- Only 25% of AI systems operate autonomously, according to ISG's new report.
- Banking, financial services, and insurance sectors lead in AI use cases.
- Significant organizational and data challenges hinder full AI adoption.
Despite ambitious expectations for autonomous AI capabilities, the latest research from Information Services Group (ISG) (III, Financial) reveals that nearly half of agentic AI systems in production are limited to only performing predefined actions. This new insight was shared in the ISG State of Agentic AI Market report, presented during the 2025 ISG AI Impact Summit in Boston.
According to the report, agentic AI, which promises systems that can make complex decisions independently, is still in its nascent stage. Only 25% of current AI solutions allow for autonomous operation, while 45% act as advisors requiring human validation. These limitations highlight significant hurdles for enterprises wishing to tap into AI's full potential, with data governance and organizational readiness identified as critical challenges.
The report also highlights that more than half of organizations are grappling with outdated data infrastructure, with 38% partnering with service providers to enhance data management. It emphasizes that AI's unique data consumption needs necessitate a shift from traditional data architecture, urging enterprises to adapt foundational changes akin to the early days of offshoring.
Targeting key industries like banking, financial services, insurance, retail, and manufacturing, which cumulatively hold 69% of AI use cases, service providers are delivering rapid results through pre-built AI solutions. However, focus is already shifting towards more sophisticated AI systems aimed at transforming sectors extensively.
As the AI landscape evolves, ISG anticipates a shift in strategic focus towards revenue growth within the next two to three years, as companies initially integrate agentic AI in IT and back-office functions before advancing to complex tasks in service delivery and customer interactions.
The ISG State of Agentic AI Market report is a culmination of insights from end-user surveys, enterprise interviews, and discussions with service providers, offering a roadmap for achieving long-term success with agentic AI technologies.
