"Whereas generative AI mainly responds to commands, Agentic AI works proactively, context aware and often without human intervention. With that, AI is no longer a digital buddy waiting for input, but a colleague who knows what needs to be done and executes it himself."
What does this mean for the way we work?
A giant leap forward
Where the previous Work Trend Index Annual Report (2024) was still focused on the adoption of AI in the workplace, we have taken a giant leap in the past year. It is no longer a question of whether we will use AI, but what tasks we will entrust to the latest AI agents and what that means for our daily work.
New AI, new organization
Microsoft spoke with AI-native startups, scientists and thought leaders to explore together what the introduction of AI agents means for our world of work. The outcome? In response to the advent of AI, companies are transforming at lightning speed. Meanwhile, a new type of organization is even emerging: the Frontier Firm.
Pioneers who, by making smart use of intelligence on demand and hybrid teams of humans and AI agents, can effortlessly scale up, be incredibly flexible and create value at lightning speed.
Three characteristics that set Frontier Firms apart:
- Intelligence on demand: AI is available anywhere, anytime, integrated into all processes, like a digital expert you can consult instantly.
- Hybrid teams: People and AI work side by side, without rigid hierarchies. AI agents are not tools, but active team members.
- Complete workflow automation: AI agents take complete tasks off your hands, from customer service to product development.
What do Frontier Firms do differently?
Frontier Firms use AI organization-wide, score high on AI maturity, deploy agents in a targeted way, with the ambition to integrate them into their processes on a large scale. Finally, these firms are convinced that AI plays a key role in maximizing ROI.
Although only 10% of respondents work at an organization that meets these criteria, they are already showing what is possible: 77% say they are achieving exceptional success (compared to 39% globally), 55% are working more productively and they are more optimistic about the future. Moreover, they worry much less about job loss due to AI (21% vs. 43% globally).
By combining human creativity with the constant availability and precision of autonomous systems, Frontier Firms are creating a powerful, strategic competitive advantage. Consider linking AI agents to customer data. Instead of just generating analytics, AI performs immediate actions, such as personalizing offers or scheduling follow-ups. Or, AI agents that manage inventory levels, plan marketing campaigns or coordinate product launches without requiring every step to be performed by a human. That saves time! And that's nice because.
Real productivity gains
One of the biggest challenges companies face today is simply getting the work done. More than half of executives see the need to become more productive, yet employees are often trapped in packed schedules, overflowing inboxes, and constant distraction. On top of that, our workdays are no longer confined to 9 to 5, but earlier ("just sending that email before breakfast") and stretch well into the evening. This is were AI, and especially Agents, can make a world of difference by taking over routine tasks from start to finish. Freeing people up to focus on work that truly adds value.
From plan to reality
Agentic AI is not something of tomorrow. Over 80% of executives, for example, expect AI agents to be part of their AI strategy within 12 to 18 months. The big question is: How do you go about it smartly? Microsoft distinguishes three clear stages that will help you take this step:
- AI as an assistant: Everyone uses AI to work faster and smarter. Think of a marketer who writes texts with AI, a lawyer who quickly searches relevant documents, or an analyst who has reports compiled within seconds.AI supports as a smart helper, but humans are theprincipalsat this stage.
- AI as a digital colleague: AI agents perform specific tasks independently, but still at the behest of humans. For example, a customer service agent who uses AI to handle routine questions automatically so they can focus on more complex cases. Or a sales manager using AI to automatically send follow-up emails while determining which leads to prioritize.
- AI as an autonomous colleague: AI works independently on processes, making decisions within established frameworks and seeking human approval when needed. For example, an AI agent monitoring inventory levels, placing orders and scheduling deliveries. Or a software development team having an AI agent write and test code, then they review the end result.
Key Considerations
In any major transition, focus is critical. Determine first where AI will make an immediate impact and where human insight, empathy and creativity will remain necessary for some time.
"For example, the report includes an example of a company that uses AI primarily to automate tasks that are indispensable but add little unique value on their own.In addition, we see at Frontier Firms that AI agents are used relatively more often in marketing, internal communications and data science."
The next step is to find the right balance between the number of agents and the people supervising them - the human-agent ratio. Determining who is responsible for managing agents is also a concern. This agent-boss will build agents, give them tasks, and make sure their impact is maximum. Finally, the composition of your teams will also change.
"About a third of respondents are already considering AI workforce managers and AI agent specialists to redesign processes with AI and automate complex tasks."
A turning point
If there is one thing that is certain, it is that Agentic AI is a turning point in digital transformation. Where generative AI helped increase creativity and productivity, this new form of (autonomous) AI is capable of much more. Frontier Firms that are already investing heavily in it will benefit as pioneers from faster turnaround times, higher quality and greater agility.
Maybe your most productive colleague will soon be an AI agent who never gets coffee, but is always ready to do the work!
Is your organization ready for Agentic AI?
This blog contains some key insights from the Microsoft Work Trend Index Annual Report 2025. You can find the complete report here.
