These digital agents, designed to browse, compare and purchase products on behalf of users, are not just a technological novelty. They are a harbinger of significant shifts in the commercial and payments ecosystems.

Fundamental to this shift is both convenience and efficiency. These agents, leveraging sophisticated algorithms, can perform tasks that traditionally require human intervention and effort. Whether it’s personalised shopping experiences or automated transactions, AI agents enhance the consumer journey by making it more seamless and intuitive, thereby boosting customer satisfaction and loyalty.

Such is the potency of agentic AI that businesses are already adopting it in order to stay competitive. But its use is not just as a tool for customer experience. AI agents can handle vast amounts of data, arming businesses with insights that help optimise their operations and marketing strategies.

But there’s always a but… the payments ecosystem needs to keep pace. Traditional payment systems are being challenged to accommodate the unique requirements and protocols of agentic transactions. The concept of Know Your Agent (KYA) is becoming critical in this new paradigm. Just as Know Your Customer (KYC) protocols are essential to verify human identities, KYA will be crucial for authenticating AI agents.

And imperative to authentication is secure cryptography. Without robust verification, the risk of fraud and unauthorised transactions could undermine trust in agentic commerce. So payment processors, financial institutions, and technology providers must collaborate to establish industry-wide standards that ensure the integrity and security of AI-driven transactions.

The question is whether the pace of Agentic AI’s uptake can be matched by the security processes it needs.

The rise of AI agents in e-commerce also brings new challenges in fraud detection and prevention. Traditional fraud detection systems may struggle to differentiate between legitimate AI agents and malicious bots. These security gaps can lead to increased vulnerability to fraud from cybercriminals.

To mitigate these risks, businesses must invest in advanced fraud detection technologies that can accurately identify and authenticate AI agents. By continuously analysing transaction patterns and agent behaviours, machine learning and AI-driven security solutions can detect anomalies and potential threats in real-time.

The question is whether the pace of Agentic AI’s uptake can be matched by the security processes it needs.

The future of agentic commerce hinges on the ability of businesses and technology providers to crack both security and authentication. As the industry adopts more AI agents, it will require essential universal standards for agent verification.

Businesses that embrace these technologies and proactively address the associated risks will be well-positioned to thrive in this new era of digital commerce.

By prioritising security, innovation, and customer experience, companies can harness the full potential of AI agents to drive growth and success.