How AI agents are quietly rebuilding the foundations of the global economy 

AI agents have rapidly moved from niche research concepts to one of the most discussed technology topics of 2025. Search interest for ‘AI agents’ surged throughout the year, reflecting a broader shift in how businesses and institutions approach automation and decision-making.

Market forecasts suggest that 2026 and the years ahead will bring an even larger boom in AI agents, driven by massive global investment and expanding real-world deployment. As a result, AI agents are increasingly viewed as a foundational layer of the next phase of the digital economy.

Computer, Electronics, Laptop, Pc, Hardware, Computer Hardware, Monitor, Screen, Computer Keyboard, Body Part, Hand, Person

What are AI agents, and why do they matter

AI agents are autonomous software systems designed to perceive information, make decisions, and act independently to achieve specific goals. Unlike traditional AI applications or conventional AI tools, which respond to prompts or perform single functions and often require direct supervision, AI agents are proactive and operate across multiple domains.

They can plan, adapt, and coordinate various steps across workflows, anticipating needs, prioritising tasks, and collaborating with other systems or agents without constant human intervention.

As a result, AI agents are not just incremental upgrades to existing software; they represent a fundamental change in how organisations leverage technology. By taking ownership of complex processes and decision-making workflows, AI agents enable businesses to operate at scale, adapt more rapidly to change, and unlock opportunities that were previously impossible with traditional AI tools alone. 

They fundamentally change how AI is applied in enterprise environments, moving from task automation to outcome-driven execution. 

Behind the scenes, autonomous AI agents are moving into the core of economic systems, reshaping workflows, authority, and execution across the entire value chain.

Why AI agents became a breakout trend in 2025

Several factors converged in 2025 to push AI agents into the mainstream. Advances in large language models, improved reasoning capabilities, and lower computational costs made agent-based systems commercially viable. At the same time, enterprises faced growing pressure to increase efficiency amid economic uncertainty and labour constraints. 

The fact is that AI agents gained traction not because of their theoretical promise, but because they delivered measurable results. Companies deploying AI agents reported faster execution, lower operational overhead, and improved scalability across departments. As adoption accelerated, AI agents became one of the most visible indicators of where new technology was heading next.

 Behind the scenes, autonomous AI agents are moving into the core of economic systems, reshaping workflows, authority, and execution across the entire value chain.

Global investment is accelerating the AI agents boom

Investment trends underline the strategic importance of AI agents. Venture capital firms, technology giants, and state-backed innovation funds are allocating significant capital to agent-based platforms, orchestration frameworks, and AI infrastructure. These investments are not experimental in nature; they reflect long-term bets on autonomous systems as core business infrastructure.

Large enterprises are committing internal budgets to AI agent deployment, often integrating them directly into mission-critical operations. As funding flows into both startups and established players, competition is intensifying, further accelerating innovation and adoption across global markets. 

The AI agents market is projected to surge from approximately $7.92 billion in 2025 to surpass $236 billion by 2034, driven by a compound annual growth rate (CAGR) exceeding 45%.

Behind the scenes, autonomous AI agents are moving into the core of economic systems, reshaping workflows, authority, and execution across the entire value chain.

Where AI agents are already being deployed at scale

Agent-based systems are no longer limited to experimental use, as adoption at scale is taking shape across various industries. In finance, AI agents manage risk analysis, fraud detection, reporting workflows, and internal compliance processes. Their ability to operate continuously and adapt to changing data makes them particularly effective in data-intensive environments.

In business operations, AI agents are transforming customer support, sales operations, procurement, and supply chain management. Autonomous agents handle inquiries, optimise pricing strategies, and coordinate logistics with minimal supervision.

One of the clearest areas of AI agent influence is software development, where teams are increasingly adopting autonomous systems for code generation, testing, debugging, and deployment. These systems reduce development cycles and allow engineers to focus on higher-level design and architecture. It is expected that by 2030, around 70% of developers will work alongside autonomous AI agents, shifting human roles toward planning, design, and orchestration.

Healthcare, research, and life sciences are also adopting AI agents for administrative automation, data analysis, and workflow optimisation, freeing professionals from repetitive tasks and improving operational efficiency.

Behind the scenes, autonomous AI agents are moving into the core of economic systems, reshaping workflows, authority, and execution across the entire value chain.

