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4 Ways Agentic AI Could Transform IT Operations

Eric Johnson
PagerDuty

The next generation of AI is already here. It may have been mere months since organizations adopted generative AI (GenAI), but now there's a new kid on the block and it promises to offer even greater benefits to businesses and IT operations teams in particular. In fact, research reveals that more than half of companies in the US, UK, Australia and Japan have already adopted agentic AI, with most expecting an ROI of over 100%.

The key to success will be to avoid repeating the adoption mistakes of the past and to start small with manageable projects.

A New Era of Productivity

Agentic AI promises another great leap forward.

The machine-based intelligence is capable of working autonomously to achieve pre-determined goals. In the process, it is capable of adjusting to any unseen bumps in the road through reasoning, iterative planning and adaptive problem-solving. While GenAI focuses on creating content and requires human input in the form of prompts, its agentic cousin acts independently with little or no intervention, making decisions based on data and objectives. Unlike GenAI, it continuously learns and adapts.

It's not difficult to see the huge potential here for enhancing business performance, upskilling workers and relieving them from manual toil. Gartner believes that at least 15% of day-to-day work decisions will be made autonomously through agentic AI by 2028. Last year, the figure was zero.

Use cases are almost limitless in scope.

Take financial services. An AI agent could be set to work continuously, monitoring transactions for anomalies indicative of fraud. It would leverage adaptive learning to tell the difference between legitimate and criminal activity and take actions to remediate the problem, such as blocking a transaction and notifying the customer. All of this minimizes the delays and customer frustration that come with traditional manual reviews, not to mention the risk of fraudulent transactions sneaking through. From the bank's perspective, it frees staff to work on more satisfying and higher-value tasks, mitigating fraud losses and keeping customers happy.

Companies Are Bullish

There are many more examples like this. In healthcare, agentic AI could automate patient scheduling based on doctor availability, patient history and urgency, sending appointment reminders and even predicting potential cancellations. In local government, it could automate the time-consuming, paperwork-heavy process of granting business or construction permits by analyzing submitted documents and referencing regulatory requirements. The impact on citizens, businesses and under-staffed, under-funded local authorities could be immense.

It's no surprise that organizations are so optimistic about the technology. By 2027, 86% of companies expect to have deployed AI agents operationally, with early GenAI adopters leading the way.

4 Ways to Change ITOps

On a more granular level, agentic AI promises to transform IT operations (ITOps). We've already seen how GenAI has helped by intelligently automating alert correlation, root cause analysis, ticketing and reporting, as well as how it can empower and upskill incident responders as they struggle to deal with manual toil and alert overload. Agentic AI offers more, working through problems even if there are multiple steps and disparate tools involved.

Here are four specific use cases:

1. Site Reliability Engineering (SRE): SRE expertise is in short supply, but it's still much needed as application complexity and customer expectations increase. Agentic AI could help engineers fix problems faster by identifying and classifying operational issues, flagging important historical context and suggesting recommended actions, allowing engineers to focus on innovation.

2. Operations insight: Complexity is the enemy of effective IT operations. ITOps teams sometimes struggle to make sense of their environment given the number of tools they have to manage across distributed, hybrid cloud and on-premises systems. An AI agent could analyze data from across this potentially large ecosystem of tools, uncover trends, surface insights and recommend actions for improved decision making.

3. Scheduling: Today's customers expect seamless digital experiences, and if they don't get them, they are more likely than ever to move to a competitor. That makes it especially critical to ensure seamless responder coverage. Agentic AI can help by taking on a painful manual process, pre-empting scheduling and availability conflicts by dynamically adjusting on-call shifts. Not only will this help drive faster incident resolution, it could also reduce operational costs.

4. Incident response: Incidents are a fact of life in a modern, digital-first organization. But as the business impact of such issues increases, the pressure mounts on ITOps to get ahead of system failures. Agentic AI can reduce response times and human error by stepping in to help and proactively identifying anomalies, taking action to resolve them and continuously learning from past incidents. As with all of the above examples, this is about freeing up human talent to work on higher-value tasks, which also means happier employees.

Some Lessons Learned

As much as organizations are keen to harness the benefits of agentic AI, they're also aware of repeating the mistakes of the past. Many know they didn't train employees enough on GenAI to truly optimize their use of the technology. That's why nearly two-thirds (61%) are planning organization-wide seminars or training initiatives. Others cite lessons learned, such as insufficient planning, not having well-defined ROI expectations and a failure to put in place the right data infrastructure first.

Operational guidelines and guardrails will also be critically important as organizations rush to embrace a technology that operates autonomously.

Agentic AI promises to help ITOps do critical work better, faster and smarter, but success requires careful planning.

Eric Johnson is Chief Information Officer at PagerDuty

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In the world of digital-first business, there is no tolerance for service outages. Businesses know that outages are the quickest way to lose money and customers. For smaller organizations, unplanned downtime could even force the business to close ... A new study from PagerDuty, The State of AI-First Operations, reveals that companies actively incorporating AI into operations now view operational resilience as a growth driver rather than a cost center. But how are they achieving it? ...

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Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

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The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

4 Ways Agentic AI Could Transform IT Operations

Eric Johnson
PagerDuty

The next generation of AI is already here. It may have been mere months since organizations adopted generative AI (GenAI), but now there's a new kid on the block and it promises to offer even greater benefits to businesses and IT operations teams in particular. In fact, research reveals that more than half of companies in the US, UK, Australia and Japan have already adopted agentic AI, with most expecting an ROI of over 100%.

