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Agentic AI, Partnerships, & APIs: Boom or Bust?

6/2/2025

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Are you leveraging APIs to 
  • Provide client services?
  • Build partner ecosystems?
  • Power AI agents?
If not, it's time to start.

The era of agentic AI is here. As these autonomous agents rely on APIs, we are seeing a surge in API usage and a new wave of API-driven partner ecosystems.    

This means now's your chance to deliver more value to your customers and grow API revenue-but it also means your APIs may quickly become obsolete. 
​

Here's how to sell API services in the agentic AI era—​and how to prepare for what's next. 

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1000x API Growth

As mentioned in my recent blog post on agentic AI, client agents act on behalf of a human user. They contain API calls to other services such as "make a payment" or "get invoice status." 

(Increasingly these API services are contained inside service agents powered by MCP servers. Anthropic's Model Context Protocol (MCP) specifies the structure for how agents call one another to request services. When agents are built using an agentic framework, such as LangGraph or CrewAI; the framework enables agents to call these MCP servers.)


The more agents we build, the more API services they'll consume—​whether directly or  through MCP servers. This is why the API services provided by software vendors are even more important in the era of agentic AI.

As Aaron Levie CEO of Box said, "the de facto model of software integrations in AI is one primary AI Agent interacting with the APIs of another system. This is a great model, and we will see 1,000X growth of API usage like this in the future."  ​

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Selling APIs to Agents

As we accelerate into the agentic AI era, API service vendors (which all software companies should be) need to 
craft strategies for API products to be more easily utilized by Large Language Models (LLMs) and agents. Like many other companies, Stripe has implemented an “Agent SDK” which natively supports agentic frameworks.

​These SDKs often expose higher-level capabilities more easily used by an agent-for example, a single function like "clients_last_actions()" instead of multiple API calls. They could also provide natural language "context" which is useful for an LLM; for example "this function provides the most recent client actions such as support calls, product inquiries, or payments."

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Using Agents to Sell APIs

Companies can also use LLMs to make their APIs easier for developers to use  - whether they are building agents or traditional applications. As is becoming increasingly true for support across a variety of industries, software companies who are providing APIs to their partners can create an AI support agent. LLMs power these agents which answer developer questions and provide real-time support.   Companies such as VoPay have created developer support agents by pre-populating an instance of ChatGPT with FAQs, code samples, and other documentation.

Of course, it doesn't stop there. Software companies can use LLMs to help generate code snippets or even most of a working application tailored to the developer's needs. Stripe has an AI Dev assistant and Google Cloud has Gemini Code Assist which integrates into IDEs and provides not only chat-based assistance for developers using their APIs but also contextual code completion and even code generation.​

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Partner Ecosystems: More Revenue, More Client Offerings

If you are selling API-based services you are providing them to developers or really other companies which means you are building your partner application ecosystem.   Not only does this generate more revenue, but it also expands the offerings available to your clients.  Look at all the applications available on Salesforce's AppExchange or SAP Concur's App Center (and I happened to have worked on both of these).  

With the boom in agentic AI and its need for APIs, the potential growth for your partner program is accelerating.  As I have written about in the past, you need to consider "How to Become a Platform Company", the "what" and the "why" of becoming a platform company, and how platform and partnership programs grow your company.  Further, as I wrote about in "SaaS Partnership"; software companies need to distinguish between different type of partnerships and partnership business models; and what organizations and functions are required to grow partner revenue. 

However in order to survive and thrive, you not only must consider how you are selling your APIs to partners; but also what type of APIs or really services you are selling. ​Otherwise you won't fulfill the potential (and see the direct and indirect revenue growth) of your partner ecosystem.



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UI-Driven Agents 
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Today agents will be easier to build and more reliable if they engage with services that provide a explicit contract about how they behave, an API.  However some agents are being designed to watch users work and mimic their actions. This is a very powerful paradigm as it will augment human work by doing many of the repetitive tasks we do daily. Vendors providing "agentic robotic process automation (RPA)" or "LLM-enhanced process agents" include RPA companies such as UiPath and Automation Anywhere. 

