Artificial intelligence (AI) is still a settled technology for much of the payments industry. While a year ago, many were scrambling to find the best methods to apply the technology, today, it is being widely integrated across multiple applications. Organizations have been harnessing technology in new fraud-fighting initiatives over the past year.
The new wave of financial technology enables AI systems to make and manage transactions independently, offering businesses and consumers a more efficient, hands-off approach to payments. However, while the technology offers measurable operational benefits, the next step beyond genAI is now emerging as agentic AI.
Agentic AI – The Concept
The new model of Agentic AI incorporates more autonomous control, precise decision-making, and top-notch adaptability. Previous autonomous AI systems were based on pre-decided rules, authorizing them to work in that framework with little human interference.
A significant turning point was reached with the advent of generative AI, which enabled machines to produce content and evaluate data. However, agentic AI arose as the next frontier, with companies seeking more flexible solutions to manage intricate workflows independently.
While generative AI focuses on creating new content from preexisting data, agentic AI expands on this potential by equipping systems to take action depending on the insights produced. This shift results from the growing need for intelligent systems capable of independent action, decision-making, and data analysis.
Key Characteristics of Agentic AI
Agentic AI is goal-oriented, focusing on accomplishing more general objectives that improve its efficacy and value.
- Once assigned a specified task, agentic AI functions autonomously and with a high degree of autonomy.
- These systems are flexible, changing their tactics in reaction to data in real time.
- They can understand complex situations and make wise decisions based on context awareness.
Agentic AI: AI’s Next Big Opportunity?
Agentic AI can deliver much of artificial intelligence’s promise. When genAI often sees a back-and-forth between users and AI, refining requests and breaking down tasks into measurable units to get the best outcomes, agentic AI is all about autonomy. AI agents can act independently. They can make complex real-time decisions, learn dynamically in the process, and interact with technological systems. As with any technology, the full range of applications is still being realized. Significant areas with potential applications include the management of investment portfolios, proactive AI-based personal assistants, and smart virtual healthcare agents.
Understanding Agentic Payments
Agentic AI means artificial intelligence that acts independently, makes decisions, and acts without constant human supervision. In payments, this indicates that AI is capable of:
- Processing transactions in real-time
- Detecting and preventing fraud instantly
- Optimizing financial operations automatically
It acts as a personal finance assistant, making the best decisions based on real-time data.
Read more: The Ethics of AI: Balancing Innovation with Responsibility
Why Does It Matter
With agentic AI, autonomous decision-making and proactive execution are possible without constant supervision. From document fraud detection, enterprise risk assessment, portfolio management, and customer engagement, agentic AI can transform financial services industry. It bridges this gap, introducing autonomous execution, self-improvement, and contextual decision-making into financial workflows. This marks a shift toward self-sufficient AI systems that are evolving with the dynamic economic landscape.
The benefits of agentic payments include:
- Faster Transactions: AI is capable of completing payments instantly, thus reducing wait times.
- Better Fraud Detection: AI can detect suspicious activity in real-time, thereby preventing scams before they happen.
- Scalability: Businesses can process millions of transactions without raising operational costs.
Just like any new tech, agentic payments have their own challenges:
- Regulations: AI-driven payments must follow financial laws, which are constantly evolving.
- Ethical Concerns: If AI makes a financial mistake, who will be held accountable?
- Security Risks: Autonomous systems need to be protected from cyber threats.
While agentic payments are still in their early stages, they are set to revolutionize how we handle money. With top organizations like Stripe and Coinbase continuing to push the boundaries, we will live in a world where AI will handle our every transaction.
What Does Agentic AI Mean for Payments?
In payments, the potential of agentic AI is beginning to be felt. Financial institutions are exploring the use of technology to conduct research and make purchases on behalf of users. While still in the early stage, they indicate an immense area for payments: transactions with no human involvement. Myriad applications for agentic AI include initiating and completing transactions on behalf of a user or as part of a wider project, and tools to effectively and efficiently support the making and taking of these payments are vital.
These transactions can further help increase the speed of money, which has already witnessed significant gains through digitization and the shift to real-time payments. However, they need their ecosystem of solutions, plug-ins, and regulatory oversight.
Agentic AI offers a new avenue of potential payment applications but will require legislation, security, and support to evolve.
Key Considerations for Deploying Agentic AI in Financial Services
Agentic AI carries immense potential for financial services. But its impact stretches beyond automation, posing significant challenges that require thoughtful solutions.
- Balancing Privacy and Cybersecurity
Agentic AI relies heavily on data. However, reliance on massive datasets presents privacy concerns. Financial institutions need to strike a balance by leveraging AI’s intelligence without compromising user confidentiality. Its autonomy also further gives rise to new cybersecurity risks, requiring proactive defenses against AI-driven threats.
Read more: The Rise of Agentic AI: Unlocking the Future of Technological Advancements
- Market Volatility and Systemic Risks
Automation speeds up trading and financial decision-making but makes it more fragile. Agentic AI can intensify market fluctuations, triggering herd behavior where AI systems react simultaneously, amplifying financial swings. Without safeguards, a single miscalculation could lead to ripples across economies.
- Governance and Regulation
With AI taking on greater financial responsibilities, regulatory frameworks need to evolve. Autonomous decision-making demands clear accountability, especially in credit underwriting and investment strategies. Transparency is critical to maintain trust in AI-powered financial systems.
Final Thought
Agentic AI symbolizes the next phase of AI-driven transformation in financial services. By enabling real-time decision-making and learning from evolving data, it is set to reshape the way financial institutions operate. While its benefits are immense, the successful adoption of agentic AI will require careful planning and a commitment to ethical AI development. Agentic AI needs to be used responsibly. This requires balancing innovation with oversight, automation with human expertise, and intelligence with accountability.
Financial institutions that embrace agentic AI will improve efficiency and profitability while gaining a competitive edge in today’s rapidly evolving digital economy.
At SG Analytics, we help payment banks lead in a digital-first financial ecosystem. Our full-stack capabilities across data, AI, technology, and research enable seamless, secure, and intelligent payment experiences. From streamlining transaction flows to powering hyper-personalized journeys, we work with leading payment banking firms to drive innovation, operational efficiency, and customer engagement at scale and with precision.
About SG Analytics
SG Analytics (SGA) is an industry-leading global data solutions firm providing data-centric research and contextual analytics services to its clients, including Fortune 500 companies, across BFSI, Technology, Media & Entertainment, and Healthcare sectors. Established in 2007, SG Analytics is a Great Place to Work® (GPTW) certified company with a team of over 1200 employees and a presence across the U.S.A., the UK, Switzerland, Poland, and India.
Apart from being recognized by reputed firms such as Gartner, Everest Group, and ISG, SGA has been featured in the elite Deloitte Technology Fast 50 India 2023 and APAC 2024 High Growth Companies by the Financial Times & Statista.
