1、Barclays Capital Inc.and/or one of its affiliates does and seeks to do business with companiescovered in its research reports.As a result,investors should be aware that the firm may have aconflict of interest that could affect the objectivity of this report.Investors should consider thisreport as on

2、ly a single factor in making their investment decision.Please see analyst certifications and important disclosures beginning on page 19.U.S.SoftwarerAImos AI Series-Vol.3:Agents Takethe Drivers Seat Alongside CopilotsWe view AI Agents as the next step in the enterprise AI evolutionand see a$110bn op

3、portunity for app vendors.We break downthe tech advancements in AI reasoning that make agents sopowerful,as we size their prospects,explore product roadmapsand assessbenefits from an emerging pricing format.An AI Agent for Change for Vendors:As fears of an AI Winter mounted earlier this year,webegan

4、 to hear more about a new technology called agentic AI,which brought with it a renewedsense of excitement for vendors.AI agents leverage enhancements to reasoning,and this in turnpowers autonomy and the ability to take action with tools.The outcome focus of this productcan lead to a stronger ROI pit

5、ch as vendors tackle the market that we calculate to be$110bn by2028.We see the AI agent evolution as most beneficial to application vendors,and still a plus forhyperscalers.Advancements in Reasoning Enable Action:Whereas most technology has historically beenmeant to assist,the goal of AI agents is

6、to do,as humans can do.In order to perform likehumans,technology had to evolve to mimic human thought patterns,taskcompartmentalization,memory,and tool usage.We dive deep into the journey of this evolutionand the new powerful capabilities afforded by enhancements made at the reasoning layer.$110bn O