The pace of change in artificial intelligence is accelerating rapidly, transforming how agribusinesses operate across Australia. As AI technology evolves, understanding the distinction between Generative AI and the emerging Agentic AI is crucial for businesses looking to gain competitive advantage in today’s digital landscape.
 

Understanding Generative AI

Generative AI refers to artificial intelligence models that can generate new content, ideas, or data—such as text, images, code, and more—based on learned patterns. This technology has already made significant inroads in Australian businesses across multiple sectors.
 
By 2025, generative AI is expected to dramatically reduce operational costs, enhance employee productivity, and provide more personalised customer experiences. Australia, with its strong innovation culture and tech-forward enterprises, is perfectly positioned to harness the full potential of this technology.
 

The Emergence of Agentic AI

While generative AI has been transformative, we’re now entering a new era with agentic AI capabilities. Unlike traditional AI systems that were rules-based with limited independent abilities, agentic AI uses sophisticated reasoning to solve complex, multi-step problems and implement plans to handle everyday tasks that usually fall onto human shoulders.
 
Agentic AI enables AI agents to analyse information, make decisions, and take action independently, adapting and learning as they go—all without human intervention. These agents are goal-oriented and can handle a wide range of tasks, adapt to changing situations, and work through multi-step processes on your behalf.

Generative AI vs. Agentic AI

1. Decision-Making Capability:
 
   – Generative AI: Creates content based on patterns it has learned
 
   – Agentic AI: Makes independent decisions and performs autonomously to achieve business goals
 
2. Autonomy Level:
 
   – Generative AI: Requires human guidance and oversight
 
   – Agentic AI: Can act independently and adapt to changing circumstances
 
3. Problem-Solving Approach:
 
   – Generative AI: Focused on content creation and analysis
 
   – Agentic AI: Uses sophisticated reasoning to solve complex, multi-step problems

Adoption in Australian Businesses

Australian businesses are quickly embracing these technologies. More than 60% of Australian firms have already deployed AI agents, ahead of the global average. Australia currently ranks 15th out of 62 countries worldwide for AI adoption.
 
The implementation of agentic AI couldn’t come soon enough as Australian businesses face an urgent productivity problem. Australian businesses are facing a productivity problem, with a recent McKinsey report warning that declining living standards need to be considered a national emergency.

 Implementation Considerations for Australian Businesses

 When implementing AI, Australian businesses should:
 
1. Start with clear objectives: Rather than using AI for its own sake, integrate it to solve real business challenges in a strategically sound manner.
 
2. Take an incremental approach: “Don’t try and solve all your problems at once. Pick a meaningful use case where you can really add value and use that to drive forward an initial implementation”.
 
3. Address skills gaps: Australian businesses face a significant AI skills gap, with artificial intelligence being one of the most in-demand skills in 2023. Consider partnering with AI specialists or investing in employee training.
 
4. Consider ethical implications: Establish ethical guidelines and governance frameworks to ensure responsible AI use, as privacy, security, and data quality remain major concerns for business when it comes to AI integration.
 

The Future Outlook for Australian Businesses

AI is projected to contribute $315 billion to Australia’s economy by 2028, making it essential for businesses to adapt. Companies expect substantial returns on their AI investments, with the average expected ROI at 171%.
 
Business leaders predict that agentic AI adoption will happen more quickly than generative AI adoption, with 94% believing the transition will be quicker. Australian executives are particularly optimistic, with 61% strongly agreeing that adoption will accelerate.
 
By embracing both generative and agentic AI technologies today, Australian businesses can enhance productivity, personalise customer experiences, and optimise operations, laying the groundwork for a smarter and more resilient business ecosystem.

While generative AI has already demonstrated significant productivity benefits through content generation and analysis, agentic AI represents the next frontier—enabling autonomous decision-making and action-taking that can transform operations across industries. 

For Australian businesses facing productivity challenges and skill shortages, implementing these technologies strategically could be the key to maintaining competitiveness in an increasingly digital global marketplace.

If your organisation is in need of advice about how best to implement AI in your organisation, the Business Strategy team at Farm Table are only too happy to assist.