Generative artificial intelligence is the most accessible and prominent form of that burgeoning technology. It’s also still in its formative stages.
But as is the case often in financial markets, experts and investors are looking to new frontiers in the artificial intelligence realm. In what could prove to be pertinent to investors considering ETFs like the Invesco QQQ Trust (QQQ ) and the Invesco NASDAQ 100 ETF (QQQM ), agentic AI is considered to be one of the emerging AI avenues.
Put simply, agentic AI ups the AI ante by emphasizing independent decision-making and problem solving. Indicating there are implications for assets such as QQQ and QQQM, there are intersections between agentic and generative AI. There are also differences. And those could also underscore long-term opportunity with the Invesco ETFs.
“First, instead of merely generating content, they are designed to make decisions. Second, unlike models that require human prompts, agentic AI autonomously works toward specific [goals. These include] increasing sales or improving customer satisfaction. Finally, these systems execute intricate workflows, accessing databases and initiating processes independently,” according to Adams Street.
Another Avenue for AI Adoption
As has been widely observed in coverage of AI-related stocks, including a bevy of QQQ/QQQM holdings, investors since moved past AI hype. Now, they want tangible results and those come in the form of broader AI adoption.
Generative AI is working its way to answering that call. But Adams Street points out that agentic AI already has compelling use cases that could augur well in terms of long-term adoption. Those include customer service and procurement.
“For example, an AI agent could anticipate a delayed delivery, notify the customer proactively, and offer a discount to improve satisfaction,” added the investment firm. “Startups such as Sierra, Ema, and Decagon are developing agentic AI chatbots that transform customer interactions by providing empathetic, conversational, and personalized support.”
There are also workforce implications regarding agentic AI. But that doesn’t mean the technology will replace humans. The CEO of one of the biggest QQQ/QQQM components envisions a future where people work side-by-side with agentic AI tools.
Jensen Huang of Nvidia (NVDA) “envisioned a future where every employee acts as a manager overseeing AI agents. Huang predicts that Nvidia’s 30,000 workforce may be accompanied by millions of AI agents,” concluded Adams Street. “He is not alone in envisioning an agentic enterprise. A recent Capgemini survey of 1,100 business executives found that 50% will implement AI agents this year, up from 10% currently employing them. Within three years, this number is expected to rise to 82%.”
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