You may have seen people saying that you should use AI agents in all verticals of your business. But is this really true? Are AI agents in business really beneficial or not?
There is no doubt that AI agents have the capability to help your business in many ways, be it automating your repetitive tasks, helping you with decisions, or offering a better customer experience.
These AI agents have found a place in modern business workflows. However, AI agents are not a one-size-fits-all solution. They can help you in some areas but also struggle in others where human expertise is irreplaceable.
In this article, we will read about where AI agents work best in business operations and where they fall short. This article assumes that you have a basic understanding of what is an AI agent.
Where AI Agents for Business Work Best?
AI agents provide the most value when they handle repetitive and scalable tasks. Here are key areas where AI agents in business can benefit you the most:
AI Agents in Customer Support & Chatbots
One of the most common AI agent business applications is in customer support. AI agents can manage thousands of customer queries in real-time. This gives your business an advantage of providing instant responses and improving customer experience.
If you have used modern AI chatbots, you must have noticed they don’t just react but also predict customer needs and engage users intelligently. And that is the real power of AI agents in customer services, not just automation but predictive engagement.
Know more: Are LLMs and Generative AI the Same?
AI agents in customer services can also detect the emotion and tone of the user and accordingly adjust their tone (not at a very good level though). If you build your chatbot with IBM Watson AI, you will see what we just said in the previous line, as it uses NLP for tone analysis.
Zendesk AI, Drift Conversational AI, and ChatGPT-Based AI Assistants are some names of AI in business that are good at their work.
AI Agents in Automation & Workflows
Have you ever heard the name Intelligent Process Automation? No? Let us tell you. IPA combines Robotic Process Automation, AI, and other technologies to automate tasks that need human like thinking and learning.
IPA (which is basically AI agents for automation) is not only helping business with automating tasks. But its capability of learning, adapting, and making informed decisions is what makes it special.
AI Agents in Manufacturing
AI agents in manufacturing can work on your production line and increase its efficiency. If you build AI agents for your manufacturing business, they will not only automate tasks, but they will also predict failures, optimize your process on their own, and can help you own a smart & autonomous factory (not completely).
AI Agents in businesses (manufacturing) are already being used by some of the top companies. Check the image below.
AI Agents in BFSI
AI agents in financial services can change the way your business works. They can improve fraud detection, risk management, and offer personalized customer experiences. If you build custom AI chatbots for your business, it can handle banking inquiries and transactions.
AI in fraud detection at PayPal and robo-advisors like Wealthfront are perfect examples of AI agents in business (BFSI).
AI Agents in Retail
You can build custom AI agents in retail to provide better customer experiences, optimize your inventory, and boost sales. There are many areas where you can implement AI agents in business of retail.
You can automate billing and checkout processes with the help of AI agents. AI agents in retail can also predict your inventory needs and reduce stock shortages. Contact our AI agent development company to know how you can own a custom AI agent for business.
Have a look at the market size of AI agents as reported by MarketsandMarkets.
Where AI Agent for Business Don’t Work Well (Limitations & Challenges)
AI agents offer many advantages that you have read above. But AI agents have their own limitations. Give this section a read to know where AI agents in business cannot help you, at least not for now.
Complex Decision-Making Requiring Human Judgment
AI struggles in situations where ethical, legal, or strategic human insight is crucial.
Let’s take an example of legal case evaluations or high-stakes business negotiations. In such scenario AI can analyze data and suggest options, but it lacks the ability to understand emotions, context, and ethical dilemmas.
One major concern is AI biasness. For suppose you use AI agents in HR for recruitment and hiring. Your AI agent can analyze resumes based on past data but if that data is biased, the AI may favor certain candidates while unintentionally discriminating against others.
Emotion-Driven Customer Interactions
AI chatbots are great for answering common questions and providing quick support. But they struggle with emotion-driven interactions that require empathy and human understanding.
AI agents may fail to pick up on emotional cues, sarcasm, or distress. This can lead to impersonal or ineffective responses. As we said earlier, AI is improving, but it still lacks the human touch needed for sensitive conversations.
For example, some mental health apps use AI to provide emotional support, but they often fail to detect deep distress or suicidal thoughts accurately. This is why human intervention is still very important in emotionally sensitive areas.
Also Read: Why and How to Build AI Agents for Small Business?
Dynamic & Unstructured Environments
AI agents are very good at processing vast amounts of data. But what if you have unpredictable situations that require human intuition such as crisis management or emergency response.
AI can provide recommendations based on past data, but it cannot react flexibly to rapidly changing conditions the way humans can. Similarly, in live business negotiations, AI may analyze trends and predict outcomes, but it lacks the ability to read emotions, adjust strategies on the spot, or navigate complex human dynamics.
Creativity is another area where AI falls short. Yes, AI generated content can assist with ideation but lacks originality, emotional depth, and a true understanding of cultural nuances.
Conclusion
AI agents for businesses can make them smarter, more automated, and highly efficient. But they don’t fit every need solution. AI agents in business can help to avoid repetitive tasks but they still struggle with human judgment and emotional intelligence.
If you want to use AI the right way, combines this wonderful technology with human intelligence. Don’t see this as a replacement for your workforce (at least not yet) but a great companion that can help you do tasks fast without a break.
Is it the right time to implement AI in your business? Let’s discuss!
FAQs
Q1. What is the difference between AI agents and chatbots?
AI agents can perform complex decision making and automation. Chatbots primarily handle customer queries using predefined responses or NLP.
Q2. Can AI agents replace human employees?
AI agents automate repetitive tasks but are best used alongside human employees to increase productivity rather than replace jobs entirely.
Q3. How much does it cost to implement AI agents in business?
The cost of implementing AI agents for business is not fixed. It varies based on complexity, industry, and scale. Contact our AI agent development company and we will tell you about the approx. cost for an AI agent in your business.
