The Age of Agentic AI: Artificial Intelligence as a Co-Pilot

The “Agents of Change” report by Microsoft, led by Dr Chris Brauer from Goldsmiths, University of London, addresses the ‘AI Divide’ and suggests a blueprint for Agentic AI success.

The world is entering a new radical frontier in artificial intelligence—one where AI is no longer just a tool for responding to human input, but an active agent - a co-pilot - capable of making decisions, taking actions, and autonomously optimising processes. We are in the dawn of Agentic AI—a transformative shift that will redefine how we work, do businesses, live, and interact with all the technology world rewritten by AI.

At its core, when we speak about Agentic AI we refer to AI systems that possess a degree of autonomy, capable of perceiving their environment, making informed choices, and executing tasks without constant human supervision. Unlike traditional AI assistants, which rely on explicit commands, agentic AI operates proactively, collaborating with humans and other AI systems to drive outcomes efficiently. It is not just a technological evolution; it is a fundamental change in the way intelligence is embedded into our workflows, organisations, and economies.

“You can build a very rich agentic world, defined by a tapestry of AI agents, which can act on our behalf across our work and life, across teams, business processes, as well as organisations.” — Satya Nadella, CEO, Microsoft

The urgency of this shift cannot be overstated. Businesses that fail to embrace agentic AI risk falling behind in an era where speed, adaptability, and automation define success. AI agents will unlock unprecedented levels of efficiency, innovation, and cybersecurity, driving productivity to new heights across industries. For employees, these intelligent systems promise to relieve digital overload, allowing them to focus on higher-value, creative, and strategic work. Organisations that integrate agentic AI effectively will not only gain a competitive edge but will also cultivate a more engaged and empowered workforce.

However, this new age also comes with critical challenges—chief among them, the AI divide. Just as the digital revolution created disparities between those with and without access to technology, the rise of agentic AI threatens to widen the gap between AI-empowered businesses and those left behind. The accessibility of AI education, infrastructure, and ethical governance will determine whether this transformation fuels prosperity or deepens inequalities. To harness the full potential of agentic AI, businesses and governments must act decisively, ensuring that AI-driven progress is inclusive, sustainable, and beneficial for all.

“Agentic AI can play a key role in removing digital drudgery, giving workers the opportunity to spend more time on creative and value-adding tasks. At Microsoft, we’re helping to build an AI economy, investing in digital skills and tackling the AI divide, all pre-requisites to driving AI-fuelled economic growth for the UK.” — Darren Hardman, CEO, Microsoft UK

The Age of Agentic AI is here, and the choices we make today will define the trajectory of industries, economies, and societies for decades to come. Will we seize this moment to build a future of intelligent collaboration, or will we allow the gap between AI haves and have-nots to widen? The answer lies in how we embrace, regulate, and deploy this groundbreaking technology.

“Every organisation’s AI journey is unique", says Dr Chris Brauer, Director of Innovation at Goldsmiths, University of London. "Agentic AI has the potential to revolutionise operations, increase resilience, and free employees from many routine tasks – if organisations are front footed. There are steps high-, medium-, and low-performing organisations in both the public and private sectors can take today – and this report sets out the blueprint to do just that.”

The 'Agents of change' report by Microsoft

Microsoft’s latest ‘Agents of Change’ report highlights a growing ‘AI divide,’ a gap between those who have a clear AI strategy and those who do not. This divide is already affecting productivity and growth, with organisations that embrace AI seeing better results. 57% of leaders have observed a noticeable productivity gap between employees who use AI and those who do not. 87% of business leaders believe accelerating AI adoption will be important in the next year.

The report reveals that the highest performing businesses and most productive public sector organisations have a clear AI strategy in place and are preparing for the next wave of the technology – agentic AI.

The question now is: How can we create a solid plan, ‘a blueprint’, for long-term AI success? 

The report highlights a significant AI divide, where some organisations are leading in AI adoption while others struggle to integrate AI into their operations.

The report also outlines how Agentic AI can revolutionise industries by taking over routine and repetitive tasks, allowing employees to focus on creative and strategic work. In areas like cybersecurity, customer relationships, and risk management, AI can enhance efficiency, agility, and resilience. But for this transformation to succeed, organisations must overcome barriers and implement clear strategies for AI governance, ethics, and transparency. 

