In this Tech Barometer podcast, disruptive technology investor and analyst Jeremiah Owyang explains the rise of AI agents and a future shaped by a multiplying AI-first mindset.

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Podcast transcript:

Jeremiah Owyang: The biggest industry right now in AI is the AI agent space. It’s destined to grow 10 times every five years. Right now it’s estimated at 5 billion, which will go to over 65 billion, and then it’s estimated to be 500 billion just within the next several years. This is the hot market growing within the AI space right now. People use the internet. You physically go out and find different websites to get information. You fill out tasks and you order flights, you order e-commerce, you get things done even inside of your enterprise. You have to fill out expense reports and timecards. All of these things are wasteful and not great experiences in the future. Your AI agents are going to go out and do those tasks for you. The information will be reassembled in the way that you want when you want in a multimodal way, whether it’s text, video, ar, vr, whatever time of day that you want, and in the amount of information that you want. It’s no longer up to the web designer. It’s no longer up to the website or the app designer. It’s up to you.

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Jason Lopez: What you heard are excerpts from a keynote speech by Jeremiah All Yang, general partner at Blitzscaling Ventures. He also leads an event called the LAMA Lounge and AI community of hundreds of AI company founders. We recently interviewed Jeremiah to tell us more about agents.

Jeremiah Owyang: AI agents are dependent upon large language models.

Jason Lopez: In just a moment, Jeremiah explains the importance of LLMs to agents. But let’s start here. An agent is software code that allows a device to understand its environment process information then acts autonomously to take actions to achieve specific goals. AI agents can do more than common AI assistance that respond to specific user prompts. An AI agent can self task, it can learn over time and even recruit other agents to help. They operate across multiple apps, often working silently in the background even while we sleep. A smart home thermostat or robot vacuum or autonomous vehicle, or just a few examples of AI agents in action. In many ways, AI agents are less like tools and more like digital organisms adapting and evolving in a world built from code.

Jeremiah Owyang: As they become more advanced, they operate in sequence, in combination with each other. In concert, which is called the agent crews or fleets or groups or swarms. In many cases, they are like low level human employees.

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Jason Lopez: So how does an agent know what to do?

Jeremiah Owyang: They get it from large language models. They’re dependent, so it’s not if they’re a replacement of large language models, they’re actually executing the tasks. So think of large language models as your brain with all that knowledge and the things to do, but the actual clicking and typing and doing the actual physical tasks like your limbs, your appendages, your body are the AI agents, and you need both in combination to be an effective quote creature.

Jason Lopez: From the point of view of an enterprise, you might be wondering if IT infrastructure needs to change as companies shift from just using LLMs to deploying AI agents. The answer would be yes. An IT team needs to prepare for how agents will interact with the company’s systems. This means choosing the right tools or partners and deciding on what permissions and access an agent should have for the tasks it could do.

Jeremiah Owyang: It could fill out your expense report after looking at your credit card. It could create meetings or meeting summaries. It could build your monthly reporting deck and grab data from disparate places and aggregate it into one location. It could be like a virtual colleague. It could be just the two of us on a call. We could have three, four, or five assistants that are not just recording, but actually talking, collaborating, taking notes, taking actions, and generating diagrams in real time.

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Jason Lopez: Many companies are already using AI assistance for customer service, handling basic questions using company data, and Jeremiah says, companies are using Gen AI in all sorts of interesting ways. He said 10% of Pfizer’s marketing content is being generated by ai. This can help workers be faster and more productive.

Jeremiah Owyang: Now, imagine if that worker who just wants to focus on making good decisions or the relationships with customers or relationships with internal stakeholders could allow the AI agent to do all that busy work for them. Now at your company and many companies who has an executive assistant, typically it’s only provided to those at the top of the hierarchical pyramid. Now, imagine a world where every worker has one assistant wait, two assistants, wait, wait, wait, 10 assistants, 10 assistants that help with data or meetings or scheduling. Just all of those things. Imagine the level of productivity that can increase for those knowledge workers, and I think we’re on the cusp of that because if you interface with just an AI agent, it means you just don’t need that many enterprise apps anymore.

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Jason Lopez: This isn’t to say that an AI agent is just a simple addition to a team. Some companies are exploring what it would be like to rely on AI led teams.

Jeremiah Owyang: So it’s really critical that you as a worker lean into AI and lead that within your company and for your career, or you might have to be updating your LinkedIn profile. So I think it’s critical that we lean into this technology.

Jason Lopez: We’ve reported before as we head into the age of ai, there’s a skills gap. Companies like Nutanix have AI teams that can build AI into products or create apps that boost business productivity, but using AI as a skill that will be needed across different business units to enhance employee competency. Many companies onboard AI capabilities like Microsoft Copilot or Glean or services like writer.com. Many workers take upon themselves to acquire knowledge and certifications for AI expertise. They turn to YouTube or platforms like Coursera or continuing ed from colleges and universities.

Jeremiah Owyang: Every worker is responsible for their continued growth. Now, for executives, there’s a new role. There’s a chief AI officer leading the charge within the organization to use these tools. Most of the innovation is happening with the young startups, many of them who spun out a big tech or spun out of big companies and they say, I’m going to move much faster.

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Jason Lopez: Jeremiah says, small teams are capable of building a global enterprise AI software suite in one year with rapid adoption.

Jeremiah Owyang: Crew AI only has 16 employees, and they’re already one of the dominant enterprise agent leaders because they’re using AI for everything.

Jason Lopez: Crew AI is a San Francisco based firm, which makes development tools to build AI agents that do tasks in apps like CRM or ERP systems.

Jeremiah Owyang: They are what is called an AI-first mentality. So let’s talk about an AI first mentality. This is a common mental framework within Silicon Valley, amongst the AI leaders. If you have a problem in your life, you first see if there’s an AI that exists off the shelf, whether it’s an app you download or an enterprise app that’s an existing enterprise software. If it doesn’t exist, then you try to build it and step three, if it doesn’t, you can’t build it. Then you hire somebody to build it. So you follow that lineage to think about, how do I move fast? And it’s always about leveraging AI first. So that’s the AI-first mindset.

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Jason Lopez: Building on the rise of enterprise AI platforms and the growing availability of ready-made templates. The next logical step is even more transformative. As tools become more accessible in development, more streamlined, the creation of AI agents is starting to shift as well, possibly even to the agents themselves.

Jeremiah Owyang: We are probably going to see AI agents create AI agents. There’s already no-code AI, so developers can be even more efficient and can create even faster. I anticipate that developers and software engineers, they’re still needed. We need them more so they can just produce more. I don’t see them going out of a job. That’s our take in this

Jason Lopez: Space. Still, the development of AI agents in the enterprise lags behind the customer side. A lot of that has to do