Artificial Intelligence has already become a fixture in Enterprise Performance Management (EPM), supporting in areas from planning to reporting and analysis.
While many companies are still familiarising themselves with classic AI functionalities such as predictive models or automated dashboards, a new and more transformative development in the field of AI is already knocking on the door: Agentic AI. (And no, it’s not the name of a new Marvel character.)
What is Agentic AI?
Agentic AI refers to a new generation of artificial intelligence that doesn’t just deliver information: it makes decisions autonomously and initiates actions on its own. Think of it as a digital employee that not only answers questions or analyses data, but independently carries out tasks without needing step-by-step instructions.
A practical example: where a traditional forecasting AI might predict a shift in sales trends based on historical data, an Agentic AI would autonomously adapt the plan in response to a sudden market change, suggest decisions and, with the right authorisation, even implement those changes directly in the EPM system. In other words: Agentic AI actively pursues goals, prioritises tasks, and improves continuously through iterative learning.
Sound fascinating? Or a little daunting? Welcome to the club.
Agentic AI vs “Agents”
Many EPM tools already use so-called “agents”: AI-based features that carry out predefined tasks such as calculating forecasts, updating dashboards, or flagging anomalies. These tools follow instructions – they don’t take initiative.
Agentic AI takes things much further. It is able to conduct simulations independently, optimise budget allocations, and adapt forecasts in real time based on evolving market conditions. It is able to identify what needs to be done, prioritise, and actively pursue objectives.
Put another way: with traditional agents, the human sets the course. With Agentic AI, the machine says, “I’ll take care of that.”
Gen AI vs Agentic AI – What’s the Difference?
To clear up any confusion, let’s briefly distinguish Agentic AI from Generative AI, often referred to as GenAI. Tools like ChatGPT are well known examples: generative AI systems that can produce text, images, code or music. GenAI is creative, text-based, and responds to prompts.
Agentic AI, on the other hand, combines those generative abilities with autonomous, goal-driven logic. It acts, rather than merely reacting.
Where a GenAI might write a descriptive text for a financial report, an Agentic AI would notice a KPI falling outside of the expected range, analyse root causes, simulate scenarios, propose possible actions – and, if permitted, initiate those actions on its own. In short: GenAI is like a virtual copywriter. Agentic AI is a virtual manager.
Are we ready for Agentic AI?
There are clear advantages Agentic AI could bring to EPM tools in the future:
- Proactive intelligence: The AI detects problems before they become apparent, proposes solutions or even implements them directly.
- Automated decision-making: Processes that used to require lengthy alignment discussions are executed in real-time, driven by data.
- Scalability and support: Specialist departments gain time for genuine strategic work, while routine tasks are automated. In that sense, it amplifies the existing benefits of EPM tools.
But there are (still) challenges and risks as well:
- Transparency and control: Who makes the decisions – human or machine? And how is this documented and traceable (the so-called black-box effect)?
- Bias and data quality: Poor data leads to poor decisions, and the more responsibility handed over to AI, the greater the risk.
Agentic AI is a development that will undoubtedly have a strong influence on EPM tools in the future. Companies will need to decide which processes and decisions they are willing to fully delegate to AI, and which must remain under human control.
Conclusion
Agentic AI could represent the next major evolutionary step in EPM – if applied with care and consideration. It promises new capabilities in planning, steering, and decision-making. But as with any technology, it’s all about balance.
Because at the end of the day, it should still be a human who decides when and what the AI is allowed to decide.
Are you interested in learning more about the AI features already available on leading EPM platforms? Or looking for a partner to strategically support your journey towards successful AI adoption in EPM & BI? Do get in touch!
