STAMFORD, Conn.--(BUSINESS WIRE)--Oct 7, 2025--
The current supply of agentic AI models, platforms and products far exceeds demand, which will result in consolidation and market correction, according to Gartner, Inc., a business and technology insights company.
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Gartner analysts anticipate that agentic AI markets will consolidate in the short term as hype and fear of missing out (FOMO) give way to fundamental economics. In this AI Vendor Race, the losers of consolidation will be undifferentiated AI companies and their investors. The winners will be capital-rich incumbents with the resources to acquire promising technologies and talent.
“While we see early signs of market correction and consolidation, product leaders should recognize this as a regular part of the product life cycle, not a sign of inevitable economic crisis,” said Will Sommer, Senior Director Analyst at Gartner. “Over the longer term, consolidation will enable industry leaders to develop agentic products that meet the technical and business requirements of customers who are presently struggling to adopt AI agents.”
The mass proliferation of AI providers launching agentic models, agentic-integrated platforms and other agent-infused products far exceeds the present demand (see Figure 1).
Similar to other corrections in energy, telecommunications, and the dot-coms, product leaders should view this stage of the agentic AI market as a transition period in which business models are forced to calibrate to transformational technologies.
“The impending agentic AI market correction is distinct from speculative bubbles fueled by systemic financial engineering, fraud or policy,” Sommer said. “At this point, the underlying product, agentic AI, is sound, and the current market correction, where markets rationalize and consolidate, is a regular part of the product life cycle.
“However, a ‘speculative bubble’ could still form if investment becomes detached from agentic AI’s intrinsic potential to deliver tangible and commensurate economic value.”
Large tech companies have already been acquiring smaller, specialized AI firms, signaling the start of the market correction phase. With this consolidation will come benefits of scale and vertical integration.
“Large providers will establish expansive, integrated ecosystems that significantly improve agentic performance, leading to more reliable products targeted at specific business outcomes,” said Sommer. “Domain-specific language models, which provide superior value and performance in specialized applications, represent one such innovation.”
These evolutions, paired with changing consumer habits, skills and processes, will facilitate the mass adoption of agentic products. The remaining providers — the newly emerged AI incumbents — will attain sustainable growth and eventually the agentic AI market will surpass “adoption” phase expectations based on tangible metrics of productivity and profit.
Gartner clients can read more in the report Tech FutureSight: An AI Market Correction Is Imminent; It Won’t Be the Last.
Learn how to build actionable strategies to align your business, empower your teams, and boost revenue in the age of agentic AI in the complimentary Gartner insights 5 Steps to Seize Agentic AI Opportunity.
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Figure 1: AI Adoption Gap
BETHLEHEM, West Bank (AP) — Mohamad Al-Assi ran beneath the concrete wall as the sun rose over Bethlehem. His Nikes pounded the gravel, his breath fogging the air as graffiti and paint splatter blurred past with each stride.
The road along the barrier separating Israel from the occupied West Bank makes up a stretch of a marathon route that Al-Assi and thousands of others ran on Friday. The event is open to people in other parts of the world running in solidarity with the Palestinians and another, shorter race was happening in Gaza.
The race, known as the Palestine Marathon, was held for the first time in three years and was among the first big international events in the West Bank since the start of the Israel-Hamas war. Festivals, conferences and holiday festivities that once drew thousands have been scaled back or canceled because of the war in Gaza and heightened Israeli restrictions.
It marked a turning point for Al-Assi, 27, who was released from Israeli detention six months ago. Video from that day shows him gaunt-faced and hollow-eyed, his once muscular legs weakened after more than two and a half years of prison.
He began training in December, gradually upping his mileage every month since. He ran 62 miles (100 kilometers) that first month, and in April reached 135 miles (217 kilometers), according to his account on the tracking app Strava.
He jogs in the morning after his mother wakes him up in their home in Dheisheh, a Palestinian refugee camp made up of graffiti-covered cinderblock homes in tangled alleyways.
“The main difficulties we face are the cars on the roads and the presence of Israeli security forces along the route where I train,” Al-Assi said.
He had to suspend his training several times because of military operations in the camp.
“I would return home feeling hopeless because I couldn't do what I had intended to do,” Al-Assi said.
