Meta, Amazon, Booking Best Positioned For Agentic AI Opportunity, Says Analyst
Bank of America Securities analyst Justin Post highlighted Agentic AI as a top theme for 2025 in a recent research note. He pointed out significant first-half launches like OpenAI's Operator and Google's Mariner as crucial steps in the evolution of Agentic AI. These AI systems are capable of making autonomous decisions and acting independently from direct human control. Post emphasized the importance of adapting strategies for transactional-based Internet companies to cater to changing consumer behavior driven by Agentic AI. He also noted the fierce competition among tech giants like Google, Meta Platforms, and OpenAI to be the leading "Agent" in helping consumers navigate their lives.
Bank of America Securities analyst Justin Post highlighted Agentic AI as one of his top themes for 2025 in a research note issued on Wednesday. This prediction comes on the heels of significant first-half launches, specifically OpenAI’s Operator and Alphabet Inc. GOOGL GOOG Google’s Mariner, which Post considers essential steps in the evolving Agentic AI timeline.
Agentic AI Overview
Agentic AI refers to AI systems capable of autonomous decision-making and action, operating with a degree of independence from direct human control. The analyst noted Agentic AI would favor consumers, and all transactional-based Internet companies would need to adapt strategies to compete for changing purchase behavior.
Competition Among Tech Companies
The analyst stated that leading AI tech companies, including Google, Meta Platforms META, and OpenAI, are in intense competition to be the starting point “Agent” to help consumers navigate their lives. Within Online media, Post expects two major monetization shifts driven by Agentic AI: users are increasingly willing to pay (subscribe) for added AI functionality, and an ad model shift from CPC (Cost Per Click) to CPA (Cost Per Action/Acquisition.
Impact on eCommerce and Travel Industry
Post expects Agentic AI to compress the multi-step shopping discovery process in eCommerce as consumers increasingly trust AI to deliver choices and outcomes. Also, AI engines are likely personalized, factoring in subscription benefits, favoring Amazon, he noted. Amazon, with its Prime lock-in, is building a 1-stop shopping agent that can buy from other sites.
Agentic AI will likely function as a personal travel agent, handling everything from trip planning to booking and potentially providing on-trip assistance. Gen AI chatbots can enhance travel planning, but Agentic AI will go further, making personalized booking decisions and automating the booking process, Post noted.
Implications for Travel Industry
While Uber Technologies UBER remains the analyst’s top pick in the broader travel and transportation sector, driven by AI’s potential to open up the competitive autonomous vehicle (AV) market, the near-term outlook positions Booking Holdings BKNG as the most favorably situated. Agentic AI companies, such as OpenAI’s Operator, will heavily rely on Online Travel Agencies (OTAs) like Booking for their extensive data and vast inventory to facilitate seamless booking processes, potentially at a lower cost than traditional paid search advertisements.
Furthermore, Post highlighted Booking’s highly successful Genius program, which accounts for over 50% of its bookings, as a key advantage, expecting AI Agents to favor such loyalty programs when making price comparisons for consumers.