The world of finance, one of the sectors most affected by financial technology, is in perpetual change and has continuously evolved as technology develops. Each new innovation has revolutionised the flow of money, types of financial assets and the way financial services or products are delivered through the global economy. The payment system has also evolved significantly over the last few decades, including the use of ATMs, mobile banking and electronic payment systems, which are already changing the face of business for individuals.
However, today, a new technological shift is underway, one that could transform who makes financial decisions at their core. This new type of smart system, designated "Agentic Artificial Intelligence" (Agentic AI), is much more advanced than regular smart technologies. Agentic AI systems differ from regular AI tools in that they act on their own, set goals and make complicated financial decisions with little help from people.
More and more experts are speculating that this marks the beginning of what they call the "Agentic AI Finance Revolution". This revolution could soon see smart digital agents play a major role in managing money, negotiating financial deals and making the best investment decisions for individuals, organisations and even governments.
FROM ALGORITHMS THAT DON'T DO ANYTHING TO FINANCIAL AGENTS THAT DO
For instance, banks have been employing AI technology for a while now. The technology is used to detect fraudulent transactions, assess customer creditworthiness, help traders analyse markets and even support customer service. However, these technologies are just a step towards helping individuals make a decision. The use of agentic AI is a huge step forward. Technology is designed to perform actions similar to those of an agent, such as controlling the economy, analysing financial options and pursuing goals aligned with its objectives. An AI agent will be tasked with ensuring the long-term stability of the financial system. The agent observes interest rates, market trends, inflation predictions and how people spend their money. The system may automatically rebalance the portfolio if better investment opportunities come up.
One of the most interesting things about agentic AI is how it could change the way businesses compete in the financial sector. In the past, banks and other financial institutions used advertising, branding and marketing campaigns to encourage people to buy their products, such as loans, credit cards and savings plans.
THE GROWTH OF MACHINE-TO-MACHINE FINANCE
Artificial intelligence (AI) is increasingly shaping the financial sector, helping institutions generate insights from data, measure performance, make predictions and carry out real-time calculations. It is also transforming customer service and how information is accessed and used. In simple terms, AI brings together a range of technologies that enable financial institutions to understand markets and customer behaviour better, learn from digital interactions and respond in ways that increasingly resemble human thinking — only at a much larger scale. This new landscape could lead to a financial system in which autonomous agents transact, negotiate contracts and allocate capital with incredible speed and accuracy. Ways to Include More People in Finance
Supporters of agentic AI say that this technology could help make advanced financial services available to more people. Right now, only people with a lot of money can afford to hire professional financial advisors to help them with advanced wealth management strategies. More individuals could receive such assistance through autonomous financial agents. Financial literacy has always been an important factor affecting the ability to use new technology so people can manage their money, savings and investment alternatives and consequently receive the highest return of their investment. However, the use of AI agents reduces this requirement. Moreover, agential AI can support the development of new financial services, enabling individuals to access online banking, credit and investment opportunities.
Despite its positive aspects, the development of agentic AI raises critical concerns. If millions of financial agents make decisions simultaneously, there is a risk that financial markets will be subject to rapid algorithmic reactions, worsening volatility. The question of responsibility is another critical issue. It can be challenging to determine who should be held accountable if an AI agent makes a poor financial decision, such as taking on risky investments or entering into a contract with unfavourable terms. Regulators around the world are increasingly considering how financial systems should be adjusted to accommodate a future in which decision-making will be distributed between humans and autonomous algorithms.
AGENTIC AI: A NEW WAY TO MAKE FINANCIAL DECISIONS
The arrival of agentic financial AI marks the beginning of a new era in financial innovation. Autonomous financial agents could revolutionise how people and businesses manage their finances over the coming decades, compared to electronic trading in the world's financial markets in the late 1900s. Humans might no longer need to keep an eye on the financial markets. Instead, they might be able to rely on autonomous intelligent systems that are always "on", analysing economic trends, negotiating financial contracts and managing capital more efficiently than anything yet conceived. But as technology continues to evolve, the following question becomes increasingly relevant: Are we ready for a financial system in which machines not merely help people make decisions, but make them?
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