The supply of agentic artificial intelligence (AI) platforms, products, and models currently outpaces demand, with a market correction expected to follow, according to Gartner. The research and advisory firm stated that short-term consolidation is likely as enthusiasm and fear of missing out subside, giving way to market fundamentals. Companies unable to differentiate their offerings may exit the market, while firms with greater capital reserves are expected to acquire viable technologies and personnel.
Gartner analysts compared the situation to past corrections in sectors such as energy, telecommunications, and the dot-com era, noting that such periods typically reflect a phase in the broader product lifecycle rather than an impending economic crisis. Will Sommer, Senior Director Analyst at Gartner, said the current adjustment should be understood as a transitional stage requiring companies to align their business models with the capabilities of emerging technologies.
According to Gartner, the rapid emergence of agentic AI providers—offering both standalone models and integrated platforms—has outpaced customer readiness and adoption. As demand lags behind supply, the market is entering a phase of rationalisation. While consolidation may bring short-term disruption, Gartner expects it to support long-term development by enabling stronger players to produce solutions that better align with business and technical requirements.
Sommer noted that, unlike speculative bubbles linked to financial engineering or systemic risk, the agentic AI correction is occurring in a market with a fundamentally viable product. However, he cautioned that if investment activity becomes detached from the technology’s real economic value, a speculative bubble could still form.
Signs of consolidation are already emerging as larger technology firms acquire smaller, specialised AI companies. This activity is expected to bring scale efficiencies and more integrated ecosystems, improving the performance of agentic AI systems. Gartner highlighted domain-specific language models as one area of innovation, offering more effective solutions for specialised applications.
As businesses adapt to changes in tools, workflows, and user behaviour, the adoption of agentic AI is projected to accelerate. Gartner expects that surviving providers will establish sustainable growth patterns, and that market maturity will eventually exceed current adoption expectations, driven by measurable productivity and economic returns.