The rise of Agentic AI: Key findings

Microsoft is playing a key role in supporting AI development in the UK. The company has invested £2.5 billion in AI infrastructure, education, and training programmes, helping over 1 million people gain AI-related skills. 

• Academic research outlines opportunity to boost UK growth and improve public services through agentic AI

‘AI divide’ revealed as organisations with clear AI strategies outperforming those that do not, on productivity and profitability

• Senior leaders identify urgent demand for agentic AI to boost productivity and alleviate stretched employees

Artificial Intelligence (AI) is changing the way businesses and public services work. A new type of AI, called agentic AI, can make decisions and take actions on behalf of people, offering big opportunities for growth and efficiency.

High demand for Agentic AI

AI is rapidly becoming a core part of business operations, with 72% of leaders expecting AI agents to be fully integrated into their organisations in the near future. These AI agents will help businesses streamline operations, improve efficiency, and drive innovation. Notably, 21% of leaders believe that full AI integration will happen within the next 12 months, signalling an urgent need for AI adoption. Companies that embrace AI early will have a competitive advantage, while those that delay may struggle to keep up.

The UK risks falling behind

Despite the enthusiasm for AI, there is a growing concern that the UK is not moving fast enough. Only 20% of organisations have successfully scaled AI adoption so far. Many companies recognise AI’s benefits but struggle with a lack of skills, clear strategies, and trust in AI systems. Additionally, 50% of business leaders report a gap between their AI ambitions and actual implementation. Without strong leadership and investment in AI training, the UK could miss out on the economic and operational benefits that AI can provide.

AI as a solution for economic growth and public services

Agentic AI offers significant advantages for businesses, public services, and employees. The research shows that organisations with a clear AI strategy experience better financial performance and increased productivity in the public sector. AI can help automate repetitive tasks, allowing workers to focus on higher-value activities. This can boost innovation, improve customer service, and enhance overall efficiency in both private and public sector organisations.

UK workers are overburdened

Many UK employees are struggling with excessive workloads. The report reveals that 52% of workers feel they are taking on more tasks than one person can handle. Additionally, 36% of business leaders and 25% of employees claim to be doing the work of at least two staff members. AI can help relieve this pressure by automating routine tasks and assisting employees in their daily responsibilities, ultimately leading to a more balanced and productive workforce.

The growing AI divide

A major challenge facing UK businesses is the AI divide—the gap between companies successfully adopting AI and those struggling to implement it. The data shows that nearly half of UK organisations lack a clear AI strategy and are unprepared for AI adoption. Meanwhile, 57% of leaders have observed a noticeable difference in productivity between employees who use AI and those who do not. This divide highlights the need for better AI training and integration across all sectors.

The path to an AI-powered future

Despite these challenges, the future of AI in the UK is promising. The report outlines a clear, three-phase approach for successful AI adoption. By laying strong AI foundations today, businesses can prepare for the agentic AI era and contribute to the UK’s AI-driven economic growth. Microsoft’s roadmap provides businesses with practical steps to harness AI’s full potential, ensuring they remain competitive and support the government’s vision for an AI-powered future.

What is Agentic AI? How does it differ from Traditional AI?

Unlike traditional AI tools that only provide suggestions or insights, agentic AI can make decisions and take actions on its own, reducing human intervention. Microsoft’s CEO, Satya Nadella, describes it as creating a "tapestry of AI agents" that can work across organisations, teams, and daily tasks.

Microsoft has already trained over one million people and is working with the UK government to drive AI-led economic growth and improve public services. However, despite strong interest from business leaders, only 20% of organisations have successfully integrated AI at scale. Many companies struggle with skills shortages, lack of strategy, and uncertainty about regulations, creating a risk that the UK could fall behind in AI adoption.

There are three main types of agentic AI actions:

1. Retrieval Actions – AI fetches data, processes information, and provides answers. For example, a banking chatbot can instantly retrieve a customer’s loan balance after authentication.
2. Task Actions – AI automates routine workflows. For example, in HR departments, AI agents can send welcome emails, create employee profiles, and schedule training without manual input.
3. Autonomous Actions – AI operates independently, making real-time decisions. For example, an autonomous supply chain agent can detect storms that might delay shipments and adjust inventory without human involvement.

