**India**: Indian generative AI startups attracted $51m in Q2 2025 amid rapid growth in agentic AI adoption. Enterprises benefit from autonomous decision-making but must implement robust governance and employee engagement measures to manage operational, ethical, and workforce risks.
Agentic artificial intelligence (AI) is rapidly emerging as a significant trend within the realm of artificial intelligence, demonstrating vast potential to transform enterprise operations. This new breed of AI systems is poised to enhance workflow optimisation, streamline supply chains, personalise customer interactions, and facilitate cross-departmental collaboration. However, businesses must address a range of challenges—including operational efficiency, workforce management, and ethical considerations—to harness the full capabilities of agentic AI.
A recent report from Nasscom indicates a remarkable surge in funding for Indian generative AI startups. This funding increased more than sixfold quarter-on-quarter, reaching $51 million in the second quarter of the 2025 financial year. The growth is primarily attributed to business-to-business (B2B) applications and advancements in agentic AI. Unlike traditional AI systems, which depend on preset rules or human oversight, agentic AI demonstrates a capacity for analysing complex scenarios, executing decisions in real time, and managing intricate tasks with limited intervention. Its distinguishing characteristics include high autonomy and continuous learning, which could help companies bridge the talent shortfall prevalent in the industry.
Recent research highlights the orchestration of other AI agents as one of the most viable applications of agentic AI. In India, various organisations are already integrating these capabilities into their operations. For instance, Gupshup, a conversational AI platform, has begun offering agentic AI functionalities to notable companies such as Lenskart, Cars24, and Kotak. Notably, food delivery service Zomato recently introduced Nugget, a highly customisable AI-driven customer support platform capable of autonomously resolving approximately 80% of customer queries. Additionally, many leading Indian technology companies are adopting agentic AI, developing in-house capabilities to enhance business processes and efficiency.
Despite its promising attributes, the use of agentic AI is accompanied by several risks that require careful management. The technology’s interaction with extensive datasets raises concerns about data governance and the potential for breaches, which could lead to significant financial repercussions. The autonomous nature of agentic AI—operating with little to no human oversight—can result in operational errors and malfunctions. Furthermore, the prospect of automation may unnerve employees, infringing on job security and consequently impacting morale. To mitigate these risks, organisations can establish robust governance frameworks, ethical AI guidelines, and initiatives aimed at building trust among users.
Research from Infosys outlines the importance of forming an AI governance task force to establish essential ethical parameters, regulatory compliance, explainability, and data privacy. Such measures can alleviate risks linked to agentic AI while facilitating user trust and broader acceptance of AI technologies.
Employee engagement is an essential component in fostering this trust. Actively involving employees in AI-related decision-making processes, providing regular training on AI applications and their implications, addressing job security concerns, and communicating the organisation’s responsible AI initiatives can significantly enhance success in AI implementation.
Moreover, organisations are encouraged to adopt change management strategies that help employees acclimatise to shifts in business processes due to AI integration. This can foster a supportive environment and reduce resistance to change. Establishing an AI foundry can promote innovation by empowering employees to develop new ideas, while also serving as a governance mechanism, ensuring effective data management and ethical deployment of agentic AI.
As enterprises invest in this advanced phase of AI evolution, they stand to gain a competitive advantage through large-scale automation of decision-making, reduction of operational bottlenecks, and the encouragement of continual innovation. By adhering to best practices that address the challenges posed by agentic AI, organisations can unlock its vast potential and move toward a future where intelligent automation redefines business operations.
Source: Noah Wire Services
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