AI Agents: The 'next' Big Thing?

Artificial intelligence (AI) agents are emerging as one of the most transformative advancements in technology today, with the potential to fundamentally change the way we interact with our devices and services. But what exactly are these AI agents, and why are they becoming such a significant focus for the tech industry?

From Siri’s Beginnings to a New Wave of Innovation

More than a decade ago, the creators of Apple’s Siri had a bold vision for the future of technology. They dreamed of an all-encompassing app that could act as a central hub, seamlessly connecting and integrating other apps to handle everyday tasks. This concept, realised in their subsequent project Viv, aimed to remove the need for switching between multiple apps. Planning a holiday, for instance, could be done entirely within one system, covering flights, accommodation, and directions.

While the idea was ahead of its time, Viv fell short of achieving its ambitions and was eventually absorbed into Samsung’s Bixby. However, technological advancements often depend on timing. Fast forward to today, and the rise of large language models has made this once-elusive dream not only possible but increasingly practical.

The New Face of AI in Action

AI’s growing capabilities are being demonstrated by start-ups like Anthropic, which recently unveiled an AI system capable of operating a computer screen much like a human user. In its “Computer Use” demo, the AI system completed tasks such as filling out online forms by pulling data from various sources, simulating the repetitive but essential tasks office workers perform every day.

While this may sound similar to the robotic process automation (RPA) technology used in corporate settings for years, there is a crucial difference. Traditional RPA relies on programming specific workflows for virtual bots to follow, limiting its flexibility. Generative AI, on the other hand, introduces an entirely new level of adaptability and complexity. It can understand broader contexts, make decisions on the fly, and tackle dynamic, unpredictable tasks.

Big Tech’s Foray into AI Integration

Tech giants are also recognising the potential of AI agents to revolutionise user experiences. Apple, for instance, is rolling out its App Intents initiative, which aims to bring AI-powered integrations into the everyday lives of consumers. This system enables developers to adjust their apps so that Apple’s AI can perform tasks across multiple platforms without requiring users to open individual apps.

The implications are profound. Instead of jumping between different applications, users could rely on a centralised AI assistant to access the data or functionality they need. This has the potential to significantly reduce app usage and web traffic, consolidating digital activity into fewer, more efficient interactions.

The Challenges Facing App Developers

For app developers, this shift presents a difficult choice. They must decide whether to adapt their apps to align with the ecosystems of major tech companies, such as Apple and Google, or risk being left out of this AI-powered evolution. While integration with these ecosystems offers the advantage of exposure and usability, it comes at a cost. Developers may lose their direct relationships with users and become increasingly dependent on the larger platforms controlling the AI infrastructure.

Conversely, developers who attempt to maintain independence face the risk of being excluded from the seamless digital ecosystems that AI agents will inevitably dominate. The decision is not simply about technology but about survival in a rapidly evolving market.

Strengthening Big Tech’s Hold

Unsurprisingly, the rise of AI agents is expected to further strengthen the influence of major tech companies. By ensuring their own apps and services work flawlessly with their AI agents, these firms can create a seamless experience for users, offering fewer reasons to stray to rival platforms or apps. This ability to control both the AI infrastructure and its integration with in-house services represents a significant advantage in the competition for user loyalty.

New Challenges for Regulators

This trend presents an additional layer of complexity for antitrust regulators. Already grappling with the dominance of big tech platforms, regulators now face the challenge of understanding how AI agents could further consolidate power. By directing users towards their own services and keeping them within tightly controlled ecosystems, tech giants could become even harder to regulate.

The rise of AI agents highlights a pressing question: how can regulators ensure that these new technologies do not stifle competition or limit consumer choice? With the rapid pace of AI development, this question will need addressing sooner rather than later.

A Growing Market with Uncharted Potential

The numbers behind AI’s growth underscore its transformative potential. According to a 2023 report by Grand View Research, the global AI market was valued at $136.55 billion in 2022. It is expected to grow at a compound annual rate of 37.3% between 2023 and 2030. These figures reflect the surging interest and investment in AI across industries, from healthcare to finance to consumer technology.

AI agents, in particular, are set to play a central role in this growth. Their ability to streamline workflows, reduce inefficiencies, and provide personalised assistance will make them indispensable in both professional and personal settings.

The Future of AI Agents

As AI agents continue to evolve, they are likely to redefine how we engage with technology. They promise to simplify our digital lives, making tasks faster and more intuitive. However, this convenience comes with risks. The centralisation of digital activity within a few dominant ecosystems could limit choice and innovation, concentrating power in the hands of a small number of companies.

Ultimately, the rise of AI agents is not just a technological shift but a societal one. It raises important questions about the balance between innovation and competition, about who controls the digital spaces we increasingly depend on. The AI revolution is still in its early stages, but it is clear that its impact will be far-reaching, reshaping industries, economies, and everyday life.

Whether AI agents will bring about a more streamlined and efficient digital future or deepen existing inequalities of power remains to be seen. What is certain, however, is that they represent one of the most significant developments in technology in decades, and their story is only just beginning.