Point of View: The Shift from Smart to Agentic - Defining the Next Era of Products with Agency
Every market shift redefines what “good enough” means for products.
Machines once earned their keep by simply functioning. Then came the era of connectivity – products that could communicate. Smart followed next – devices that could sense and interpret their surroundings.
But we’ve reached an inflection point. Intelligence alone no longer differentiates. Every product claims to be smart. Every competitor promises insights.
What do customers actually pay premium for? Products that don’t wait to be told what to do. Products that spot problems before they happen, explain their reasoning, and get better over time without constant handholding.
The next decade won’t belong to the smartest products. It will belong to the most autonomous, trustworthy ones – products with agency.
That’s the foundation MosChip’s AgenticSky is built on: helping OEMs embed autonomy, proactivity, goal-directedness, adaptability, continuous learning, and trust directly into their products.
Q: AI in products is everywhere. What's actually changing for OEMs?
We’ve gotten really good at “smart” over the last decade. Products can sense things, connect to networks, and respond to inputs – but so can everyone else’s. Connectivity and intelligence have become commodities.
But customers want more now. They want machines that act with purpose, explain their reasoning, prevent problems before they happen, and actually adapt to how they’re being used.
Think of it this way: a smart product tells you what’s happening. An agentic product understands why it’s happening and knows what to do about it.
That shift – from knowing to acting with intent – is everything.
Q: "Agentic" sounds like a buzzword. What does it actually look like?
It’s more concrete than it sounds. Agentic products operate through a cycle we call Perceive → Interpret → Decide → Engage (P→I→D→E):
Now imagine an automotive assembly line running an Agentic AI solution on the camera. It’s watching a robotic station tightening bolts on an EV chassis.
It doesn’t just flag “defect detected.”
It says:
“The torque pattern on Bolt #12 is drifting by 5%. Similar drifts occurred in the last three units. Recommend recalibration at Station 4 – estimated yield impact: 1.8%.”
That’s the difference. A traditional smart system reports data. An agentic system interprets, reasons, and recommends – it acts like a vigilant co-worker who not only spots the issue but tells you why it happened and what to do about it. That’s not just automation – that’s agentic intelligence in action.
Q: Haven't we had AI on devices for years?
We have, but it’s been reactive, not agentic. Most embedded AI today recognizes patterns and responds accordingly. Agentic systems reason through situations, make decisions, and explain themselves. They combine autonomy with accountability – every action can be traced, governed, and understood. It’s the difference between a device that follows rules and one that understands objectives.
Q: How is Agentic AI different from Generative AI in products?
This is probably the most common question we get, and it’s crucial to understand the distinction.
Generative AI creates content. It’s reactive – you give it a prompt, it gives you an output. Think of LLMs that write text, generate images, or draft code. Each interaction stands alone, and it needs human direction at every step. It’s powerful for discrete tasks, but it doesn’t maintain context across sessions or pursue goals independently.
Agentic approaches achieve objectives. They’re proactive – you define a goal, and the system figures out how to get there through multiple steps, often without constant guidance. It maintains memory across interactions, makes decisions, adjusts strategies based on results, and keeps working toward an outcome over time.
Here’s the practical difference:
Generative AI in a factory: You ask it to analyze a production image. It responds: “Defect detected at weld point.”
Agentic approach in the same factory: The system continuously monitors production, detects the defect, correlates it with maintenance logs and supplier data, predicts downstream impact on yield, schedules a maintenance window, notifies relevant teams, and tracks resolution – all without being prompted at each step.
Generative AI is a brilliant assistant that waits for instructions. Agentic systems are trusted colleagues that take ownership of outcomes.
For product teams, this matters because Generative AI augments human workflows – making people faster and more creative. Agentic systems automate entire processes – enabling products to operate with real autonomy and accountability. Both have their place, but only agentic capabilities deliver the goal-directed, independent behavior that defines next-generation industrial products.
Q: What are these Agentic Traits, and why do they matter?
Every next-generation product needs to develop six core capabilities:
Autonomy – Operating independently within safe boundaries.
Example: An HVAC controller that optimizes temperature before it drifts, not after.
Proactivity – Anticipating problems instead of reacting to failures.
Example: A wearable that detects fatigue patterns before a worker even feels exhausted.
Goal-Directedness – Acting with clear purposes, not just generic optimization.
Example: A robotic arm balancing speed, safety, and energy efficiency based on explicit priorities.
Adaptability – Reconfiguring behavior across different contexts.
Example: A camera that seamlessly switches between factory inspection and retail shelf analysis.
Continuous Learning – Improving safely from user feedback and real-world data.
Example: A predictive maintenance system that gets smarter with every production cycle.
Trust – Transparent, explainable behavior that builds user confidence.
Example: A medical device that justifies every decision and logs interventions for audit trails.
These aren’t just technical features – they’re strategic advantages that will separate leaders from followers in the coming decade.
Q: How does AgenticSky help OEMs make this leap?
AgenticSky was designed specifically for this transition. It’s a foundation for systematically engineering agentic traits into what you build.
It works through two complementary layers:
1. The AgenticSky Fabric A reconfigurable intelligence backbone that embeds the P→I→D→E structure across any product. It governs how signals are perceived, interpreted, decided upon, and acted on – with explainability and safety policies built in from day one. It turns autonomy from a one-off feature into a repeatable design pattern.
2. The AgenticSky Cores Pre-validated, reusable accelerators – each representing a human-like role your product can play.
VisionCore – The Eyes of Products Vigilant inspection and anomaly explanation
In manufacturing: VisionCore spots anomalies and describes root causes with visual evidence.
HMICore – The Interface of Machines Trusted digital concierge for Kiosks and in-product guidance
In kiosks or vehicles: HMICore provides contextual guidance, explanations, reassurance.
ControllerCore – The Brain of Devices Self-learning setup, calibration, and optimization
In industrial systems: ControllerCore calibrates equipment, teaches operators, prevents costly errors.
WearableCore – The Companion of People Continuous wellness, safety, and lifestyle coaching
In healthcare or workplace safety: WearableCore tracks stress, posture, vitals – acting as an always-present guardian.
Together, these Cores let OEMs instantiate autonomy, trust, and learning without building everything from scratch.
Q: Why not just stick with "smart" products?
Because smart stops at observation. Agentic begins with understanding. Smart systems tell you what happened. Agentic ones know why it happened and what should happen next.
Smart devices are like interns – fast, capable, but they need supervision. Agentic devices are like trusted colleagues – reliable, adaptive, and accountable.
As markets mature, the products that understand context and act responsibly will own customer trust. And the OEMs who build them will own the future.
Q: So this isn't just about AI - it's a new way to design products?
Exactly!
Agentic thinking changes how products are imagined, built, and maintained. It shifts the conversation from engineering features to engineering relationships.
It means designing for:
That’s the leadership call for every OEM today – building machines that aren’t just intelligent, but trustworthy collaborators.
Q: What's your advice for OEM leaders starting this journey?
Change the questions you ask your engineering teams.
Instead of: “Can it be smarter?”
Ask:
“Can it act safely on its own?”
“Can it explain itself to users?”
“Can it adapt across different conditions?”
“Can it learn responsibly over time?”
When you start thinking this way, you’re already designing for the Agentic Era. And when you’re ready to scale, AgenticSky gives you the Fabric and Cores to make it real – faster and safer.
Q: One final line to capture it all?
The last decade was about products that think. The next belongs to products that act, adapt, and earn trust.
AgenticSky is how MosChip helps OEMs build them – responsibly, repeatably, and at scale.
To learn more or get a AgenticSky demo for your products, schedule a discussion.
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