Agentic AI: Changing the Economy and Finance with Ronit Ghose

Summary

AI agents are poised to revolutionize personal, financial, and business landscapes, creating a user-centric economy where everyone will have digital 'JARVIS' agents managing everything from finance to health. These agents will empower startups by reducing operational costs and boosting scalability, while also tackling rising threats from bots and deep fakes in the digital space. With AI adoption accelerating, financial services and regulatory bodies face both opportunities and challenges. The future will see an explosion of startups and innovations, all driven by agent-powered AI, requiring new approaches to marketing, governance, and security.

Takeaways

• 😀 Agents are the next step of the user-centric economy, where individuals will have personal agents handling their needs across various sectors like finance, health, and leisure.
• 😀 In the coming years, digital assistants, or 'JARVIS'-like agents, will become as ubiquitous as apps, enabling individuals to have tailored, automated support in all aspects of life.
• 😀 Startups in the AI and agentic field will rise quickly, with a focus on small, agile teams (often two-person or agent-driven) that can scale rapidly due to reduced operational costs.
• 😀 Financial institutions will have to adapt quickly to AI-driven agents to combat rising fraud from bad actors who are already leveraging new technology, like bots and deep fakes.
• 😀 The user-centric economy means individuals will soon have to interact not only with companies but with agents on their behalf, changing how businesses engage with consumers.
• 😀 Large companies and institutions will be slower to adopt AI-driven agents, while consumers will quickly embrace these new technologies in their daily lives.
• 😀 In the financial sector, AI agents will democratize access to services, as people will no longer need large-scale operations or human involvement for many tasks.
• 😀 Cloud computing, which transformed capital expenditures into operating expenses for companies, is being followed by AI turning human operational costs into software subscriptions.
• 😀 Regulation will play a key role in the adoption of agentic AI, with some regions, like the UAE, potentially moving faster due to progressive policies, while others may be slower.
• 😀 The rise of bots and deep fakes poses a significant threat, with over half of internet traffic today being bots, making it essential for both companies and individuals to implement countermeasures.
• 😀 A new form of fraud is emerging, where voice and video deep fakes are used to trick individuals and institutions, highlighting the need for stronger security systems in the AI era.

Q & A

What is meant by the 'user-centric economy' mentioned in the script?

The 'user-centric economy' refers to a future where individuals, rather than companies, are at the center of economic systems. In this context, agents (AI-driven assistants) will act on behalf of individuals, enabling a more personalized and individual-focused economic experience. These agents could manage everything from finances to health, making decisions based on the needs of the user.

How will agents change the way we interact with technology?

Agents will become integral parts of our daily lives, acting as personal assistants that handle tasks on our behalf. Instead of using apps for specific tasks, we will rely on agents to manage multiple aspects of our lives, such as finance, health, and leisure. This shift will streamline interactions with technology and create a more seamless, user-focused experience.

What role will agents play in startups in the future?

Startups will increasingly rely on autonomous agents to reduce operational costs and increase scalability. With the use of agent-driven systems, new companies can operate with minimal human involvement, turning OPEX (operational expenditure) into a software subscription model, which allows for faster growth and reduced costs compared to traditional models.

Why will agents be adopted faster by consumers than large companies?

Consumers will likely adopt agents more quickly than large companies because consumers are less regulated and more agile. Large corporations, especially in regulated industries like finance, move slowly due to compliance concerns and governance, while individual users can adopt new technologies at a faster pace.

How will the marketing landscape change with the rise of agents?

The marketing landscape will shift significantly. In the future, companies will not market directly to individuals but to their digital agents or smartbots. This will require a change in how products and services are marketed, with a focus on appealing to AI-driven systems rather than just human consumers.

What challenges do financial services face with the rise of agentic AI?

One major challenge is the potential for fraud, as bad actors are quick to adopt new technologies like agentic AI to carry out cyberattacks. Financial institutions must integrate AI into their security measures to counteract the risks posed by sophisticated bots and deep fakes targeting both individuals and corporations.

What are the financial implications of AI and agents in the startup world?

AI and agents will drastically reduce the financial barriers for startups. The transition from capital expenditures (CAPEX) to operational expenditures (OPEX) with cloud-based AI models will lower the costs of starting and scaling businesses. This democratizes entrepreneurship and enables smaller companies to compete with larger, more established firms.

How are bad actors using AI and agents to commit fraud?

Bad actors are using AI-powered bots and deep fake technology to mimic voices, faces, and behaviors of individuals. This allows them to trick people into transferring money or making fraudulent transactions, as seen in cases where voice or video calls from AI-generated impersonations of family members or executives are used to deceive victims.

Why are traditional financial institutions investing in AI and agents?

Traditional financial institutions are investing in AI to stay competitive in the evolving market. As new technologies like agentic AI take hold, banks must adapt to avoid falling behind. This includes adopting AI for customer support, security, and streamlining operations, despite the slow pace of change due to regulations.

What is the significance of having a 'digital Javis' in every person's wallet?

A 'digital Javis' refers to a personal AI assistant that would reside in your digital wallet. This AI would manage various aspects of an individual’s life, such as finances, health, and personal preferences. The concept envisions a future where every individual has their own digital assistant, making tasks easier and more efficient without the need for extensive human intervention.