There’s automation, and then there’s agentic automation. 

Traditional automation has rigid predefined rules and workflows, but agentic automation utilizes AI agents that can adapt, make decisions, and respond to dynamic environments. An agentic AI workflow is a series of connected steps dynamically executed by an agent, or a series of agents, to achieve a specific task. 

There is often confusion around the difference between agentic AI and generative AI; Agentic AI is able to take autonomous actions to achieve goals, whereas generative AI can create content based on patterns of data it was previously trained on. An agentic AI workflow can reason through problems, adjust its approach when obstacles arise, and continuously improve based on experience.

When utilizing AI in ecommerce, agentic workflows represent a fundamental shift from reactive to proactive operations. Traditional automation may be able to handle simple tasks like sending order confirmations, but agentic workflows in AI can manage complex processes like dynamic pricing, inventory optimization, and personalized customer journeys. 

And they can do all of that while adapting to real-time conditions. 

This article will explore how agentic workflows function, their key components, and practical applications that can transform your business operations. 

What are agentic workflows?

Agentic workflows are AI-driven processes where autonomous AI agents make decisions, coordinate tasks, and take actions with minimal human intervention. “Agentic” refers to the system’s ability to act independently, exhibit agency, and pursue goals intentionally. 

What makes a workflow ‘agentic’?

There are three characteristics that distinguish agent workflows from traditional automation:

1. Autonomy. The AI agent doesn’t need constant human intervention, and can make decisions on its own based on the data it receives. For example, an inventory management agent could automatically order reorder stock when levels drop below optimal thresholds without waiting for human approval.
2. Adaptability. These workflows adjust their approach based on new information or changing conditions. Agents don’t simply move from task to task – they evaluate outcomes and continuously refine their approach based on experience.
3. Learning from experience. Agentic workflows enable the agent to learn from the actions it takes over time. This could involve improving the decision-making process by evaluating previous outcomes and adjusting tactics for better results in the future. 

How agentic workflows differ from traditional automation

In traditional automation systems, the processes follow predetermined rules and are unable to adapt when conditions change. This approach is sufficient for repetitive tasks that follow a standard structure, but agentic workflows are dynamic and offer more flexibility by adapting to real-time data and unexpected conditions.

A traditional automated email system might send the same promotional message to all customers. An agentic workflow would instead analyze each customer’s purchase history, browsing behavior, and engagement patterns to instead personalize the message, adjust send times, and optimize subject lines based on what drives the highest open rates for each individual. 

How do agentic workflows work?

To understand how agentic workflows work, let’s examine a typical agentic workflow process:

1. Input processing. The system receives a request or detects a trigger event.
2. Goal analysis. AI agents analyze the objective and break it down into manageable tasks. 
3. Planning. Agents create a flexible execution plan, selecting the appropriate tools and resources.
4. Execution. Agents perform tasks while monitoring progress and adapting to obstacles. 
5. Evaluation. The system assesses outcomes and updates its knowledge for future tasks.
6. Iteration. If needed, agents refine their approach and repeat relevant steps. 

Key components of agentic workflows

For agentic workflows to function effectively, they require a suite of technologies and architectural building blocks. The following components make up the foundation of a well-functioning agentic system.

• AI Agents. These are specialized software programs that observe data inputs, make decisions based on their programming, and take actions to complete specific tasks within a workflow. Each agent has specific capabilities and can collaborate with other agents to accomplish complex objectives. 
• Large Language Models (LLMs). At the core of AI agents are large language models. LLMs are crucial for processing and generating natural language. They provide the reasoning capabilities that enable agents to understand context, make decisions, and communicate effectively. 
• Tools and integrations. Agents access internal systems through APIs, databases, web search capabilities, and other tools. For an LLM to acquire information beyond the data used in training the model, we must provide tools. Examples of commonly used tools include external datasets, web searches, and application programming interfaces (APIs). 
• Memory systems. To capture and store context and feedback across multiple user interactions and sessions, an agentic workflow requires a memory system. Agents maintain both short-term memory (immediate context) and long-term memory (accumulated knowledge over time). 
• Workflow orchestration. Orchestration systems coordinate the activities of various AI components, RPA processes, and human operators to ensure they work effectively in a structured way. 
• Natural language processing (NLP). Natural language processing (NLP) enables workflows to understand and generate human language, essential for text or speech-driven tasks.
• Prompt engineering. Agentic workflows are heavily dependent on the quality of provided prompts. Prompt engineering helps generative AI models better comprehend and respond to a wide range of queries, from simple to highly technical. 
• Multiagent collaboration. Communication and distributed problem-solving with multiagent (MASs) are key for complex use cases. Each agent within a MAS can be designated a set of tools, algorithms, and a domain of “expertise” so that agents are not all relearning the same information. 

Types of agentic workflows

As agentic workflows continue to evolve, they often all start with a building block: an augmented LLM. Any agentic system will need to use tools, retrieve data, and retain memory. Agentic workflows can actively generate their own search queries, select appropriate tools, and determine which information to retain in order to accomplish the task at hand.

