Google unveils new AI agent toolkit

Despite the hype, analysts warn that AI agents are far from replacing human workers, and businesses need to carefully manage costs and complexity in their adoption.

Google has offered US federal agencies a 71% discount on its Workspace suite, aiming to save the government up to $2 billion if widely adopted.

This week at Google Cloud Next in Las Vegas, Google revealed its latest push into ‘agentic AI’. A software designed to act independently, perform tasks, and communicate with other digital systems.

Central to this effort is the Agent Development Kit (ADK), an open-source toolkit said to let developers build AI agents in under 100 lines of code.

Instead of requiring complex systems, the ADK includes pre-built connectors and a so-called ‘agent garden’ to streamline integration with data platforms like BigQuery and AlloyDB.

Google also introduced a new Agent2Agent (A2A) protocol, aimed at enabling cooperation between agents from different vendors. With over 50 partners, including Accenture, SAP and Salesforce, already involved, the company hopes to establish a shared standard for AI interaction.

Powering these tools is Google’s latest AI chip, Ironwood, a seventh-generation TPU promising tenfold performance gains over earlier models. These chips, designed for use with advanced models like Gemini 2.5, reflect Google’s ambition to dominate AI infrastructure.

Despite the buzz, analysts caution that the hype around AI agents may outpace their actual utility. While vendors like Microsoft, Salesforce and Workday push agentic AI to boost revenue, in some cases even replacing staff, experts argue that current models still fall short of real human-like intelligence.

Instead of widespread adoption, businesses are expected to focus more on managing costs and complexity, especially as economic uncertainty grows. Without strong oversight, these tools risk becoming costly, unpredictable, and difficult to scale.

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