Hype meets reality: Partners urged to prepare for agentic AI shake-out

A market reset is under way and partners will need to move from experimentation to measurable outcomes.

The agentic AI market is set for a correction and consolidation, according to Gartner, as hype and fear of missing out (FOMO) give way to fundamental economics.

At present, there’s an oversupply of agentic tools, but the market will align around large enterprise platforms and more integrated, business-focused solutions, the research firm predicts.

For partners, the implications are significant. They will need to reassess their strategies, deliver clear business value and prioritise execution over experimentation.

“Providers with understanding of not only agentic AI capability, but data and integration will be able to deploy the right suite of tools, products and outcomes,” Andrew Winlaw, GM Integration, Atturra said.

To remain viable, partners will need experience in deploying agentic capability at scale and to identify where the economic returns can be made.

“Having the right mix of agentic AI products focused on business outcomes allows for seamless integration to enhance the results,” Winlaw told CRN Australia.

The agentic market correction has started

The underlying product, agentic AI, is sound and Gartner expects investment to continue long-term. However, smaller, undifferentiated AI companies will struggle, with some acquired by larger companies — a process that’s already underway.

“Sticking to the obvious leaders in the space is going to be safer for all stakeholders in the project. Where a use-case necessitates a niche player, full risk assessments will be appropriate,” said David Okulicz, CEO at Kytec.

The dominant platforms will establish expansive, integrated ecosystems that improve agentic performance, leading to more reliable products and specific applications, the research firm predicts.

Partners will need to build their capabilities to clearly align use-cases with agentic tools and assist with integration and data services.

In some cases, AI fatigue is setting in as organisations struggle to move beyond proof of concept. It’s a warning to partners to tightly align on clear outcomes.

“The wrong use cases are being targeted, making it difficult to progress. Thinking small to win big is going to be key in the early days,” Okulicz said.

For product-led businesses, it’s going to be a very tough couple of years, Okulicz predicts.

“The role of partners will be to help define use-cases, assist with the selection of the correct tools and drive adoption. The old ‘partner and sell’ approach is not going to work — it cannot be one size fits all,” he said.

Partner survival strategies as agentic takes hold

As consolidation accelerates, partners will need to adjust how they position, package and deliver agentic services.

However, the rapid pace of change makes it challenging to train internal teams on new tools, validate the suitability of offerings and confidently design strategic solutions for their customers, according to Navneesh Garg, CEO at Adactin.

Partners will need to build capabilities that are outcome-driven rather than product-specific to stay flexible, minimise dependency on any single vendor and deliver value as the market consolidates.

“Partners who can integrate AI agents seamlessly into end-to-end service models will be well-positioned to drive efficiency, intelligence and measurable outcomes for their clients,” Garg explained.

Vendor consolidation will also reshape partner programs and incentives and should help to lower barriers for partners looking to develop AI services for their customers.

“We expect to see a shift toward more integrated, outcome-focused models that simplify access to AI tooling and APIs, enabling partners to deliver more cohesive and scalable AI solutions,” he ended.