According to Anthropic, there are five main types of agentic workflows:

1. Prompt chaining. Prompt chaining breaks a task down into a sequence of steps, where each LLM call processes the output of a previous one. There’s an option to add programmatic checks or intermediate steps to ensure the process is still on track. This type of workflow is ideal for situations where a task can be easily and cleanly decomposed into fixed subtasks. For example, if you were to generate marketing copy then translate it into a different language. 

2. Routing. Routing classifies an input and directs it to a specialized followup task. This workflow allows for separation of concerns, then building more specialized prompts. For example, with customer service queries you can send general questions, refund requests, or technical support to the appropriate tools down the line. 

3. Parallelization. Sometimes, LLM agents can work simultaneously on a task to have the outputs aggregated at the end. The parallelization workflow can work either by sectioning (breaking a task into independent subtasks that run in parallel), or by voting (running the same task multiple times to get diverse outputs). 

4. Orchestrator-workers. A central LLM dynamically breaks down tasks, delegates them to certain worker LLMs, and then synthesizes their results. This workflow is great for complex tasks where you can’t predict which subtasks might be needed. For example, a search task that involves gathering and analyzing information from multiple sources to produce relevant information. 

5. Evaluator-optimizer. One LLM call will generate a response, while another provides evaluation and feedback in a loop. This workflow is great when you have clear evaluation criteria and when iterative refinement provides measurable value. For example, using the evaluator-optimizer workflow can be useful for literary translation as there are nuances the LLM might not capture initially, but an evaluator can provide the necessary critiques.

Examples of agentic workflows

The power of agentic automation shines in real-world applications. Let’s look at how agentic workflows can be used across ecommerce—from inventory optimization to dynamic pricing—to solve complex problems with minimal human input.

Ecommerce inventory management 

Adaptive automation is where agentic workflows shine, and in an ecommerce environment, inventory is always in flux. An agentic inventory management system continuously monitors stock levels across multiple warehouses and sales channels. When certain products approach reorder thresholds, the agent doesn’t just go ahead and place an order for more stock.

Instead, it analyzes the seasonal trends, any upcoming promotions, lead times for suppliers, and the current market demand for that product. If an agent discovers that there’s a 40% higher demand for that product during holiday seasons, it might adjust its reorder quantity accordingly. When a supplier experiences delays, an agent can automatically search for alternative suppliers or adjust a marketing campaign to promote products that have better stock levels. 

The inventory management system can also coordinate with pricing agents to optimize margins and marketing agents to adjust promotional strategies based on inventory levels. As an example of the orchestrator-worker, the agent ensures all business functions can remain aligned without manual intervention.

Customer service automation

With complex, multi-step processes involved in customer service interactions, an agentic workflow can help to route the inquiry to the appropriate stream to resolve it. 

For example, a technical support agentic workflow could involve:

• A diagnostic agent that guides customers through troubleshooting steps
• A knowledge base agent that searches for relevant solutions
• An escalation agent that determines when the situation requires a human
• A follow-up agent that ensures customer satisfaction

A customer might start a chat with a request like “I ordered a watch yesterday but need to change the delivery address and add gift wrapping. My order number is #3334.” The first step in the process is for the routing agent to identify the multiple intents in the message: order modification, address change, and gift services. It taps in the order management agent that confirms it’s able to change the delivery address, as the order is still in processing and hasn’t shipped. Then, a product agent would check gift wrapping availability for the specific watch, while a customer profile agent would confirm the customer is a premium customer that qualifies her for free gift wrapping. 

Once an orchestrator agent coordinates all of the information from the others, it presents a comprehensive solution to the customer: “I can update your delivery address to the new location and add complimentary gift wrapping since you’re a premium member. Would you like me to proceed with these changes?” 

After the customer confirms, an agent updates the order, triggers the fulfillment team, and sends confirmation details, and it’s all done without human intervention. 

Dynamic pricing optimization

Agentic pricing workflows continuously monitor market conditions, competitor prices, inventory levels, and demand patterns to optimize revenue. The system might include:

• A market analysis agent that tracks competitor pricing and market trends
• A demand forecasting agent that predicts sales based on historical data and external factors
• A pricing optimization agent that calculates optimal price points
• A testing agent that runs A/B tests to validate pricing strategies

AI-powered dynamic pricing can also adjust prices in real-time to maximize sales when demand is high, or to offer discounts and deals most likely to resonate with customers. A workflow can adjust prices during peak demand periods, respond to price changes from competitors, and consider inventory levels to maximize both revenue and customer satisfaction. 

Benefits of agentic workflows

Deploying agentic workflows can fundamentally improve operational efficiency and intelligence across your business. Here are some of the most compelling advantages these systems offer.

