Thought Leadership January 15, 2025

AI Agents in 2025: How Agentic AI Will Transform SaaS

Ivan's take on the rise of autonomous AI agents and what it means for startups building the next generation of software.

Ivan Smirnov

Founder, Smirnov Labs

The AI landscape is undergoing a fundamental shift. While ChatGPT and similar tools demonstrated the power of large language models, the next frontier is agentic AI—systems that don’t just respond to prompts, but autonomously plan, execute, and adapt to achieve complex goals.

As someone who’s been exploring agentic AI systems and MCP (Model Context Protocol) servers in my spare time, I’m convinced this technology will redefine how we build software—especially in the SaaS space.

What Are AI Agents?

An AI agent is an AI system that can:

  • Set and pursue goals autonomously
  • Make decisions based on changing circumstances
  • Use tools to interact with external systems
  • Learn and adapt from feedback
  • Break down complex tasks into manageable steps

Unlike traditional AI that simply predicts the next token or classifies data, agents can orchestrate multi-step workflows, call APIs, query databases, and coordinate with other systems to achieve objectives.

Why 2025 Is the Inflection Point

Several converging trends make 2025 the year agents go mainstream:

1. Model Capabilities Have Crossed the Threshold

GPT-4 and Claude 3.5 Sonnet can reliably follow complex instructions, use tools, and maintain context over long conversations. Earlier models struggled with multi-step reasoning—today’s models excel at it.

2. Standardization of Agent Frameworks

Frameworks like LangChain, AutoGPT, and the Model Context Protocol (MCP) are maturing. MCP, in particular, provides a standardized way for AI models to securely connect to data sources and tools—solving a major integration challenge.

3. Cost Economics Are Favorable

API costs have dropped 10x in two years. What cost $100 in 2023 costs $10 in 2025. This makes always-on agent systems economically viable.

4. Developer Experience Is Improving

Building agents used to require deep ML expertise. Now, tools like Claude Code, Cursor, and GitHub Copilot let developers prototype agent behaviors quickly. The barrier to entry is dropping fast.

How Agents Will Transform SaaS

From “Software as a Service” to “Service as Software”

Traditional SaaS gives you tools. You still do the work. Agentic SaaS does the work for you.

Example transformations:

  • CRM: From “track your sales pipeline” to “the agent qualifies leads, schedules meetings, and drafts proposals”
  • Marketing: From “email automation” to “the agent writes campaigns, optimizes send times, and A/B tests copy”
  • Customer Support: From “ticketing system” to “the agent resolves 80% of tickets without human intervention”

Vertical AI Agents Will Dominate

Generic agents are impressive demos. Vertical agents trained on domain-specific workflows will capture value.

Startups building agents for:

  • Legal document review (analyzing contracts, identifying risks)
  • Medical coding (translating clinical notes to billing codes)
  • Financial analysis (monitoring portfolios, generating reports)
  • Supply chain optimization (predicting delays, rerouting shipments)

These vertical agents have deep knowledge of industry workflows, regulations, and best practices—creating defensible moats.

Technical Architecture for Agentic Systems

Building production-grade agents requires more than prompting an LLM. Here’s the architecture I recommend:

Core Components

┌─────────────────────────────────────────────┐
│            Agent Orchestrator               │
│  (Planning, Task Decomposition, Memory)     │
└──────────────┬──────────────────────────────┘

               ├──────────┬──────────┬─────────┐
               ▼          ▼          ▼         ▼
           ┌─────┐   ┌─────┐   ┌─────┐   ┌─────┐
           │ LLM │   │Tools│   │ DB  │   │ API │
           │Core │   │     │   │     │   │     │
           └─────┘   └─────┘   └─────┘   └─────┘

Key design principles:

  1. Stateful Memory: Agents need short-term (conversation) and long-term (learned patterns) memory
  2. Tool Abstractions: Clean interfaces for the LLM to invoke external functions
  3. Error Handling: Agents will fail—build retry logic and graceful degradation
  4. Observability: Log every decision, tool call, and outcome for debugging
  5. Human-in-the-Loop: For high-stakes decisions, require human approval

The MCP Advantage

Model Context Protocol (MCP) is becoming the standard for agent-to-tool communication. It provides:

  • Secure access to company data without exposing raw credentials
  • Standardized tool interfaces that work across different AI models
  • Permission controls to limit what agents can do

I’ve been building MCP servers for client projects, and the pattern is powerful. Instead of building custom integrations for every AI model, you build one MCP server, and any agent can use it.

Challenges and Risks

Agentic AI isn’t without problems:

1. Reliability and Hallucinations

Agents can confidently execute incorrect plans. Production systems need:

  • Validation steps before taking irreversible actions
  • Confidence scoring on agent decisions
  • Fallback to human review for edge cases

2. Cost Management

Agentic workflows can rack up API costs quickly. Mitigate with:

  • Caching of common responses
  • Smaller models for routine tasks, larger models for complex reasoning
  • Rate limiting and cost budgets per user

3. Security and Compliance

Giving AI access to company data and tools creates risk:

  • Least privilege access: Only grant the permissions agents absolutely need
  • Audit trails: Log every action for compliance
  • Data boundaries: Keep sensitive data in secure enclaves

Building Your First Agent

If you’re a startup founder or CTO, here’s how to get started:

Step 1: Identify a High-ROI Use Case

Don’t build a general-purpose agent. Find a repetitive, high-volume task where automation delivers clear value:

  • Customer onboarding workflows
  • Data entry and validation
  • Report generation
  • Lead qualification

Step 2: Start Small

Build a prototype with:

  • One clear goal (e.g., “qualify inbound leads”)
  • 3-5 tools the agent can use (CRM API, email, web search)
  • Human review of all decisions initially

Step 3: Iterate on Feedback

Agents improve through use. Collect feedback on:

  • Where the agent succeeded
  • Where it failed or needed human intervention
  • How users would describe success

Use this data to refine prompts, add tools, and improve decision logic.

Step 4: Scale Gradually

Once you have 80%+ accuracy on your target task:

  • Reduce human oversight
  • Expand to adjacent use cases
  • Build monitoring and alerting

The Opportunity for Startups

We’re entering a Cambrian explosion of agentic applications. The winners will:

  1. Pick a vertical and go deep on workflows
  2. Build trust through transparency and explainability
  3. Start with augmentation, not full automation (help humans, don’t replace them yet)
  4. Obsess over UX—agents should feel magical, not clunky

The startups I’m advising are already experimenting with agents for everything from dev tooling to supply chain management. The common thread: they’re solving real pain with agents that take actions, not just provide information.

Conclusion

Agentic AI is the next platform shift—comparable to mobile, cloud, and the web before it. The technology is ready. The infrastructure is maturing. The opportunity is massive.

For startups, the question isn’t if you should explore agents—it’s which workflows to automate first and how quickly you can ship.

If you’re building in this space and want a sounding board for technical architecture or product strategy, let’s chat. I’m knee-deep in agentic systems and love talking shop.


Want to discuss your agentic AI strategy? Schedule a consultation to explore how AI agents can transform your product.

Need Expert Technology Leadership?

If the challenges discussed in this article resonate with you, let's talk. I help startups navigate complex technology decisions, scale their teams, and build products that last.

Ivan Smirnov