- Published on September 27, 2025
- In AI Features
Enterprises Beware: Agent-Washing Clouds the Future of AI
Vendors mislabel copilots as agents, raising regulatory and operational risks for firms chasing the promise of agentic AI.
Image by Nalini Nirad
- By C P Balasubramanyam
Most vendors are mislabeling their products as “agentic AI,” setting unrealistic expectations around tools that are essentially copilots or intelligent automation with a chat interface, according to new research from HFS.
This “agentic-washing” — the gap between what is marketed and what is actually sold — has become the next big trust issue in enterprise AI. Vendors are rebadging copilots as “agents” to imply autonomy and business impact, according to the research authored by Hansa Iyengar, practice leader (BFS & IT Services) at HFS Research.
A report by Research and Markets on AI Agents projected the AI Agents market to grow from $5.1 billion in 2024 to $47.1 billion in 2030, with a CAGR of 44.8% during 2024-2030.
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C P Balasubramanyam
Bala is a journalist covering Indian tech companies and startups from Bengaluru.
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