The Rise of AI Agents 🦾

Hi friends,

We are witnessing an unprecedented rate of change. Soon, AI Agents capable of reasoning, adapting, and performing complex tasks will be commonplace. This represents the most significant shift in business operations since the dawn of the internet.

At Next Wave New York, we have recently invested in a company developing advanced AI agents. These agents can handle tasks that were previously beyond the capabilities of traditional RPA tools. For instance, if an AI agent encounters unexpected input, such as an image in a field where text was anticipated, it can analyze the situation, determine the best course of action, and provide a rationale for its decision.

This breakthrough enables the automation of tasks that were once considered too complex or unpredictable. These AI agents can = perform many functions, including content creation, customer service management, website updates, and marketing strategy development. They can adapt to changing conditions and learn from their experiences, continuously improving their performance.

The market potential for Agentic AI is substantial. Industry analysts project that the global market for this technology will grow from $4.8 billion in 2023 to $28.5 billion by 2028, representing a compound annual growth rate (CAGR) of 43%. Based on my observations, there is a clear trend in how these technologies are being implemented across various industries.

Let’s break it down:

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1. AI Copilots:

This is where we're at right now. Think of it like having a really smart assistant. You're still in the driver's seat, but the AI is there to help you navigate, offer suggestions, and handle some of the grunt work. It's a partnership — you provide the context and final decisions, while the AI boosts your productivity and capabilities.

2. Autonomous AI Agents:

This is the next step. Here, we're talking about AI that can take on tasks and run with them. You set the goal, and the AI figures out how to get there. Your role shifts from active participant to more of a supervisor or manager. You're still involved, but you're not needed for every little decision.

3. AI Agent Fleets:

This is where things get really interesting. By now, you have a whole team of specialized AIs working together. Each one has its own expertise, and they communicate and collaborate to tackle complex problems. It's like having a full staff of super-smart, tireless workers at your disposal.

Every time I sit down with a founder working on AI agents, I'm blown away by the sheer variety of problems they're tackling.

• Customer support - AI agents that can handle complex queries 24/7, freeing up human agents to focus on the really tricky stuff.

• Regulatory compliance - Sifting through mountains of legalese, flagging potential issues before they become real problems.

• Software development - Writing code, debugging, and crunching numbers faster than any human could.

• Personal assistants - Manage your calendar, draft your emails, even help you make decisions.

I’m curious: How do you envision AI agents changing your specific industry or role in the next five years? What tasks will be the first to be handled by AI agents in your field? What Agentic AI startups are you keeping an eye on?

Until next time,

Jesse

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👋 Hi, I’m Jesse, a seed-stage VC at Flybridge. If you’re building or investing in an AI-driven future, reply to this email with a short message. If you’re local to NYC, I’d love to catch up over coffee.