The key to success will be to avoid repeating the adoption mistakes of the past and to start small with manageable projects.

A New Era of Productivity

Agentic AI promises another great leap forward.

The machine-based intelligence is capable of working autonomously to achieve pre-determined goals. In the process, it is capable of adjusting to any unseen bumps in the road through reasoning, iterative planning and adaptive problem-solving. While GenAI focuses on creating content and requires human input in the form of prompts, its agentic cousin acts independently with little or no intervention, making decisions based on data and objectives. Unlike GenAI, it continuously learns and adapts.

It's not difficult to see the huge potential here for enhancing business performance, upskilling workers and relieving them from manual toil. Gartner believes that at least 15% of day-to-day work decisions will be made autonomously through agentic AI by 2028. Last year, the figure was zero.

Use cases are almost limitless in scope.

Take financial services. An AI agent could be set to work continuously, monitoring transactions for anomalies indicative of fraud. It would leverage adaptive learning to tell the difference between legitimate and criminal activity and take actions to remediate the problem, such as blocking a transaction and notifying the customer. All of this minimizes the delays and customer frustration that come with traditional manual reviews, not to mention the risk of fraudulent transactions sneaking through. From the bank's perspective, it frees staff to work on more satisfying and higher-value tasks, mitigating fraud losses and keeping customers happy.

Companies Are Bullish

There are many more examples like this. In healthcare, agentic AI could automate patient scheduling based on doctor availability, patient history and urgency, sending appointment reminders and even predicting potential cancellations. In local government, it could automate the time-consuming, paperwork-heavy process of granting business or construction permits by analyzing submitted documents and referencing regulatory requirements. The impact on citizens, businesses and under-staffed, under-funded local authorities could be immense.

It's no surprise that organizations are so optimistic about the technology. By 2027, 86% of companies expect to have deployed AI agents operationally, with early GenAI adopters leading the way.

4 Ways to Change ITOps

On a more granular level, agentic AI promises to transform IT operations (ITOps). We've already seen how GenAI has helped by intelligently automating alert correlation, root cause analysis, ticketing and reporting, as well as how it can empower and upskill incident responders as they struggle to deal with manual toil and alert overload. Agentic AI offers more, working through problems even if there are multiple steps and disparate tools involved.

Here are four specific use cases:

1. Site Reliability Engineering (SRE): SRE expertise is in short supply, but it's still much needed as application complexity and customer expectations increase. Agentic AI could help engineers fix problems faster by identifying and classifying operational issues, flagging important historical context and suggesting recommended actions, allowing engineers to focus on innovation.

2. Operations insight: Complexity is the enemy of effective IT operations. ITOps teams sometimes struggle to make sense of their environment given the number of tools they have to manage across distributed, hybrid cloud and on-premises systems. An AI agent could analyze data from across this potentially large ecosystem of tools, uncover trends, surface insights and recommend actions for improved decision making.

3. Scheduling: Today's customers expect seamless digital experiences, and if they don't get them, they are more likely than ever to move to a competitor. That makes it especially critical to ensure seamless responder coverage. Agentic AI can help by taking on a painful manual process, pre-empting scheduling and availability conflicts by dynamically adjusting on-call shifts. Not only will this help drive faster incident resolution, it could also reduce operational costs.

4. Incident response: Incidents are a fact of life in a modern, digital-first organization. But as the business impact of such issues increases, the pressure mounts on ITOps to get ahead of system failures. Agentic AI can reduce response times and human error by stepping in to help and proactively identifying anomalies, taking action to resolve them and continuously learning from past incidents. As with all of the above examples, this is about freeing up human talent to work on higher-value tasks, which also means happier employees.

Some Lessons Learned

As much as organizations are keen to harness the benefits of agentic AI, they're also aware of repeating the mistakes of the past. Many know they didn't train employees enough on GenAI to truly optimize their use of the technology. That's why nearly two-thirds (61%) are planning organization-wide seminars or training initiatives. Others cite lessons learned, such as insufficient planning, not having well-defined ROI expectations and a failure to put in place the right data infrastructure first.

Operational guidelines and guardrails will also be critically important as organizations rush to embrace a technology that operates autonomously.

Agentic AI promises to help ITOps do critical work better, faster and smarter, but success requires careful planning.

Eric Johnson is Chief Information Officer at PagerDuty

Hot Topics

The Latest

If AI is the engine of a modern organization, then data engineering is the road system beneath it. You can build the most powerful engine in the world, but without paved roads, traffic signals, and bridges that can support its weight, it will stall. In many enterprises, the engine is ready. The roads are not ...

In the world of digital-first business, there is no tolerance for service outages. Businesses know that outages are the quickest way to lose money and customers. For smaller organizations, unplanned downtime could even force the business to close ... A new study from PagerDuty, The State of AI-First Operations, reveals that companies actively incorporating AI into operations now view operational resilience as a growth driver rather than a cost center. But how are they achieving it? ...

In live financial environments, capital markets software cannot pause for rebuilds. New capabilities are introduced as stacked technology layers to meet evolving demands while systems remain active, data keeps moving, and controls stay intact. AI is no exception, and its opportunities are significant: accelerated decision cycles, compressed manual workflows, and more effective operations across complex environments. The constraint isn't the models themselves, but the architectural environments they enter ...

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...