Despite its promising growth, the Agentic AI Market faces several challenges and ethical concerns that require careful consideration. One of the primary challenges is the lack of transparency in AI decision-making processes. Autonomous AI agents often operate using complex algorithms that are difficult to interpret, raising concerns about accountability and trust. Organizations must ensure that AI systems provide explainable outcomes to gain user confidence and meet regulatory requirements.

Data privacy and security are also significant concerns in agentic AI adoption. AI agents rely on large volumes of data, which increases the risk of data breaches and unauthorized access. Implementing robust cybersecurity measures and complying with data protection regulations are essential for maintaining secure AI operations. Ethical considerations related to job displacement and workforce transformation also influence market dynamics. As agentic AI automates tasks traditionally performed by humans, organizations must invest in workforce reskilling programs to ensure a smooth transition to AI-driven operations. Addressing these challenges is crucial for sustainable market growth and responsible AI deployment.