Expanding AI Boundaries
A recent article from the World Economic Forum, “How agentic, physical and sovereign AI are rewriting the rules of enterprise innovation,” strives to look at these various AI operating models and how enterprise innovation is supporting these efforts. As the article notes, it’s not just about optimizing AI but rather ways to truly transform the business using AI.
“Amid this reality, enterprise innovation is gaining momentum in three areas: agentic, physical and sovereign AI. Each unlocks new opportunities and demands new governance approaches and architectural choices,” notes World Economic Forum. Here, we briefly look at each AI type and how it may impact enterprise innovation.
Agentic AI: Unlocking Rapid Growth
According to the World Economic Forum report, per Deloitte research, the agentic AI market is poised to reach $45 billion by 2030, up from $8.5 billion in 2026, as organizations look to integrate agentic systems that can plan, reason and execute multistep tasks across business functions.
Sectors that could benefit from agentic AI efficiencies include customer support, finance, aviation and manufacturing, while WEF notes strong potential for supply chain coordination, research and development workflows, knowledge management and cybersecurity—with the right governance models in place that emphasize risk management, accountability and transparency and to enforce ethical guidelines.
Physical AI: Transforming Business
WEF notes that, “Unlike software-based agentic AI, physical AI brings autonomy into the real world through sensors, controls and robotics, and is rapidly becoming integral to operations worldwide.”
Over half (58%) of respondents to the forum’s “State of AI in the Enterprise” survey said their companies are already using physical AI to some extent and adoption is projected to hit 80% within two years. This includes manufacturing, logistics and defense, with such sectors as robotics, autonomous vehicles and drones benefiting. Deploying physical AI is a space where investment, innovation, safety and maintenance are ongoing to transform the enterprise.
Sovereign AI: Across Borders
Sovereign AI is the ability for a nation or organization to control its own AI development and operations, ensuring independence from foreign providers. This varies widely by region. “Governments are accelerating investments in digital infrastructure – from AI hardware and software to advanced chips and satellite systems – to help reduce dependence on foreign vendors for important AI capabilities,” observes World Economic Forum.
WEF further notes that some governments are investing in or providing incentives for sovereign AI, while others are imposing regulatory requirements on locally owned and operated AI infrastructure: “This heightened focus is prompting enterprises to rethink where AI is developed, how data is stored and employed, which chips are used, and who controls the infrastructure.”
With almost $100 billion expected to be invested in sovereign AI by 2026, WEF also adds that sovereign AI has become a strategic challenge for multinational organizations, which must navigate complex requirements that vary by country and create customized solutions for different markets.
Tapping into AI’s Full Potential
According to Deloitte’s 2026 report, “The State of AI in the Enterprise,” organizations remain on the “untapped edge” of adoption and impact. There may still be an AI preparedness and fluency gap, yet that gap is closing. The survey captured insights from more than 3,200 business and IT leaders around the world with direct involvement in their companies’ AI initiatives.
This is not to say that “humans in the loop” concepts are disappearing. On the contrary, Deloitte observes that, “Business leaders today face an unprecedented challenge: moving beyond pilots to truly integrating AI into the heart of their organizations. It requires a deliberate shift in which people set a vision and make responsible choices, and AI provides the insights, speed, and scale to deliver against that ambition. That means redesigning core processes and operating models with AI, ensuring that human strengths—such as judgment, creativity, empathy, and relationship-building—are elevated, not automated.”
The scale of the acceleration of AI is just beginning. But true transformation of business lies with enterprise innovation, not just incremental steps per se, but in truly building a foundation.
“AI’s transformational potential is real, but capturing it requires far more than just technology investments,” advises Deloitte. “Organizations should treat AI as foundational. The most successful won’t be those with the most AI projects or the biggest budgets, but those who build AI into the foundation of how they operate, compete, and grow.”
Other key takeaways from Deloitte’s report include:
- Close the gap between access and activation.
- Unlock human advantage by redesigning work around AI.
- Build governance before you scale and make it everyone’s role.
- Address sovereign AI requirements with focus and discipline.
- Build a “living” technology and data infrastructure for tomorrow’s AI.
- Pursue strategic reinvention, not incremental efficiency.
Video: “Welcome to the 2025 Deloitte Executive AI Forum,” courtesy of Deloitte U.S.
