Agentic Commerce: The Paradigm Shift from Human-Mediated to Autonomous AI-Driven Transactions in Digital Payment Systems

Abstract

Agentic commerce represents a monumental change from human-to-human digital commerce in that the buying decisions that humans used to make are being supplanted in the future with automated and self-aware AI-driven commerce. The advent of agents based on large language models can now, to varying degrees, engage with users through relatively natural conversation to learn what they require, search across multiple platforms, negotiate prices, and autonomously handle the entire transaction process without human involvement. As a result, a completely new payment construct, authentication method, and security model are needed. Traditional banks and major technology companies, payment processors, card networks, and AI research organizations have begun working together to build the technical architecture that will allow agents to autonomously engage in commercial transactions. Numerous issues need to be resolved, including the appropriate way to verify AI agents acting on behalf of users, formalizing dispute resolution procedures, enforcing consumer protections, and addressing ethical concerns with machines making judgments about purchases on behalf of humans. The union of AI and fintech is an exciting space that will likely increase convenience and productivity, while demanding governments adapt their regulatory frameworks and the commercial ecosystem create trust that also fits the compliance model of the regulatory body in place.