The Agentic Revolution: HIRE Agents NOT Humans!

I know this blog is late, but don’t worry, it’s not another ‘AI is coming for your job’ post. You’ve probably read enough of those already!

I believe AI Agents and Multi-Agentic systems are about to introduce something far bigger, something that could redefine the very way we think about the factors of production. And this shift isn’t decades away. Given the pace of progress over the past few years, I’d argue it’s coming within the next 1–2 years.

If you’re still a little fuzzy on what AI agents or multi-agent frameworks actually mean, I’d suggest checking out my earlier articles (👉 Blog 1, 👉 Blog 2). They’ll give you a fair idea before reading this.

The Classic Factors of Production

When we talk about the factors of production, we usually refer to the three traditional pillars — Land, Labor, and Capital. But it is important to understand that these pillars did not simply exist from the beginning; they came into existence and were redefined by turning points in history.

Let’s take a trip down the memory lane!

• The Industrial Revolution gave us Capital — machinery and factories that amplified human productivity at a scale never seen before.

• The Software/.com Revolution reshaped Labor itself, splitting it into white-collar (skilled) and blue-collar (unskilled) categories, fundamentally reorganizing the way human work was defined.

The Agentic Revolution

If the Industrial Revolution gave us Capital, and the Software Revolution redefined Labor, then I believe that the Agentic Revolution stands on the same scale by introducing a fourth factor of production.

I call this Agentic Labor - a factor of production that will sit alongside Human Labor, Capital and Land.

In the future, we will essentially employ AI agents as part of the organization instead of hiring human employees.

Now, many of you would ask: “Aren’t multi-agent systems just another form of capital?” Valid question but the answer is NO. They are qualitatively different. Multi-Agentic Systems combine the decision-making ability we associate with human labor, with the replicability and scalability we associate with capital. In addition to this, they can also be easily and quickly replaced or substituted by better-performing Agents available in the market. This unique combination is what sets them apart and understanding this is the key to understanding why multi-agentic systems are going to change the way the world operates.

As we look ahead, I am convinced that it is inevitable that future organizational charts will evolve to include AI agents as integral members alongside human employees. These agents will not merely be tools; they will hold titles, have defined job descriptions, and be subject to performance metrics just like their human counterparts. However, the key difference lies in their operational capabilities. Unlike human workers, AI agents will not require rest or downtime, allowing them to maintain productivity levels around the clock. They can scale instantly to meet demand, adapting to fluctuations in workload without the constraints that typically affect human labor. Moreover, the cost of maintaining these agents will be a fraction of what it costs to sustain a human workforce, making them an economically attractive option for businesses seeking efficiency and innovation.

This Flowchart highlights how the Industrial Revolution introduced capital, the Software Revolution redefined labor, and the Agentic Revolution introduces agentic labor as the fourth factor of production.

What HR Should Expect in the Age of Agentic Labor?

When we talk about the rise of AI or Agentic systems, it is natural to assume that departments like IT, engineering, or operations will be the ones forced to evolve the fastest. After all, they’re closest to the technology, right? True, but I believe it is HR that faces the biggest change.

So, if you are in HR, I believe your role is going to look very different in the coming years. Think about it: with the rise of Agentic Labor, you won’t just be managing humans anymore. The workforce will no longer consist only of people, but also of agents functioning as employees.

These digital employees will require careful evaluation right from identifying the right Agentic systems that fit the organization’s needs, to running cost–benefit analyses that compare them with human roles. HR will need to think less about “hiring” in the traditional sense and more about selecting and managing these digital employees.

Being in HR, here are a few things I recommend you start focusing on, because this is exactly what will be expected of you in the coming years:

1. Learning how to evaluate agents -- Start with the basics. Learn about Multi-Agentic Systems maybe not in technical depth, but at least get an idea of how they function. You are going to have to figure out which ones actually fit your organization’s needs. Think of this step as Talent Acquisition, but this time for agents, not humans.

2. Running cost–benefit comparisons -- Just like you compare salaries and benefits when hiring people, you’ll now need to evaluate the cost of bringing in an agent against its human counterpart. You will have to figure out if the agent can deliver greater value, efficiency, or long-term ROI compared to a person in the same role.

3. Building new ways to measure performance -- You won’t be measuring engagement or cultural fit for agents. Instead, you’ll evaluate them on accuracy, adaptability, speed, and how effectively they integrate with human teams.

4. Designing collaboration between humans and agents -- One of your key roles will be to figure out how hybrid teams work best. Where does human judgment matter most? Where can agents replace them?

If you think about it, most of these tasks are analogous to what you already do for humans, it’s just that now they have to be expanded to incorporate the Agentic Revolution.

Conclusion/Take-Away

If the Industrial Revolution gave us Capital, and the Software Revolution reorganized Human Labor, then the Agentic Revolution is giving us Agentic Labor scalable, tireless, autonomous workers.

What amuses me is how quickly this will normalize. Within just a few years, org charts may casually list AI Agents next to human employees. Agentic Labor won’t be a futuristic concept it will be standard.

So tomorrow, when we speak of a firm’s “labor force,” we might have to specify: Human Labor or Agentic Labor and that is something to think about

The question is: Are we ready to manage a workforce where not all employees are human? Whether we are or not, that’s the future.

#HIREAGENTSNOTHUMANS