These actions enhance efficiency, reduce workload, and improve decision-making, making AI a key asset for organisations looking to scale their operations.

How is AI changing work and business?

AI adoption is increasing, but many workers still feel overwhelmed by their tasks. Research shows that 60% of UK business leaders and 52% of employees believe their workload is more than one person can handle. Additionally, 36% of leaders and 25% of employees say they are already doing the job of two people. This highlights a growing need for AI-powered support to manage work effectively.

Agentic AI can lighten workloads by automating repetitive tasks and allowing employees to focus on higher-value work. For example, in healthcare, AI can assist GPs by retrieving and summarising patient history, scheduling tests, and organising follow-ups. This ensures patients receive better care while reducing the burden on medical professionals. Similarly, in finance, AI agents can detect fraudulent transactions in real-time, potentially saving companies millions of pounds.

For businesses, the benefits of AI adoption are clear. 72% of UK leaders expect AI agents to be fully integrated across their operations, with 21% predicting this will happen within the next year. Moreover, 69% believe AI agents will drive innovation in their industries, and 53% expect AI to boost the UK’s economy. However, companies must act fast, as an AI divide is emerging between those adopting AI and those lagging behind.

The benefits of Agentic AI in the workplace

AI is already making a difference in workplaces, with companies reporting significant productivity gains and employee satisfaction. According to Microsoft’s research:

• 87% of business leaders believe that accelerating AI adoption will be important in the next year.
• 31% say AI-augmented workers are happier and more satisfied in their jobs.
• 38% of UK C-suite leaders believe that employees using AI respond faster to customer needs and are more productive and creative.

By automating repetitive tasks, AI allows employees to focus on higher-value work. In the public sector, for example, frontline workers like doctors, nurses, teachers, and police officers could save 23 million hours through AI automation. This would free them up to concentrate on critical services, improving efficiency in healthcare, education, and local government.

AI is also driving cost savings and business resilience. Research shows that:

• 71% of organisations are looking to reduce costs through AI-driven automation.
• 64% are using AI to increase efficiency and productivity.
• More than half of UK businesses see AI as a way to improve service delivery and enhance leadership decision-making.

These findings highlight the growing reliance on AI to boost performance while reducing workload pressure on employees.

AI Success case studies

Taylor Wimpey: AI-driven efficiency in construction

Taylor Wimpey, one of the UK’s largest housebuilders, has embraced AI to streamline operations and improve productivity. The company increased its Copilot AI licenses from 300 to 1,000, achieving a 92% adoption rate. Employees report saving an average of 28 minutes per day, with some saving up to two hours. This allows them to focus on higher-priority tasks, reducing stress and improving overall job satisfaction.

The company has also integrated AI into customer service, using Microsoft Dynamics AI tools to analyse customer emails and classify them as positive, neutral, or negative. This helps teams address issues faster, preventing small problems from escalating into major complaints.

Linklaters: AI-driven legal services

Global law firm Linklaters launched an AI-powered chatbot called Laila, which has processed over 2 million prompts across 7,400 users. This AI assistant helps lawyers by retrieving legal documents, analysing case details, and generating insights, saving valuable time.

To enhance employee experience, Linklaters has also developed AI-based tools for HR and IT support, allowing staff to quickly access policies and technical solutions. Their AI strategy is fully backed by senior leadership, ensuring that adoption continues to grow.

AI in quality control and safety

In the construction industry, AI agents are helping improve safety inspections and defect management. AI-powered tools can categorise thousands of job defects, identifying critical issues that need immediate attention. By using AI to prioritise tasks and reduce human error, construction firms can increase efficiency, reduce waste, and improve sustainability.

Redefining performance with Agentic AI

As AI adoption grows, businesses are beginning to see measurable benefits. Research shows that 74% of private businesses and 64% of public organisations are already leveraging AI to reduce costs and streamline operations. Additionally, 60% of private companies and 56% of public organisations believe AI can improve fraud detection, customer interactions, and workflow optimisation.