The economic impact of AI agents on global productivity

The broader economic implications of AI agents extend far beyond individual companies. At scale, autonomous AI systems have the potential to boost global productivity by eliminating structural inefficiencies across various industries. By automating complex, multi-step processes rather than isolated tasks, AI agents compress decision timelines, lower transaction costs, and remove friction from business operations.

Unlike traditional automation, AI agents operate across entire workflows in real time. It enables organisations to respond more quickly to market changes and shifts in demand, thereby increasing operational agility and efficiency at a systemic level.

Labour markets will also evolve as agent-based systems become embedded in daily operations. Routine and administrative roles are likely to decline, while demand will rise for skills related to oversight, workflow design, governance, and strategic management of AI-driven operations. Human value is expected to shift toward planning, judgement, and coordination. 

Countries and companies that successfully integrate autonomous AI into their economic frameworks are likely to gain structural advantages in terms of efficiency and growth, while those that lag behind risk falling behind in an increasingly automated global economy.

Behind the scenes, autonomous AI agents are moving into the core of economic systems, reshaping workflows, authority, and execution across the entire value chain.

AI agents and the future evolution of AI 

The momentum behind AI agents shows no signs of slowing. Forecasts indicate that adoption will expand rapidly in 2026 as costs decline, standards mature, and regulatory clarity improves. For organisations, the strategic question is no longer whether AI agents will become mainstream, but how quickly they can be integrated responsibly and effectively. 

As AI agents mature, their influence will extend beyond business operations to reshape global economic structures and societal norms. They will enable entirely new industries, redefine the value of human expertise, and accelerate innovation cycles, fundamentally altering how economies operate and how people interact with technology in daily life. 

The widespread integration of AI agents will also reshape the world we know. From labour markets to public services, education, and infrastructure, societies will experience profound shifts as humans and autonomous systems collaborate more closely.

Companies and countries that adopt these technologies strategically will gain a structural advantage, while those that lag behind risk falling behind in both economic and social innovation.

Ultimately, AI agents are not just another technological advancement; they are becoming a foundational infrastructure for the future economy. Their autonomy, intelligence, and scalability position them to influence how value is created, work is organised, and global markets operate, marking a turning point in the evolution of AI and its role in shaping the modern world.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Samsung puts AI trust and security at the centre of CES 2026

The South Korean tech giant, Samsung, used CES 2026 to foreground a cross-industry debate about trust, privacy and security in the age of AI.

During its Tech Forum session in Las Vegas, senior figures from AI research and industry argued that people will only fully accept AI when systems behave predictably, and users retain clear control instead of feeling locked inside opaque technologies.

Samsung outlined a trust-by-design philosophy centred on transparency, clarity and accountability. On-device AI was presented as a way to keep personal data local wherever possible, while cloud processing can be used selectively when scale is required.

Speakers said users increasingly want to know when AI is in operation, where their data is processed and how securely it is protected.

Security remained the core theme. Samsung highlighted its Knox platform and Knox Matrix to show how devices can authenticate one another and operate as a shared layer of protection.

Partnerships with companies such as Google and Microsoft were framed as essential for ecosystem-wide resilience. Although misinformation and misuse were recognised as real risks, the panel suggested that technological counter-measures will continue to develop alongside AI systems.

Consumer behaviour formed a final point of discussion. Amy Webb noted that people usually buy products for convenience rather than trust alone, meaning that AI will gain acceptance when it genuinely improves daily life.

The panel concluded that AI systems which embed transparency, robust security and meaningful user choice from the outset are most likely to earn long-term public confidence.

Would you like to learn more aboutAI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Chatbots under scrutiny in China over AI ‘boyfriend’ and ‘girlfriend’ services

China’s cyberspace regulator has proposed new limits on AI ‘boyfriend’ and ‘girlfriend’ chatbots, tightening oversight of emotionally interactive artificial intelligence services.

Draft rules released on 27 December would require platforms to intervene when users express suicidal or self-harm tendencies, while strengthening protections for minors and restricting harmful content.

The regulator defines the services as AI systems that simulate human personality traits and emotional interaction. The proposals are open for public consultation until 25 January.

The draft bans chatbots from encouraging suicide, engaging in emotional manipulation, or producing obscene, violent, or gambling-related content. Minors would need guardian consent to access AI companionship.

