About Justin Lerma: AI educator and thought leader focused on the intersection of technology and human performance. Views are my own.

Disclaimer: The views expressed in this publication are personal opinions and do not represent the positions of any employer or affiliate.

Agentic AI: What Leaders Must Know Before It’s Turned On

Agentic AI: What Leaders Must Know Before It’s Turned On
This is a tectonic organizational shift. Tread wisely.

Introduction

Agentic AI isn’t just another generative model—it’s a system that can act, decide, and operate within your workflows. The question is no longer whether you can use AI, but where, how, and why you let it do so. This post maps the real decision environment your people work in, then lays out a step-by-step plan to pilot and scale agentic systems responsibly—with ethical guardrails from day one.


The Problem: Decision Overload and Hidden Friction

Every employee makes dozens (or hundreds) of small decisions each day, mostly unconsciously. As leaders rise, decisions become more deliberate but still rely on heuristics and accumulated judgment.

Before you “turn on” agentic AI, map how many decisions exist in each workflow, what knowledge and heuristics they depend on, and where judgment is essential. This exercise exposes data inaccessibility, silos, redundant approval layers, and bottlenecks waiting on leadership or SME input—often places where rules can be codified and information put into a searchable system. Clarity comes first: you can’t control what you haven’t surfaced.


Where AI Can vs. Where It Should Operate

Start with the boundary question: what can AI do, and what is it wise to let it do?

  • Low-risk, rule-based tasks are the on-ramp (e.g., answering “How many PTO hours do I have?” in HR).
  • High-impact, judgment-heavy decisions remain human (e.g., “Should we expand this product into a new region?”).
  • In between, use confidence thresholds and escalation logic: when certainty or stakes cross a threshold, hand off to a person.

Agents can read across your documentation instantly in ways most humans can’t. That advantage also raises risk if sources are wrong or incomplete, so test explicitly for data quality and coverage. Treat model updates like any other change: version them, evaluate, and be able to roll back or forward quickly for compliance or security reasons. Decentralize where possible—push authority closer to the edge where context lives—but only after training and clear rules of engagement.


A Practical Rollout Guide for Executive Leaders

1) Educate and Onboard

Treat agentic AI as a major transformation, not a side project. Launch a formal agentic onboarding program for everyone:

  • What agentic AI is (and isn’t), how autonomy changes responsibility.
  • Failure modes, escalation paths, confidence/threshold concepts.
  • Data access, documentation hygiene, and change control.
  • Operational ethics and incident response basics.

Training is cultural as much as technical.

2) Pick Low-Risk Pilots

Start with small, well-understood workflows (internal routing, document triage, FAQ-style HR queries). Keep a human in the loop, constrain blast radius, and use synthetic data where appropriate. Define explicit escalation and rollback paths. Run “shadow mode” first (agent proposes, humans decide) before the agent acts.

3) Define Success and Guardrails

Set SMART metrics and baselines. Examples:

  • Accuracy/error rate and coverage.
  • Escalation frequency and resolution time.
  • Time saved per case; employee/customer satisfaction.
  • Privacy/compliance checks passed.

Establish change control: version prompts/policies/datasets/agents; log decisions; require approvals for model or data updates; rehearse rollback. Create an incident playbook (detect → contain → fix → learn).

4) Empower Edge Decision-Makers

Name and train agentic operators who own narrow decision domains. They manage exceptions, watch dashboards, document edge cases, and feed learnings upstream. This reduces unnecessary approvals while preserving accountability. Provide runbooks with thresholds, examples, and “always escalate” rules.

5) Build Ongoing Ethical Awareness (Deployment and Operations)

Make ethics a continuous practice, not a checkbox. Use daily checkpoints:

  • Fairness & bias: Are outcomes drifting or disadvantaging groups?
  • Transparency: Do users know when AI was involved and why it acted?
  • Privacy: Is sensitive data minimized, access-controlled, and retained appropriately?
  • Accountability: Who owns final decisions and appeals?
  • Monitoring: Are we detecting model/data drift and unintended effects?

Operationalize ethics: periodic audits; shadow-mode comparisons; appeal mechanisms; red-team tests; documented waivers for exceptions; clear “kill switch” conditions.

6) Iterate, Scale, and Adjust

Scale gradually using rings (pilot → team → function → org). Use STOP/GO criteria tied to metrics and risk tiers. Update documentation and training with each expansion. Expect to pause, reverse, or retrain as data, models, or regulations change. The goal isn’t speed—it’s sustainable, reliable capability.


Final Thought: Responsibility Amplified

Agentic AI magnifies impact—good and bad. Done well, it lifts the mundane, elevates human judgment, and focuses people on work that requires creativity and empathy. Done carelessly, it scales chaos. Lead with clarity, decentralize with discipline, and pair autonomy with accountability. The more capable your AI becomes, the more character your leadership must show.

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