However, for organisations to truly harness the power of AI, they must move beyond experimentation and adopt AI at scale. 

AI is transforming the way organisations manage tasks and improve efficiency. Research highlights the key benefits AI can bring to UK businesses:

• 71% of organisations are automating repetitive workflows to cut costs and improve efficiency.
• 59% of leaders are using AI-powered fraud detection to improve security.
• 58% believe AI will improve customer satisfaction by personalising interactions.
• 50% of companies are implementing AI-driven customer retention strategies to predict and prevent customer churn.

Tom Heath, Global Director of Data Science and AI at Arup, explains how AI is revolutionising work processes: "Agentic AI allows our experts to focus on the creative, complex problem-solving that really moves projects forward. AI optimises workflows, helping us resolve process issues across different stages of a project."

Employees also see the benefits of AI in enhancing their career growth and work efficiency. Many believe that AI can:

• Catch errors in their work (63%).
• Help them prioritise tasks effectively (50%).
• Improve their chances of career advancement (40%).
• Assist in closing skill gaps (48%).

These findings demonstrate that AI is not only improving business operations but is also helping employees become more efficient, productive, and engaged in their roles.

A new AI performance benchmark: Leaders, chasers, and laggards

To understand how AI adoption varies across organisations, researchers have categorised businesses into three groups:

1. Leaders (Top 25% of Businesses)

• Fully integrate AI into their operations.
• Use AI for fraud detection, lead generation, and market expansion.
• Rely on autonomous AI agents to improve decision-making and optimise workflows.
• Confident in AI's ability to operate without human intervention.

2. Chasers (Middle 50% of Businesses)

• Use AI primarily for automating basic workflows, sales, and customer service.
• Struggle to scale AI adoption beyond pilot projects.
• Are less confident in AI's decision-making capabilities.

3. Laggards (Bottom 25% of Businesses)

• Rely on traditional, manual workflows, avoiding AI adoption.
• Lack a clear AI strategy for growth and innovation.
• Do not see measurable ROI from AI investments.
• Prefer to maintain full human control over processes.

Currently, only 25% of UK businesses are classified as AI Leaders, while 75% remain in the Chasers and Laggards categories. To remain competitive, organisations must invest in AI adoption, training, and strategy development to transition into the Leaders category.

AI adoption in the public sector

The public sector is also undergoing an AI transformation, with government agencies using AI to enhance national security, detect fraud, automate processes, and improve service delivery. However, like businesses, public organisations fall into three categories based on their AI adoption and readiness.

1. Leaders (Top 25% of public organisations)

Public sector AI Leaders are those that:

• Use AI to drive innovation and improve public services.
• Confidently integrate AI into multiple departments for greater efficiency.
• See AI as a strategic tool to enhance the UK’s global AI leadership.

2. Chasers (Middle 50% of public organisations)

These organisations recognise AI’s potential but are still working towards full integration. They:

• Focus on AI for cybersecurity and data protection.
• Understand that AI will require major operational changes over the next five years.
• Struggle to scale AI beyond limited test projects.

3. Laggards (Bottom 25% of public organisations)

AI Laggards in the public sector are slow to adopt AI due to lack of strategy, training, and measurable results. They:

• Do not have a formal AI strategy in place.
• Struggle to see a return on AI investments, limiting future AI projects.
• Lack of AI-related training for employees and leaders.

For the public sector to fully harness AI’s potential, government agencies must:

• Develop clear AI strategies aligned with public service goals.
• Invest in AI training to build a knowledgeable workforce.
• Strengthen AI governance and infrastructure to support long-term AI adoption.

Case study: Arup’s AI transformation

Arup, a global design and engineering firm, has integrated AI to optimise workflows and improve efficiency. The company has adopted AI in three key areas:

1. Machine learning for client work and internal operations – AI predicts project health and suggests improvements.
2. Generative AI for productivity – Tools like Microsoft 365 Copilot help employees manage workflows efficiently.
3. Custom AI models for engineering design – AI simulations improve design processes, saving time and enhancing decision-making.

Tom Heath explains how AI is changing the way teams work at Arup: "AI tools like Copilot allow our employees to quickly access internal knowledge and past project data. This transforms knowledge management, helping teams work smarter and more efficiently."

