Buzzwords are like that random cousin at Thanksgiving—they crash the party, dominate the conversation, and leave you wondering if they're here to stay or just another footnote in the family album. Remember when "leakage" had its moment? Or when "disruption" turned every PowerPoint into a countdown to Armageddon?
Fast forward to today, and we're in the thick of another buzzword blitz. The promise of GenAI is everywhere—revolutionizing this, transforming that—but let's be real: FinTech sounds like it's developed a full-blown AI obsession. Every tool, every pitch, every shiny new demo: AI this, AI that. And when you scratch a millimeter deep, it's another chatbot or the same tech we've seen for years, just with 'AI' slapped on the label. Yeah...good times.
But here's the thing—while plenty of these terms are destined to fade like stale memes, Agentic AI is different. It's not another buzzword—it's a real contender. It's not here to shout about disruption or transformation. It’s here to make an impact on our business model and how we build technology. And, in the world of FinTech, it will dominate the conversation.
What Is Agentic AI?
Agentic AI isn't fresh out of the lab. AI agents—systems designed to perceive information and act toward specific goals—have been around for years. They've been answering questions, executing transactions, and even controlling your smart devices. But until now, they've been pretty darn limited, with rigid dynamics that often feel mechanical and uninspired. Think of a Roomba: it has a clear goal—clean floors—but somehow always manages to get stuck draining its battery on a shag rug.
So, what has changed? Well, Generative AI and the rapid maturation of Large Language Models (LLMs) of course. GenAI, with all its wonderful natural language understanding and contextual decision-making, has breathed new life into AI agents. Suddenly, these systems aren't just reactive—they're proactive. They can adapt to real-time changes, make decisions on the fly, and engage in fluid, human-like interactions.
Agentic AI is autonomous, self-directed, and capable of making real decisions based on goals, not rigid rules. It's the kind of tech that doesn't just do what it's told—it evaluates, adapts, and executes.
Picture this: A system that doesn’t need a meeting to figure out the seller guide just changed. It seamlessly taps into its API, updates pricing, adjusts underwriting guidelines, recalculates pull-through projections, and fine-tunes closing processes—all before your team even skims the bulletin. That’s Agentic AI. No handholding, no delays—just results. But what’s fueling this leap forward, and how do we adapt?
A Shift Driven by Industry Leaders
Industry leaders are already laying the groundwork for Agentic AI's future. Satya Nadella, CEO of Microsoft, has consistently championed APIs as the connective tissue between legacy systems and the cutting-edge capabilities of AI agents. Nadella envisions a world where traditional software applications—those static, siloed systems we've been patching together for years—are replaced by dynamic AI agents capable of interacting directly with data.
This shift is not about scrapping legacy systems; it's about reinventing how we use them. APIs act as the bridge, enabling AI agents to tap into these older platforms, extract and process information, and deliver actionable insights—all in real-time. Imagine systems that adapt to new regulations, update borrower profiles, or optimize pricing models without requiring a single JIRA ticket.
It's a profound change in how we think about technology—moving away from rigid interfaces to fluid, goal-driven ecosystems where Agentic AI handles the complexity behind the scenes. As Nadella points out, the result isn't just more efficient systems; it's smarter, more intuitive businesses ready to respond to today's demands and tomorrow's opportunities.
The Future Is Agentic
Buzzwords may come and go, but Agentic AI isn't a fleeting trend—it's the next evolution in how we think about technology and its role in mortgage banking. This isn't about replacing people or even systems; it's about rethinking how we connect the dots. With the power of APIs, Agentic AI bridges the gap between the legacy systems we rely on and the dynamic, goal-driven ecosystems we need to thrive.
But as AI becomes more integrated into our processes, trust becomes non-negotiable. That’s where Explainable AI (XAI) comes in. My upcoming white paper on how the lack of transparency in AI creates challenges in trust, compliance, and fairness. Explainable AI (XAI) addresses these issues by making AI decisions understandable and auditable, offering a path for lenders to enhance compliance, reduce bias, and foster trust in a more equitable industry. It’s the key to building confidence in systems that think for themselves.
Industry leaders like Microsoft's Satya Nadella are already pointing the way, but the real question is: who's ready to act? Agentic AI isn't just going to change the game—it's going to rewrite the rules. The victors will be those willing to lead the market—not arguing over user stories to populate the next sprint.
So, the only question is: Are you on board with shaping the future of this industry?
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Ruth Lee, CMB, is a Certified Mortgage Banker and a recognized thought leader in the mortgage industry. As the founder of Big Think LLC, she consults with lenders and financial institutions, helping them navigate the ever-changing landscape of compliance, technology, and innovation. When she's not dissecting the latest buzzwords or writing about FinTech, Ruth can be found exploring Colorado's mountains or enjoying a coffee strong enough to fuel a mortgage pipeline.