Agentic AI to Command 26% of IT Budgets by 2029

The Rise of Agentic AI: Transforming IT Investment Strategies

The world of artificial intelligence (AI) is evolving rapidly, and one of its fastest-growing sectors is Agentic AI—a class of AI systems capable of acting autonomously to perform complex tasks with minimal human intervention. According to new research published by Gartner, Agentic AI is poised to revolutionize how enterprises allocate their IT budgets, claiming up to 26% of overall IT expenditures by 2029.

That’s a dramatic shift in under a decade, and it reflects the growing trust that organizations are placing in AI agents to support and even lead critical business operations.

What Is Agentic AI?

Agentic AI goes beyond traditional AI and automation. Unlike rule-based automation or narrow AI applications focused on specific tasks, Agentic AI employs more sophisticated approaches including:

• Autonomous decision-making
• Goal-oriented behavior
• Closely mimicking human problem-solving processes

These AI agents are capable of fielding a wide range of challenges such as coordinating workflows, analyzing vast data sets, optimizing supply chains, creating content, and even engaging in negotiations—all without constant human supervision.

Examples of Agentic AI in Action

Agentic AI is already gaining momentum across industries with real-world applications including:

• Customer service agents that adapt dynamically to user needs rather than follow preset scripts
• Financial assistants capable of identifying investment opportunities and making decisions based on live market data
• Marketing automation tools that adjust campaign strategies in real-time

As businesses grow more confident in these systems, they are channeling more of their IT budgets toward implementing and scaling agentic capabilities.

Why This Matters: A New Frontier for Digital Transformation

Gartner’s forecast that Agentic AI will make up over a quarter of IT budgets by 2029 highlights a significant acceleration in the AI adoption curve. This isn’t just a new tool—it’s a remapping of how digital activities are managed within organizations.

The key drivers behind this trend include:

• Efficiency Gains: Automating tasks previously handled by entire teams, reducing costs and errors.
• Employee Augmentation: Supporting staff with AI assistants that improve productivity and free up human capital for strategic tasks.
• Data-Driven Decision Making: Turning complex datasets into actionable, real-time insights through autonomous analysis.

The Emergence of AI Agents as Co-workers

Gartner notes that the shift toward agentic AI is paralleled by a change in workplace psychology and culture: AI is no longer seen just as a tool, but as a collaborator. These new “digital teammates” help execute tasks, provide recommendations, and in some cases, take decisions independently.

As this dynamic evolves, businesses are rethinking job roles and team structures to incorporate AI more seamlessly, leading to the reallocation of IT funds into platforms that facilitate this synergy.

Changing Budget Priorities: From Infrastructure to Intelligence

Traditionally, IT budgets were dominated by spending on infrastructure, cybersecurity, user applications, and legacy systems. However, a noticeable shift is occurring as organizations prioritize:

• AI integration platforms
• Data orchestration tools
• Customizable AI agent development environments

In fact, Gartner predicts that by 2026, over half of large enterprises will be using Agentic AI on a daily basis in at least one business function. That rapid adoption suggests that IT leaders are quickly moving from experimentation to implementation.

Security and Governance Take Center Stage

While Agentic AI introduces exciting opportunities, it also brings heightened challenges around data privacy, governance, and risk management. As agents gain more autonomy, the question becomes: How do organizations ensure accountability and control?

To mitigate these risks, companies are now:

• Forming AI oversight committees
• Investing in explainable and transparent AI systems
• Strengthening cybersecurity protocols specific to AI workflows

According to Gartner, a significant portion of the projected 26% budget allocation will support these safeguards, with CIOs and CTOs treating them as critical infrastructure investments.

Preparing for the Agentic Future

For enterprises looking to stay competitive, the time to prepare for Agentic AI adoption is now. Here’s how organizations can future-proof their strategy:

1. Identify Use Cases with High ROI

Focus on departments or processes where Agentic AI can immediately deliver benefits. This often includes:

• Customer experience and support
• Finance and forecasting
• Content creation and personalization

2. Upskill the Workforce

Employees will need new competencies to work effectively with AI agents. This includes:

• Digital literacy and AI-awareness training
• Prompt engineering and human-AI collaboration workshops
• Advanced data analytics skills

3. Choose the Right Technology Partners

Selecting platforms that support scalable and secure Agentic AI functions is critical. Companies should look for:

• APIs and integration flexibility
• Low-code or no-code AI model design
• Built-in governance and ethical AI frameworks

4. Conduct Readiness Assessments

Before deployment, firms should evaluate their internal infrastructure and data maturity to ensure that Agentic AI systems can operate effectively and safely.

Conclusion: A Paradigm Shift in IT Strategies

The forecasted allocation of 26% of IT budgets toward Agentic AI by 2029 is not just a spending prediction—it’s a signal of a broader paradigm shift in enterprise technology strategy. Autonomous AI agents are no longer futuristic concepts; they are maturing now and quickly becoming indispensable components in modern enterprise ecosystems.

As the line between human decision-making and autonomous computation continues to blur, businesses must prepare to integrate, govern, and leverage Agentic AI to its full potential. Whether it’s through operational augmentation, cost optimization, or driving innovation, Agentic AI will be at the very heart of digital transformation over the next five years.

Enterprises that act now will find themselves not just adapting to the future—but leading it.

Tags:

• Agentic AI
• Artificial Intelligence
• IT Budget
• Enterprise AI
• Digital Transformation