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The Strategy Digest / California Management Review

Realizing Agentic AI Value:A Systems Approach to Autonomy and Risk

California Management Review · Academic Paper · 18 Sept 2026 · Practitioner insight · Editor's rating: ★ Noted

Executives can capture value from agentic AI using an approach matrix of autonomy and mindset and a 5Es model while watching for opacity, misalignment, feedback loops, sovereignty and cost risks.

Summary

The article argues that agentic AI, meaning autonomous systems that set subgoals and act on them, requires a systems-thinking mindset rather than tool-by-tool optimisation. It proposes an approach matrix crossing autonomy level with organisational mindset, and advises most firms to move first to a cautious, systems-aware stage before pursuing high autonomy. A five-step cycle (Emergence, Establish, Explore, Evaluate, Enhance) starts from five risks: opacity, misalignment, feedback loops, vendor dependence and rapidly scaling token costs. The recommended controls are control layers around agents, audit trails, human approval for key actions, simulation and red-teaming before deployment, and retaining experienced staff. The evidence is illustrative, drawing on a few company examples and cited studies rather than an original dataset.

Editor's opinion

Agentic AI is a governance and cost problem before it is a value problem. The practical stance is to grant autonomy only as fast as the organisation can map, audit and control the system, and to watch two risks executives tend to miss: dependence on the model provider, and token costs that scale with autonomy.

Key concepts

agentic AI · autonomy · systems thinking · AI risk

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