Platforms would also be required to disclose clearly that users are interacting with AI rather than humans. Legal experts in China warn that enforcement may be challenging, particularly in identifying suicidal intent through language cues alone.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Grok misuse prompts UK scrutiny of Elon Musk’s X

UK Technology Secretary Liz Kendall has urged Elon Musk’s X to act urgently after reports that its AI chatbot Grok was used to generate non-consensual sexualised deepfake images of women and girls.

The BBC identified multiple examples on X where users prompted Grok to digitally alter images, including requests to make people appear undressed or place them in sexualised scenarios without consent.

Kendall described the content as ‘absolutely appalling’ and said the government would not allow the spread of degrading images. She added that Ofcom had her full backing to take enforcement action where necessary.

The UK media regulator confirmed it had made urgent contact with xAI and was investigating concerns that Grok had produced undressed images of individuals. X has been approached for comment.

Kendall said the issue was about enforcing the law rather than limiting speech, noting that intimate image abuse, including AI-generated content, is now a priority offence under the Online Safety Act.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

California launches DROP tool to erase data broker records

Residents in California now have a simpler way to force data brokers to delete their personal information.

The state has launched the Delete Requests and Opt-Out Platform, known as DROP, allowing residents to submit one verified deletion request that applies to every registered data broker instead of contacting each company individually.

A system that follows the Delete Act, passed in 2023, and is intended to create a single control point for consumer data removal.

Once a resident submits a request, the data brokers must begin processing it from August 2026 and will have 90 days to act. If data is not deleted, residents may need to provide extra identifying details.

First-party data collected directly by companies can still be retained, while data from public records, such as voter rolls, remains exempt. Highly sensitive data may fall under separate legal protections such as HIPAA.

The California Privacy Protection Agency argues that broader data deletion could reduce identity theft, AI-driven impersonation, fraud risk and unwanted marketing contact.

Penalties for non-compliance include daily fines for brokers who fail to register or ignore deletion orders. The state hopes the tool will make data rights meaningful instead of purely theoretical.

A launch that comes as regulators worldwide examine how personal data is used, traded and exploited.

California is positioning itself as a leader in consumer privacy enforcement, while questions continue about how effectively DROP will operate when the deadline arrives in 2026.

Would you like to learn more aboutAI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Musk says users are liable for the illegal Grok content

Scrutiny has intensified around X after its Grok chatbot was found generating non-consensual explicit images when prompted by users.

Grok had been positioned as a creative AI assistant, yet regulators reacted swiftly once altered photos were linked to content involving minors. Governments and rights groups renewed pressure on platforms to prevent abusive use of generative AI.

India’s Ministry of Electronics and IT issued a notice to X demanding an Action Taken Report within 72 hours, citing failure to restrict unlawful content.

Authorities in France referred similar cases to prosecutors and urged enforcement under the EU’s Digital Services Act, signalling growing international resolve to control AI misuse.

Elon Musk responded by stating users, instead of Grok, would be legally responsible for illegal material generated through prompts. The company said offenders would face permanent bans and cooperation with law enforcement.

Critics argue that transferring liability to users does not remove the platform’s duty to embed stronger safeguards.

Independent reports suggest Grok has previously been involved in deepfake creation, creating a wider debate about accountability in the AI sector. The outcome could shape expectations worldwide regarding how platforms design and police powerful AI tools.

Would you like to learn more aboutAI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Plaud unveils compact AI NotePin S and new meeting app

Hardware maker Plaud has introduced a new AI notetaking pin called the Plaud NotePin S alongside a Mac desktop app for digital meeting notes ahead of CES in Las Vegas.

The wearable device costs 179 dollars and arrives with several accessories so users can attach or wear it in different ways. A physical button allows quick control of recordings and can be tapped to highlight key moments during conversations.

The NotePin S keeps the same core specifications as the earlier model, including 64GB of storage and up to 20 hours of continuous recording.

Two MEMS microphones capture speech clearly within roughly three metres. Owners receive 300 minutes of transcription each month without extra cost. Apple Find My support is also included, so users can locate the device easily instead of worrying about misplacing it.

Compared with the larger Note Pro, the new pin offers a shorter recording range and battery life, but the small size makes it easier to wear while travelling or working on the go.

Plaud says the device suits users who rely on frequent in-person conversations rather than long seated meetings.