By integrating AI into data management, workflow automation, and decision-making, Arup has been able to reduce inefficiencies and improve performance.

A blueprint for Agentic AI success

The emergence of agentic AI, which can make decisions and take actions with little or no human intervention, presents a major opportunity for growth, efficiency, and innovation. However, UK organisations must act now to build the right foundations for AI adoption and unlock its full potential.

This blueprint outlines the essential steps businesses and public organisations need to take to prepare for and succeed in the agentic AI era.

The research in this report highlights a clear connection between AI strategy and organisational performance. High-performing organisations (Leaders) have:

• Clear AI roadmaps
• Purpose-driven use cases
• A culture that embraces change

In contrast, mid-level performers (Chasers) are experimenting with AI in silos but struggle to scale its adoption across the organisation. Low-performing organisations (Laggards) are held back by scepticism, slow decision-making, and limited leadership support.

To seize the agentic AI opportunity, organisations must act today. This blueprint provides a step-by-step guide to overcoming challenges and accelerating AI adoption.

Building a strong AI foundation

Before fully integrating AI agents into operations, organisations need to establish a solid foundation. The highest-performing companies follow these steps:

Step 1: Develop a clear AI strategy

• Engage leadership in AI education and strategic planning.
• Launch pilot programmes with clear performance benchmarks.
• Create a structured roadmap to guide AI adoption.

Step 2: Improve AI capabilities and automation

• Move from basic AI chatbots to intelligent AI agents that handle customer queries and automate workflows.
• Use AI-powered analytics for fraud detection, market expansion, and customer retention.
• Deploy AI-driven decision-making tools for executives and management teams.

Step 3: Upskill the workforce for AI adoption

• Implement AI literacy programmes to train employees on AI-powered tools.
• Encourage leaders to use AI insights for data-driven decision-making.
• Introduce AI-powered upskilling platforms that adjust training based on business needs.

Step 4: Strengthen AI governance and security

• Establish clear AI policies to ensure transparency and accountability.
• Deploy AI-driven cybersecurity solutions to protect data and prevent fraud.
• Introduce ethical guidelines to promote responsible AI use.

These foundational steps will help businesses and public sector organisations integrate AI efficiently and responsibly.

A Three-Phase approach to AI success

Once an organisation has built a strong AI foundation, the next step is to assess its AI maturity and identify opportunities for further progress.

Microsoft has developed a three-phase approach to help businesses and public organisations navigate the AI journey:

Phase 1: exploring & experimentation

• Deploy AI agents for specific tasks to understand their potential.
• Run pilot projects to test AI applications.
• Build employee awareness and engagement with AI.

Phase 2: integration & scaling

• Expand AI adoption across departments and operations.
• Train employees and leaders in AI-powered decision-making.
• Develop an AI council to oversee and guide AI implementation.

Phase 3: Continuous improvement & innovation

• Establish an ecosystem of AI agents that collaborate to improve efficiency.
• Continuously refine AI strategies to adapt to business needs and market trends.
• Monitor AI’s impact to maximise return on investment (ROI).

The role of AI in the public sector

AI is also playing a key role in transforming public services, helping government agencies reduce costs, improve efficiency, and enhance decision-making. However, public sector organisations must overcome key challenges to harness AI’s full potential.

• Invest in AI training for government employees to increase digital readiness.
• Strengthen AI governance and cybersecurity to protect sensitive data.
• Implement AI-powered automation to improve service delivery and resource allocation.

With the right strategies, the public sector can leverage AI to enhance national security, support policy-making, and improve citizen services.

The UK has the potential to become a global leader in AI, but this requires urgent action from businesses and government agencies. 

As UK Prime Minister Sir Keir Starmer stated: "New technology can provoke a reaction – a sort of fear, an inhibition, a caution, if you like. We’ve got to challenge that mindset because the far bigger risk is that if we don’t go for it, we’re left behind by those who do. AI is the way to secure growth, raise living standards, put money in people’s pockets, create exciting new companies, and transform our public services."

To support the government’s AI ambitions, organisations must move beyond ad-hoc experimentation to structured, enterprise-wide deployment.