From Generative AI to Agentic AI: The Next Evolution in Energy Trading Strategy

As generative AI continues to reshape the landscape of power and gas trading—enhancing data analysis, forecasting, and automation—a new frontier is rapidly emerging: agentic AI. This next generation of AI doesn't just generate outputs from inputs; it initiates, plans, and executes tasks with a degree of autonomy and strategic adaptability that marks a significant evolution.

So, what is agentic AI, and how could it transform the way energy marketers and traders operate?

What Is Agentic AI?

Agentic AI refers to systems designed to act with agency—autonomously pursuing goals, adapting to feedback, and managing complex workflows over time. Unlike generative AI, which typically completes tasks on request (e.g., summarizing a report or simulating market scenarios), agentic AI can:

  • Identify opportunities or problems without being prompted
  • Set sub-goals and manage dependencies across tasks
  • Interact with software and data sources in a goal-directed way
  • Coordinate actions across time and systems to achieve strategic objectives

Think of agentic AI as an intelligent co-pilot or autonomous analyst—able to operate independently while aligning with high-level business goals.

Strategic Implications for Energy Marketing & Trading

  1. Autonomous Strategy Assistants

Agentic AI can continuously monitor market trends, regulatory changes, price signals, and asset performance—proactively surfacing insights and recommending or even initiating trades within defined guardrails. This transforms AI from a reactive tool into a forward-leaning partner in market strategy.

Example: An agentic AI system could monitor ERCOT nodal prices, detect a pattern of congestion, suggest virtual transactions to arbitrage price spreads—for review and approval from a trader.

  1. Dynamic Portfolio Management

Rather than rebalancing trading portfolios on a fixed cadence, agentic AI can continually evaluate risk exposures and expected value under changing conditions. This makes it possible to manage risk proactively and exploit opportunities faster than traditional methods.

Use Case: For an IPP with renewable assets, agentic AI could model expected generation, assess ISO data, and dynamically suggest hedge adjustments based on weather, load forecasts, and contract positions.

  1. Intelligent Workflows and Process Automation

Agentic systems can automate multi-step processes across back, mid, and front-office functions—handling everything from counterparty onboarding and contract review to automated compliance reporting and reconciliation of settlement data.

By linking together tasks that once required human coordination, agentic AI can reduce operational drag and improve scalability—especially for lean teams or high-volume shops.

Challenges to Navigate

While promising, the transition to agentic AI brings new complexities:

  • Guardrails and Governance: Agentic systems need well-defined limits and human oversight to ensure responsible and safe operation.
  • Data and Systems Integration: Agentic AI’s success depends on seamless access to clean, real-time data across systems—from ETRMs to ISO portals and beyond.
  • Security and Trust: Autonomous systems introduce new risk vectors. Transparent design and robust monitoring are critical.
  • Change Management: People need to trust and understand AI-driven recommendations. Training, UI/UX design, and iterative rollouts help build adoption.

Conclusion

The rise of agentic AI represents a strategic leap forward for energy marketing and trading. While generative AI enhances specific tasks, agentic AI redefines how organizations think about workflows, decision-making, and automation at scale.

Forward-looking energy firms—whether utilities, IPPs, marketers, or traders—should begin exploring pilot use cases and identifying where autonomy can drive measurable value. The winners in the next phase of digital transformation will be those who harness this technology not just to optimize—but to reimagine how trading and commercial operations get done.