These agents aren't using APIs because they are acting like a human user and interacting with a software company's traditional application graphical user interfaces (UI).  UIs change and their usage isn't always clear (even to us humans), but as agents evolve they will be more capable of navigating a traditional software UI. 

Since these type of agents don't use APIs, so this is one way that agents may render your APIs obsolete. 

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From API Calls to Conversations

However the most effective and impactful agents will continue to use APIs. Although as vendors' services start becoming more agentic; traditional JSON formatted APIs may give way to more conversational or agent-native interfaces. 

Also, as mentioned in my earlier blog, the revolution will take another leap when Agent-to-Agent communication becomes more prevalent.  This will fuel a further shift towards conversational interfaces. 

Google's new Agent2Agent protocol prescribes agent-to-agent communication (A2A) to use JSON-formatted messages.  These messages can trigger underlying services that are either traditional JSON-based APIs or natural language-based interfaces. 


As the providers and the consumers of APIs become increasingly agentic, these powerful programs will increasingly be using their natural language interfaces for their interactions. This is especially true with A2A communication which enables more sophisticated and powerful capabilities.

=> Will agents and agent-to-agent communication make today's application APIs obsolete?

=> How are you evolving your API services for the agentic AI era? 


(Views are my own and do not represent those of any current or former employer.)​

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You Think AI Agents Are Disruptive; Wait until They Talk to Each Other

5/10/2025

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If you sell—or rely on—software, you need to know how agentic AI is already reshaping the design and business of software. And this is only the beginning; when agents start talking to each other, both your company and your career will need to evolve to stay relevant.​

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AGENTIC AI WILL CHANGE THE DESIGN AND BUSINESS OF SOFTWARE


AI-based agents are autonomous systems capable of dynamically adapting to requests by using large language models (LLMs). They can carry out complex, multi-step processes with little or no human intervention.

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💸 Pricing Shift: Per-user -> Per-transaction -> Per-Outcome
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More enterprise software applications will shift from a per-user to a per-transaction pricing model. Pricing will be based on transactions or tasks completed such as APIs called, expense reports processed, or marketing emails sent because one agent can do the work of many human users. With the advent of agents, the business of software may change even further as companies "hire agents" much like they hire human workers to generate specific business value. Agents could deliver outcomes such as leads from marketing emails or savings from automating customer onboarding. (For more see my previous blog on SaaS pricing.)

Previously a software vendor was limited by the number of seats or end users it could enable. However, as Aaron Levie CEO of Box said, “AI Agents provide another vector of growth for software by enabling companies to essentially buy 'work' from their software vendor. And because this work is elastic, enterprises can throw AI Agents at both large and small problems in the business alike — like, reviewing a batch of contracts, qualifying a lead, transcribing a doctor visit, writing lines of code."  Or as Yoko Li from A16Z succinctly said "The market is growing so much bigger because there are use cases we haven't even thought about yet." 


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🛠️ Design Shift: Graphical -> Conversational UX

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Users won't click ten screens; they'll just say,  "pay all invoices that are due tomorrow", with a possible caveat "but confirm with me first." These type of agents, which act on behalf of a human user, are called client agents. Designers and developers will shift focus from workflow optimization—which agents will handle—to defining agent prompts, rules, and data structures that encapsulate industry knowledge and deliver distinct value.

In many applications the UX will be a mix of traditional graphical UI and conversational agents. This was my experience when building a simple agentic AI app using Replit.

