every solution that claims to be “agentic” truly is, so it’s important to engage vendors and IT partners in conversations about autonomy, integration capabilities, safety mechanisms and explainability. Leaders should ask how the system handles edge cases, what triggers escalation to human agents and how well it can interact with the business’s existing tech stack.

Choose Low-Risk Pilots First

Identifying where to start is just as critical. Not every process is suited for agentic automation out of the gate. Leaders should look for pilot-ready areas where tasks are repetitive, data is accessible, and a clear outcome can be defined. This could be something like billing inquiries, password resets or order tracking. These lower-risk domains allow teams to build confidence while observing how the AI performs under real-world conditions.

Some businesses are already experimenting with ways to proactively guide agent-AI collaboration, and they use real-time analysis and predictive triggers to inform next steps. Sathe said that one capability he’s particularly interested in is a “whisper feature” where AI analyzes customer sentiment during agent interactions in real time. “This helps the agent eliminate wasted time culling through a knowledge base so they can instead focus entirely on the human conversation,” he said.

Sathe foresees a future where AI doesn’t just automate. It assists actively in the moment, and it empowers agents to stay focused on empathy while AI surfaces timely insights behind the scenes.

Behind the scenes, infrastructure plays a make-or-break role. Agentic AI needs access to customer data, business systems and communication channels through APIs and integrations. If those systems are siloed or outdated, now is the time to modernize. Clean, connected data is what makes truly intelligent automation possible.

Prepare Your People and Systems

Equally important is preparing the people behind the process. Change management and trust-building are essential. Agents need to understand that AI isn’t coming for their jobs; it’s coming to support them. Involving frontline staff early, being transparent about the AI’s role and offering training on how to collaborate with new systems can help reduce resistance and encourage adoption.

Related Article: Silos Sink Your Customer Satisfaction. Here’s What to Do

What’s Next for CX Leaders

Agentic AI marks a turning point in customer support, not just in how issues get resolved but in how support teams evolve. It promises faster, smarter service at scale. But realizing that potential takes more than just new tech. It requires careful rollout, strong guardrails and a mindset that values partnership between people and machines.

For CX leaders ready to modernize their systems and invest in their teams, agentic AI isn’t just about efficiency; it’s about freeing people to do what they do best. That’s to solve tough problems, build trust and create the kind of experiences that turn customers into loyal advocates.

Core Questions About Agentic AI in Customer Support

Editor’s note: As agentic AI moves from concept to contact center, CX leaders need to separate hype from practical strategy. These questions get to the heart of what matters most.



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