Agentic AI: Promise, scepticism, and its meaning for Southeast Asia

The AI Report
Daily AI, ML, LLM and agents news
Are you ready for the next wave of AI? Agentic AI promises to unlock billions in economic value, yet most organizations are just dipping their toes in the water. This gap between immense potential and limited deployment presents a critical challenge and a significant opportunity, especially for enterprises in Southeast Asia. How can your organization harness the power of autonomous AI while maintaining essential human oversight?
Understanding Agentic AI: Beyond Generative Capabilities
Many are familiar with generative AI's ability to create content. Agentic AI takes this a crucial step further. As Jason Hardy, CTO for AI at Hitachi Vantara, explains, "Agentic AI is software that can decide, act, and refine its strategy on its own." Imagine a team of digital experts that learns from experience, coordinates tasks, and operates in real time to pursue specific objectives in dynamic environments. While it may leverage generative AI internally, its primary function is to drive outcomes through autonomous action, not merely produce outputs.
The Drivers and Dilemmas of Accelerated Adoption
Enterprises grapple with overwhelming complexity, escalating risks, and the need for greater operational scale. Agentic AI offers a compelling solution by moving beyond passive analysis to active optimization. It can proactively manage storage, automate governance, anticipate failures, and respond to security threats in real time. This shift from 'insight' to 'autonomous action' is a powerful driver for its accelerating adoption.
However, despite estimates of up to US$450 billion in economic value by 2028, only 2% of organizations have scaled its use. A recent Capgemini study revealed that trust in AI agents is beginning to wane, with nearly three-quarters of executives emphasizing that human involvement in AI workflows is essential. The message is clear: AI agents perform optimally when supported by human oversight, rather than being left completely on autopilot. This is not about replacing people, but augmenting their capabilities and strategic focus.
Strategic Impact: Where Agentic AI Shines Today
For organizations seeking measurable results, IT operations present the most practical starting point. Agentic AI excels at automating routine yet critical tasks such as data classification, proactive storage optimization, and compliance reporting, freeing up valuable team hours daily. Furthermore, its capabilities extend to predictive maintenance, identifying potential issues before they cause costly downtime, and delivering real-time cybersecurity responses that mitigate risks swiftly.
Enhancing Operational Resilience
The impact here transcends mere efficiency gains. Systems can detect and remediate problems before they escalate, optimize resource allocation, and contain security incidents with unprecedented speed. Early adopters are already leveraging agentic AI to strengthen reliability and performance, particularly within complex hybrid IT environments. This practical application demonstrates the technology's immediate relevance for managing both costs and critical business risks.
Charting the Course: A Focus on Southeast Asia
For enterprises in Southeast Asia, successful agentic AI integration begins with a robust foundation. The first priority is impeccable data management: ensure all enterprise data is correctly classified, securely stored, and meticulously governed. Without this clean, organized data bedrock, the value of agentic AI will remain limited.
Building the Right Infrastructure
Secondly, suitable infrastructure is paramount. Agentic AI demands systems capable of supporting multi-agent orchestration, persistent memory for continuous learning, and dynamic resource allocation. Enterprises should consider starting with IT operations, where the technology can proactively prevent outages and optimize performance, establishing a clear ROI before expanding to wider business functions.
The Evolving Workforce: Skills, Leadership, and Adaptation
The rise of agentic AI will fundamentally redefine human roles, shifting focus from task execution to strategic oversight and orchestration. Leaders must learn to establish clear boundaries for autonomous systems and continuously monitor their adherence to ethical guidelines and organizational objectives. For managers, this means less time on administrative burdens and more on mentorship, fostering innovation, and shaping strategy.
Investing in Future Capabilities
HR teams face the critical task of building new governance skills, such as auditing readiness, and designing structures that effectively integrate agentic AI into existing workflows. The World Economic Forum predicts significant job shifts in Southeast Asia, highlighting the urgent need for inclusive, rapid, and strategic reskilling initiatives to empower the workforce for this new era.
Looking Ahead: The Accelerating Pace of Transformation
Many leaders may underestimate the speed and breadth of this transformation. While early benefits are already evident in IT operations—automating classification, optimizing storage, enhancing predictive maintenance, and strengthening cybersecurity response—the long-term impact extends far beyond. Agentic AI is poised to reshape economic models and business structures at a pace faster and more materially than commonly anticipated.
Redefining Business Value and Risk
With projections indicating significant GDP additions from AI, and a high percentage of job roles in countries like Indonesia set for augmentation or disruption, the shift is comprehensive. It will fundamentally alter how businesses are structured, how they manage risk, and how they generate value across all functions, not just IT.
Striking the Balance: Autonomy and Accountability
Agentic AI offers an unparalleled opportunity to lower costs, enhance reliability, and create new revenue streams. However, its true value hinges on a delicate balance between machine autonomy and human oversight. For Southeast Asian enterprises, the challenge is not whether agentic AI will arrive, but how swiftly they can adapt and implement frameworks that blend technological advancement with strong governance, robust infrastructure, and a skilled, prepared workforce. The time to prepare for this autonomous future, where machines take on greater decision-making responsibilities, is now. Start by assessing your data readiness and defining clear oversight protocols.

The AI Report
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