More interesting, however, is when an agent is designed to use multiple systems - eliminating the need for humans to navigate between separate applications. For example a user can request an agent to "book a flight to get me to the conference I am going to next week." The agent would interact with a calendar app, a travel booking site, and a payment system. If this type of use case requires calling and coordinating responses between multiple agents, such as date and time availability,  this agent would be considered an orchestration agent.
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🤝 AN EVEN BIGGER SHIFT: AGENT-TO-AGENT COMMUNICATION 

Today, agents respond to human prompts. Tomorrow, the “user” could be another agent. 
  The Wall Street Journal (Steve Rosenbush 3May2025) says that companies should start planning for this next stage of AI, the orchestration of multiple agents across their business. It reported that Accenture has more than 50 multiagent systems today for a range of industries and markets. Aaron Levie says agent-to-agent communication will be the biggest unlock of AI. 
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Orchestration agents typically operate within a predefined workflow involving various other agents.  What if agent interactions are not constrained by a specific workflow? 
Agent-to-agent communication will enable software to automate and solve problems in novel ways that we have yet to consider.

When the World Wide Web first debuted, it was static or read-only. Most people thought what we now call Web 1.0 could possibly replace magazines or libraries. At the time few people considered its evolution to Web 2.0 or the read-write web which delivers dynamic content, social media, and business applications. Even fewer could have imagined a semantic and de-centralized Web 3.0.

As we evolve from predictive AI to also using generative AI, we are still optimizing the ways we solve problems. This is even more true with agentic AI especially as it starts including agent-to-agent communication. 
 
=>What are new approaches we aren't yet considering with this powerful new paradigm?


What business problems may be solved more effectively but in a manner unfamiliar to humans when we start building agents which aren't design to act on behalf of a human but to communicate and coordinate with other agents?  Real-time logistics involving hundreds of suppliers and dozens of currencies during a global crisis? Corporate strategies? Peace treaties?  Building more powerful agents? 

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Agent Taxonomy

Service agents provide specific capabilities from a system to another agent. It might represent an API call to retrieve all sales opportunities for the month of May in a specific region. Client agents call service agents and provide additional capabilities such as using an LLM to understand a request and provide analysis: "give me all sales opportunities for the month which are similar to other opportunities which ultimately turned into sales". An orchestration can go further, combining multiple sources and providing richer capabilities "return sales opportunities which will likely turn into sales, and (looking at the company's ERP system) ultimately a successful, profitable customer." An earlier example - "Pay all bills due tomorrow, but confirm with me first" - becomes even more useful with a smarter caveat "but confirm with me first if after looking at my bank account and calculating my projected cashflow, you think a payment might cause future cashflow issues." 
There are also monitoring agents which are built to observe and audit, especially important in regulated environments. 
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A2A Impact
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A2A communication allows for even more sophisticated orchestration agents as it enables back and forth negotiation and evolving plans between client or orchestration agents. For example two systems defining what a "successful" customer is; or better, a buying agent and a selling agent negotiating a sale and making trade-offs based on parameters established by human users.


Recently I heard Miku Jha talk about Google's new Agent2Agent protocol. While there is some discussion about this, Google's A2A protocol complements Anthropic's MCP protocol which is the standard to connect LLMs with data, resources, and tools. A2A focuses on a different problem, agents communicating with other agents but not as tools or end points. It enables back and forth negotiation between different autonomous identities. To paraphrase Ali Arsanjani's Medium Post, Anthropic’s MCP tells an agent what another agent can do; Google’s A2A standardizes how they negotiate to do it.

Much like APIs advertise their capabilities with MCP; agents advertise their capabilities with a JSON format "Agent Card". The communication between agents is oriented towards task completion; and agents can send each other messages around context, replies, artifacts or user instructions.


At CES 2025, NVIDIA CEO Jensen Huang said, "In the future, these AI agents are essentially a digital workforce that will be working alongside your employees." 

=> What type of business problems may be solved more effectively by agents than humans when we start building agents designed to talk with each other?   

=> What does that mean for your company?  Your career?​ 

=>Tell me what you think below.  Let’s talk



(Views are my own and do not represent those of any current or former employer.)
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