Plaud has now sold more than 1.5 million notetaking devices. The company also aims to enter the AI meeting assistant market with a Mac desktop client that detects when a meeting is active and prompts users to capture audio.

The software records system sound and uses AI to organise the transcript into structured notes. Users can also add typed notes and images instead of relying only on audio.

Would you like to learn more aboutAI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Reddit overtakes TikTok in the UK social media race

In the UK, Reddit has quietly overtaken TikTok to become Britain’s fourth most-visited social media platform, marking a major shift in how people search for information and share opinions online.

Use of the platform among UK internet users has risen sharply over the past two years, driven strongly by younger audiences who are increasingly drawn to open discussion instead of polished influencer content.

Google’s algorithm changes have helped accelerate Reddit’s rise by prioritising forum-based conversations in search results. Partnership deals with major AI companies have reinforced visibility further, as AI tools increasingly cite Reddit threads.

Younger users in the UK appear to value unfiltered and experience-based conversations, creating strong growth across lifestyle, beauty, parenting and relationship communities, alongside major expansion in football-related discussion.

Women now make up more than half of Reddit’s UK audience, signalling a major demographic shift for a platform once associated mainly with male users. Government departments, including ministers, are also using Reddit for direct engagement through public Q&A sessions.

Tension remains part of the platform’s culture, yet company leaders argue that community moderation and voting systems help manage behaviour.

Reddit is now encouraging users to visit directly instead of arriving via search or AI summaries, positioning the platform as a human alternative to automated answers.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Musk’s Grok under fire over ‘nudify’ image edits

Grok, the AI chatbot built into Elon Musk’s social platform X, has been used to produce sexualised ‘edited’ images of real people, including material that appeared to involve children. In a statement cited in the report, Grok attributed some of the outputs to gaps in its safeguards that allowed images showing ‘minors in minimal clothing,’ and said changes were being made to prevent repeat incidents.

One case described a Rio de Janeiro musician, Julie Yukari, who posted a New Year’s Eve photo on X and then noticed other users tagging Grok with requests to alter her image into a bikini-style version. She said she assumed the bot would refuse, but AI-generated, near-nude edits of her image later spread on the platform.

The report suggested that the misuse was widespread and rapidly evolving. In a brief midday snapshot of public prompts, it counted more than 100 attempts in 10 minutes to get Grok to swap people’s clothing for bikinis or more revealing outfits. In dozens of cases, the tool complied wholly or partly, including instances involving people who appeared to be minors.

The episode has also drawn attention from officials outside the US. French ministers said they referred the content to prosecutors and also flagged it to the country’s media regulator, asking for an assessment under the EU’s Digital Services Act. India’s IT ministry, meanwhile, wrote to X’s local operation saying the platform had failed to stop the tool being used to generate and circulate obscene, sexually explicit material.

Specialists quoted in the report argued the backlash was predictable: ‘nudification’ tools have existed for years, but placing a powerful image editor inside a significant social network drastically lowers the effort needed to misuse it and helps harmful content spread. They said civil-society and child-safety groups had warned xAI about likely abuse, while Musk reacted online with joking posts about bikini-style AI edits, and xAI previously brushed off related coverage with the phrase ‘Legacy Media Lies.’

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Universities in Ireland urged to rethink assessments amid AI concerns

Face-to-face interviews and oral verification could become a routine part of third-level assessments under new recommendations aimed at addressing the improper use of AI. Institutions are being encouraged to redesign assessment methods to ensure student work is authentic.

The proposals are set out in new guidelines published by the Higher Education Authority (HEA) of Ireland, which regulates universities and other third-level institutions. The report argues that assessment systems must evolve to reflect the growing use of generative AI in education.

While encouraging institutions to embrace AI’s potential, the report stresses the need to ensure students are demonstrating genuine learning. Academics have raised concerns that AI-generated assignments are increasingly difficult to distinguish from original student work.

To address this, the report recommends redesigning assessments to prioritise student authorship and human judgement. Suggested measures include oral verification, process-based learning, and, where appropriate, a renewed reliance on written exams conducted without technology.

The authors also caution against relying on AI detection tools, arguing that integrity processes should be based on dialogue and evidence. They call for clearer policies, staff and student training, and safeguards around data use and equitable access to AI tools.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!