In the West Bank, runners cannot complete a 26.2-mile (42.2-kilometer) course without hitting a checkpoint or military gate, which is why Friday's marathon route looped around the same circuit twice.
They ran up through the narrow streets of two Palestinian refugee camps and down to a farming town next to Bethlehem where fields are divided by the concrete wall, barbed wire and cameras. The course hooked back to finish at Bethlehem’s Manger Square.
Organizers say the race highlights restrictions facing Palestinians in the occupied West Bank, where checkpoints can disrupt even routine commutes and where open land for hiking, biking and running is increasingly taken by Israeli settlements and outposts.
“Marathon runners anywhere may ‘hit a wall’ under the physical and emotional strain of completing the 42-kilometer race course," they said on the marathon's website.
But in the West Bank, they added, "runners literally hit the Wall.”
At a time when the West Bank’s economy is struggling and in the shadow of Gaza's fragile ceasefire and stalled rebuilding efforts, the atmosphere in Bethlehem was celebratory. Crowds gathered near the Church of the Nativity to cheer runners at the race's early morning start and finish. Bagpipes blared and drummers pounded out traditional rhythms through streets along the route.
On a beachside road in Nuseirat in central Gaza — which is roughly the length of a marathon — 15 disabled people, including amputees, ran a 2K, and a couple thousand of people ran a 5K. Thirteen years after the U.N. agency for Palestinian refugees, known as UNRWA, canceled a 2013 marathon because Hamas forbade women from participating, the women were back.
Haya Alnaji, a 22-year-old woman who ran in the 5K, said the number of people taking part reflected that Palestinians in Gaza were determined to live and persevere despite the devastation wrought by more than two years of war.
“All of Gaza loves sports,” she said.
Al-Assi was arrested in April 2023, and imprisoned under administrative detention, which allows Israel to hold detainees for months without charge. Between 3,000 and 4,000 Palestinians are being held under that system, according to Israeli rights groups and the Palestinian Prisoners Society.
In October 2023, Al-Assi was sentenced for transferring money to suspicious entities, a charge he denies. Israel closely monitors money transfers — particularly to Gaza — for fear that funds could end up in the hands of militants. Palestinians, however, say donations and charitable contributions are often swept up in the dragnet. Israel’s military, Shin Bet and Prison Service did not answer questions about Al-Assi's charges.
In Israeli prisons — where detainees routinely complain of inadequate diets — Al-Assi said nearly everyone goes hungry. The weight he lost eroded the endurance built through 10 years of training.
“I have more muscle mass than fat, so when I lost weight, the loss came from my muscles rather than fat,” he said. “This had a major impact on my physical fitness.”
He also had to regain the mental fortitude to run a marathon.
“I was emotionally shattered after spending such a long period in prison,” he said.
On Friday, he collapsed to his knees, bowing and thanking God after finishing second overall, as supporters and journalists encircled him. He dedicated his run to Palestinians still in Israeli detention.
“After 32 months in prison, Mohamad Al-Assi is first in his class!” he shouted through tears, raising his hands and looking up to the sky.
__ Imad Isseid contributed from Bethlehem, West Bank and Abdel Kareem Hana from Nuseirat, Gaza Strip.
A Palestinian amputee runner takes part in the 2-kilometer Palestine Marathon along the coastal road near Nuseirat in the central Gaza Strip, Friday, May 8, 2026. (AP Photo/Abdel Kareem Hana)
Palestinian runners take part in the 5-kilometer Palestine Marathon along the coastal road near Nuseirat in the central Gaza Strip, Friday, May 8, 2026. (AP Photo/Abdel Kareem Hana)
Runners participate in the Palestine Marathon in the West Bank city of Bethlehem, Friday, May 8, 2026. (AP Photo/Mahmoud Illean)
Runners pass by Israel's separation wall as they compete in the Palestine Marathon in the West Bank city of Bethlehem, Friday, May 8, 2026. (AP Photo/Mahmoud Illean)
Palestinian Mohamad Al-Assi, who was released from Israeli detention six months ago, runs past Israel's separation wall as he trains ahead of the Palestine Marathon in the West Bank city of Bethlehem, Thursday, May 7, 2026. (AP Photo/Sam Metz)
