What is Agentic AI?
Agentic AI is a type of artificial intelligence that can act independently to achieve specific goals, rather than just processing information or following strict instructions. Think of it like having a smart assistant who doesn't just respond to your commands, but actively thinks about what needs to be done and makes decisions on its own. In the context of banking, this means AI systems that can monitor trading activities, detect unusual patterns, and flag potential issues without needing constant human oversight.
How Does Agentic AI Work?
Unlike traditional AI systems that simply scan for specific keywords or follow pre-programmed rules, agentic AI uses more advanced reasoning capabilities. It's like teaching a student to think critically rather than just memorize facts.
These systems typically work by:
- Observing patterns in real-time data streams
- Reasoning through complex scenarios using machine learning models
- Deciding what actions to take based on their analysis
- Adapting their behavior as they learn from new situations
Imagine a bank's trading surveillance system that can recognize when a trader's behavior suddenly changes from normal patterns, like trading volumes increasing dramatically or unusual timing of trades. Instead of just flagging these events, agentic AI can analyze the context, consider multiple factors, and determine if human review is necessary.
Why Does This Matter?
Traditional trade surveillance systems often create too many false alarms or miss subtle but important warning signs. Agentic AI addresses these limitations by providing more nuanced monitoring. For major banks like Goldman Sachs and Deutsche Bank, this means:
- Reduced false positives - fewer unnecessary alerts for human review
- Better detection of suspicious activity - identifying patterns that might be missed by rule-based systems
- Increased efficiency - allowing human experts to focus on genuinely concerning cases
- Real-time response capability - immediate analysis of trading behavior as it happens
This technology is particularly valuable in financial markets where even small irregularities can signal larger problems, such as market manipulation or compliance violations.
Key Takeaways
Agentic AI represents a significant evolution in how artificial intelligence is used for monitoring and decision-making. It's not just about automation - it's about creating systems that can think and act more like humans do. In banking, this technology promises to make trade surveillance more effective, efficient, and accurate. As this technology develops, we can expect to see it applied in other areas where intelligent monitoring and decision-making are crucial, from cybersecurity to healthcare diagnostics.
