Agentic AI in the workplace: key implications for employers

Agentic AI has been one of the key tech buzzwords of 2025 and is likely to be one of the key drivers of workplace change over the next few years.  Although there's a lot of hype, AI agents have not yet seen mass adoption in businesses, as in many cases their capabilities are not quite developed enough.  However, as the technology underpinning agentic AI develops, it's likely to be adopted more widely and will have significant impact on workplaces.  Employers need to start thinking about these issues now, as they explore agentic AI's possibilities.  

What is agentic AI and how is it different?

It's important to understand the difference between agentic AI and less advanced forms of AI, as well as how it differs from automation.  The key difference is that, while traditional and generative AI is able to use machine-learning and large-language models to generate output based on prompts or instructions, agentic AI is able to operate much more autonomously.  Rather than needing prompts to tell it which “route” to follow, agentic AI can work out how to achieve the desired outcome.   It's more of an independent problem-solver than a generator of content.   This means that as its capabilities develop, agentic AI will be able to take over more sophisticated and strategic tasks in businesses.   Unlike automation, which is often used to carry out jobs that humans don't enjoy or perform efficiently (like creating large volumes of very similar documents), agentic AI will ultimately be able to carry out or enhance a lot of the tasks currently carried out by senior employees.  The implications for staffing structures and job roles will, in time, be very significant. 

Agentic AI in the workplace

Many employers are experimenting with agentic AI tools - the potential is really exciting.   However, businesses will need to put adequate safeguards in place to ensure that agentic AI doesn't result in breaches of confidentiality, unintended outcomes or fraud.  Businesses will also need to consider very carefully the the employment law and data protection implications, particularly where AI agents are taking decisions or carrying out tasks which will affect staff. 

Some key points for employers to consider: 

• Automated processing:  If AI agents are taking decisions which have significant effects on employees (including profiling), this will require compliance with the UK GDPR requirements on automated decision-making.  In particular, an employer would need to carry out a data privacy impact assessment, analyse whether the conditions for lawful processing were met (which in an employment context will usually mean that the processing must be necessary to enter into or perform the employment contract) and ensure that affected employees are told how their data is being used and given an opportunity to challenge decision-making.   This in turn means that agentic tools need to be capable of “showing their working”, something which is still a work in progress. 
• Bias:  As with any AI tools, there is the risk of biased decision-making or discriminatory impacts - as well as the challenge for employers of disproving discrimination where the decision-making process has been undertaken without human oversight.
• Changing job descriptions:  Agentic AI may change very significantly how certain jobs are performed.  Employers will need to consider whether existing contracts and job descriptions are broad enough to encompass these changes (particularly as the forthcoming Employment Rights Bill will make it harder to introduce variation clauses into employment contracts)
• Trust and confidence   Widespread use of agentic AI within a business could, over time, fundamentally shift the relationship between an employer and its staff, as more strategic decisions are made using agents.   Employers will need to consider carefully how to maintain staff engagement and the relationship of trust and confidence, or risk claims for constructive unfair dismissal arising from hasty or ill-thought-through implementation of agentic AI. 

Agentic AI is a huge opportunity for employers to enhance their business performance - but they may neglect the human considerations at their peril.