• Increased efficiency and scalability. By breaking tasks into clearly defined subtasks and automating each step, agentic workflows accomplish work faster, reduce human interventions and unnecessary handoffs. Unlike traditional systems that require manual scaling, agentic workflows adapt to increased workload automatically. With a growing ecommerce business, this means handling seasonal traffic spikes, processing thousands of orders, and managing customer inquiries without adding more headcount.
• Reduced human error. Agentic workflows can minimize human error by having AI agents that follow precise logic, which significantly reduces the amount of data entry mistakes, overlooked details and inconsistencies. These can be particularly frequent in repetitive or high-volume tasks. 
• Continuous improvement. Unlike traditional workflows that remain static, agentic workflows continuously learn, adapt, and improve over time. Leveraging reinforcement from real-time feedback, these workflows autonomously adjust when new data arrives or conditions change, often uncovering efficiencies that humans might miss. 
• Enhanced decision-making. Analyzing real-time patterns lets you forecast demand, prep for peak periods, and catch shifts in customer behavior before they impact your bottom line. Agentic workflows provide data-driven insights that enable proactive rather than reactive business decisions. 
• Cost optimization. Agentic workflows can significantly reduce operational costs while also improving quality of service by automating complex processes and improving resource allocation.  

Limitations and challenges of agentic workflows

Despite their promise, agentic workflows come with their own set of hurdles. Organizations need to be aware of these challenges to implement AI automation responsibly and effectively.

• Technical complexity. Building and maintaining agentic workflows requires significant technical expertise, skilled developers, data scientists, and AI specialists in order to design, implement, and monitor these systems effectively. Integrating multiple AI agents, LLMs, and external tools creates complex dependencies that can be difficult to troubleshoot when issues arise.
• Hallucinations and accuracy issues. Sometimes, AI simply makes things up. LLMs are guilty of generating plausible but incorrect information, which can lead to decisions based on flawed assumptions. Organizations should implement validation mechanisms and human oversight in order to catch and correct these errors.
• Security and privacy concerns. Agentic workflows often access sensitive business data and external systems, creating potential security vulnerabilities. Organizations must ensure proper access controls, data encryption, and monitoring to prevent unauthorized access or data breaches. Privacy compliance is also a concern, especially in regulated industries.
• Coordination failures. Multi-agent systems should have access to subagents who specialize in specific tasks. However, when multiple agents work together, coordination failures can occur. This can lead to conflicting actions, duplicated efforts, or a missed handoff between agents.
• Unpredictable behavior. Current LLM-based agents have limited problem solving abilities, especially for longer horizon tasks. This is due to their difficulty in interfacing with the environment (and humans), lack of common sense, and even a tendency towards self-deception. When workflows become more autonomous, their behavior can be difficult to predict or explain, which makes it challenging to understand why certain decisions are made. 
• Integration challenges. Many organizations struggle to integrate agentic workflows with existing legacy systems, databases, and business processes. The complexity of connecting modern AI systems with older infrastructure can create bottlenecks and compatibility issues. 
• Cost and resource requirements. While agentic workflows can provide a significant return on investment, the initial investment in development, infrastructure, and ongoing maintenance can be substantial. Organizations need to carefully evaluate the cost-benefit ratio for their specific use cases. 

Future trends in agentic workflows

The field of agentic automation is rapidly evolving. Here’s a look at what’s ahead — from better orchestration and reasoning to improved human-AI collaboration and regulatory frameworks.

• Improved human-AI collaboration. As we give more and more control to these workflows, we often need to include a human in the loop to make sure they’re not going off the rails. Future developments will focus on creating more intuitive interfaces for human oversight and intervention. A human-in-the-loop (HITL) system allows seamless collaboration between human experts and AI agents, combining human judgement with the efficiency of AI.
• Enhanced reasoning capabilities. Agentic AI systems – which aim to solve long-horizon tasks through sophisticated reasoning with minimal human oversight – have become a central focus of current AI development. In the future, agentic workflows will feature improved reasoning capabilities, enabling them to handle more complex scenarios and make more nuanced decisions.
• Advanced orchestration. Future systems will be even better at orchestration, enabling seamless coordination between hundreds of specialized agents working together on complex business processes.
• Regulation and governance. Currently, AI is advancing faster than any government can regulate. As agentic workflows become more prevalent, it’s expected that governance frameworks, industry standards, and regulatory guidelines will be implemented to ensure agentic workflows are deployed responsibly.

Conclusion

Agentic workflows are an evolution from rigid automation to intelligent, adaptive systems that can reason, learn, and improve over time. For ecommerce businesses and analytics teams, an AI automation workflow offers an unprecedented opportunity to optimize operations, enhance customer experiences, and drive growth through data-driven decision-making.

There may still be challenges around complexity, reliability, and integration, but the potential benefits of increased efficiency, reduced errors, and continuous improvement make agentic workflows a compelling investment for forward-thinking organizations. 

To be successful with agentic workflows, it’s important to start with well-defined use cases, implement monitoring and validation systems, and to keep humans in the loop to make sure things don’t fall off track. The technology will continue to mature, and agentic workflows are expected to become increasingly accessible for businesses of all sizes. By understanding how these systems work now, businesses position themselves to leverage the full potential of AI-driven automation in the future. 

Ready to explore how agentic workflows can transform your ecommerce operations? Learn more about AI agents for ecommerce and discover how artificial intelligence can drive growth for your business.