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Enterprise AI Agents: The Next Phase of Digital Business Transformation

Artificial intelligence (AI) agents represent the next frontier of AI’s rapid evolution, amplifying its benefits. Tech leaders and commentators have described 2025 as the “year of AI agents,” and it’s clear the next frontier is well underway. Read More >>

Artificial intelligence (AI) agents represent the next frontier of AI’s rapid evolution, amplifying its benefits. Tech leaders and commentators have described 2025 as the “year of AI agents,” and it’s clear the next frontier is well underway.

While AI agents have garnered public attention for their B2C applications, such as the ability to plan vacations to popular beach destinations, their impact on business productivity and the economy are less well-known. The White House AI Action Plan — released last week — focused on “winning the race” in AI, and enabling AI agent adoption is a critical part of how America can win.

AI’s global economic impact is surging, with investments expected to reach over $22 trillion by 2030 and AI adoption fueling up to a 15 percent increase in GDP by 2035. With 78 percent of companies indicating they plan to implement AI agents, AI’s benefits and economic impact will likely only continue to increase. As enterprise software companies increasingly use AI agents to enhance their products and services, they’re not only optimizing various business functions; they’re catalyzing the next phase of digital business transformation.

A look behind an AI agent’s capabilities and operation illustrates why these advances are cutting-edge. AI agents are software systems powered by large language models (LLMs) – the technology behind popular generative AI tools that can respond to questions or generate other content. But AI agents don’t simply predict an outcome or generate content; they reason and take action, providing limitless opportunities. AI agents can:

  • Sense their environment through sensors or APIs to access relevant information from external systems, databases, and web services;
  • Reason, often using machine learning to understand data and context;
  • Plan how to accomplish an objective;
  • Coordinate with users or other systems;
  • Act; and
  • Adapt.

The Business Software Alliance’s (BSA) new “Enterprise AI Agent” paper highlights key industry use cases for AI agents, including customer relationship management and core business processes, like human resources, finance, IT, content management, manufacturing, cybersecurity, and software development. Notable examples include:

  • Customer Relationship Management: Elevate priority tickets with certain criteria for resolution, addressing the most important issues more quickly;
  • Business Processes and Workflow: Provide employees with intelligent, personalized growth opportunities to increase internal mobility; expedite contract management by analyzing agreements, flagging issues, and surfacing areas that require human expertise; provide customized workflows for specific project tracking and strategic planning needs; or schedule and summarize meetings on a video communications platform;
  • Manufacturing: Increase the efficiency of product design, streamline manufacturing operations, and automate error resolution; and
  • Cybersecurity: Reduce incident response time by automating security threat detection, investigation, and response.

Whether it is an IT agent identifying a network problem, proposing a solution, and fixing it after human approval, or an industrial AI agent assisting with manufacturing design, enterprise AI agents are transforming the competitive landscape for global businesses.

AI Agents: Key Policy Considerations in Focus

As companies increasingly develop and use AI agents, an overarching principle in responsible AI governance remains important: roles and responsibilities matter. Different AI actors perform different tasks, which affects the information they have access to and their ability to resolve an issue. As a result, obligations for responsible AI development and use should fit the role, which is something BSA has emphasized for several years.

The AI agent ecosystem is complex, varied, and evolving. One scenario includes LLMs developers, companies integrating LLMs into their own AI agentic systems (“integrators”), and deployers, who use the agents in their business, such as a bank using an agent to enhance its fraud detection or a retailer building an agent on an integrator’s platform to assist with customer interactions. As BSA highlighted in its blog, “Unpacking the AI Stack,” role-based responsibilities are critical for ensuring appropriate steps for AI actors are feasible to implement in practice. For example, integrators, who incorporate AI tools from developers into software applications for other businesses, should have tailored responsibilities that are proportionate to the changes they make or the risks they introduce.

BSA members also continue to prioritize key safeguards in agentic AI, such as privacy and security, ensuring AI agents act in compliance with data policies and appropriate permissions and access controls. Notably, cybersecurity providers not only maintain existing network security operations, they also secure AI agents to, among other things, protect against malicious inputs and sensitive data leaks.

In short, leading enterprise software companies are propelling AI-enabled digital business transformation with AI agents, all while prioritizing privacy and cybersecurity. As stakeholders assess responsibilities within the AI agent ecosystem, an enduring principle can help guide AI development and use: responsibilities for AI actors, including integrators, should fit their role. This role-based approach ensures that appropriate safeguards can be put in place by the right people at the right time, building trust throughout the ecosystem and spurring continued AI adoption. As we continue to accelerate in the AI race, enterprise AI agents are key to crossing the finish line.

Author:

Shaundra Watson serves as Senior Director, Policy, in Washington, DC, and is responsible for providing counsel and developing global policy on key issues for the software industry, with an emphasis on artificial intelligence.  In a previous BSA role, Watson also led BSA's engagement on global privacy issues.

Watson has spearheaded BSA’s contributions to key dialogues with US and global policymakers, including through written comments on AI and privacy regulatory proposals; thoughtful contributions on best practices on AI governance; and as an expert speaker in key policy engagements, including the US Federal Trade Commission (FTC) hearings examining privacy approaches, a forum in India with policymakers on development of India’s privacy law, and a briefing on AI for Members of Congress.

Watson rejoined BSA after serving as a corporate in-house senior privacy and information security counsel for a Fortune 500 global entertainment company, where she advised business and technology units on CCPA and GDPR implementation and led development of global privacy compliance strategies.  

Prior to joining BSA, Watson served as an Attorney-Advisor in the Office of Chairwoman Edith Ramirez at the FTC in Washington, DC, where she advised Chairwoman Ramirez on privacy, data security, and international issues and evaluated companies’ legal compliance in over 50 enforcement actions. During her FTC tenure, which spanned more than a decade, Watson also served as an Attorney-Advisor in the Office of Commissioner Julie Brill, Counsel for International Consumer Protection in the Office of International Affairs, and an attorney in the Divisions of Privacy and Identity Protection and Marketing Practices.

In her various FTC positions, Watson played a key role on notable privacy, security, and consumer protection initiatives, including negotiating and/or implementing flagship programs advancing global data transfers, such as the  EU-U.S. Privacy Shield and APEC Cross-Border Privacy Rules, serving on the global expert committee conducting a review of the OECD’s seminal privacy guidelines, and contributing to influential policy reports -- by both the FTC and multilateral fora -- shaping responsible data practices in the context of emerging technologies. In recognition of her leadership on Internet policy and global domain name issues, Watson received the FTC's prestigious Paul Rand Dixon award. 

Prior to joining the FTC, Watson was an Associate at Hogan & Hartson, LLP (now Hogan Lovells) in Washington, DC, where she handled commercial litigation, international trade, and intellectual property matters.  

Watson has been active in advancing dialogues on privacy and AI, formerly serving on IAPP’s Education Advisory Board and the ABA’s big data task force, and as a current member of the Atlantic Council’s Transatlantic Task Force on AI and the National Bar Association’s privacy, security, and technology law section. Watson has also been a law school guest lecturer on international privacy. 

Watson clerked for Justice Peggy Quince at the Supreme Court of Florida and is a graduate of the University of Virginia School of Law in Charlottesville, VA.

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