Gartner Says agentic AI supply exceeds demand; market correction looms

The current supply of agentic AI models, platforms, and products far exceeds demand, which will result in consolidation and market correction, according to Gartner, Inc., a business and technology insights company.

Gartner analysts anticipate that agentic AI markets will consolidate in the short term as hype and fear of missing out (FOMO) give way to fundamental economics. In this AI vendor race, the losers of consolidation will be undifferentiated AI companies and their investors. The winners will be capital-rich incumbents with the resources to acquire promising technologies and talent.

While early signs of market correction and consolidation are visible, product leaders should recognize this as a regular part of the product life cycle, not a sign of inevitable economic crisis, said Will Sommer, senior director analyst at Gartner. Over the longer term, consolidation will enable industry leaders to develop agentic products that meet the technical and business ...