Category: 3. Business

(Bloomberg) — The cooling of geopolitical tensions, a rally in big tech and solid economic data fueled gains in stocks, with the market remaining higher after an in-line inflation report. Short-dated bonds fell.

Equities rose around the world, with the S&P 500 up almost 1%. Tech megacaps rallied as comments by Nvidia Corp.’s chief Jensen Huang bolstered the artificial-intelligence trade. Small caps beat the US equity benchmark for a 14th straight session. JPMorgan Chase & Co. pared gains as President Donald Trump sued the lender and its head Jamie Dimon over alleged debanking.

Treasury two-year yields headed toward their highest since early December as strong economic data reinforced the argument for the Federal Reserve to keep rates on hold.

The US economy expanded in the third quarter by slightly more than initially reported, supported by stronger exports and smaller drag from inventories. Initial jobless claims steadied at 200,000 last week. And personal spending rose at a solid pace in November, underscoring consumer resilience.

“US consumers continue to underpin the economy,” said Lale Akoner at eToro. “Resilient spending lowers near-term recession risk and supports corporate revenues, particularly in consumer-facing sectors. However, steady demand also means interest rates are likely to stay higher for longer.”

Meantime, European Union lawmakers are expected to vote on ratifying the bloc’s trade deal with the US, restarting the process after Trump walked back his latest threat to impose tariffs on European allies that opposed his plans to annex Greenland. The island’s prime minister says he’s willing to go further in increasing defense, including agreeing on a permanent NATO mission.

“This episode once again highlights how headline-driven the market remains, and how quickly sentiment can flip when geopolitical risk is dialed back,” said Fawad Razaqzada at Forex.com.

The S&P 500 rose 0.8%. A gauge of the “Magnificent Seven” shares climbed 2.3%. The Russell 2000 index of small firms hit a fresh record. A key measure of stock volatility — the VIX — tumbled to around 15.

The yield on 10-year Treasuries was little changed at 4.25%. The dollar lost 0.3%. Oil sank as Ukrainian President Volodymyr Zelenskiy discussed plans for trilateral meetings with the US and Russia. Gold rose to all-time highs.

The latest data should reassure the Fed that the economy remains on a solid footing, despite a cooler labor market, said James McCann at Edward Jones.

“There looks to be little urgency to cut rates at next week’s meeting, and the central bank could stay on hold for longer should growth remain robust into 2026 and inflation continue to run at above target rates,” he added.

Inflation-adjusted gross domestic product increased at a revised 4.4% annualized rate, the fastest in two years. The Fed’s preferred measure of underlying inflation rose 0.2% in November from the prior month and 2.8% from a year earlier. The core personal consumption expenditure’s price index picked up slightly from October on an annual basis.

“This is likely going to keep the Fed on pause for a few a months, at least until we get a new Fed Chair who will likely push for renewed cuts,” said Sonu Varghese at Carson Group.

This set of new data reinforces the view that the US is experiencing stronger — not hotter — growth, according to Marco Casiraghi at Evercore.

“If macro conditions continue to evolve in this favorable manner, we think the Fed will keep rates on hold before delivering a cut in June – when the new Fed chair will take over,” and then cut two more times in the second half of 2026, he said.

Recent data support the Fed adopting a cautious approach to policy changes in the near term, according to Oscar Munoz and Gennadiy Goldberg at TD Securities.

“There is now a higher burden on the data to justify further easing,” they said.

The TD strategists expect policymakers to keep rates on hold at 3.50%-3.75%. While Fed Chair Jerome Powell is likely to sound noncommittal around near-term rate cuts, they expect him to remind markets that the median Fed official still looks for easing this year.

“Fundamentals are good and the Fed is likely to cut two or three times this year,” said Scott Helfstein at Global X. “That continues to set up a favorable backdrop even if the calm is occasionally disrupted by geopolitical volatility.”

Speculation that Europe could leverage US assets to retaliate against Trump’s bid for Greenland has been the chatter on trading floors and at the Davos gathering this week. Greenland’s pension fund is mulling whether it should continue investing in US stocks, in what its chief executive says would be a symbolic stand against the push to seize control of the island.

Trump vowed “big retaliation” if European countries sell US assets in response to his tariff threats related to Greenland, adding pressure on them to stick with an emerging deal over the future of the island.

“If they do, they do. But you know, if that would happen, there would be a big retaliation on our part,” Trump said during a Fox Business interview at the World Economic Forum in Davos. “And we have all the cards.”

Meantime, the dollar retained its supremacy in global trade despite the persistent uncertainty associated with Trump’s policies.

The greenback’s portion of international transactions rose to 50.5% in December, up from 46.8% a month earlier, according to the latest data compiled by global financial messaging service Swift, or the Society for Worldwide Interbank Financial Telecommunication. That’s the highest share since 2023 when the Belgium-headquartered consortium revised how it collects the transaction data.

There’s little sign of foreign investors shunning US equities and bonds amid tensions surrounding the Trump administration’s stance toward Greenland, according to JPMorgan strategists including Nikolaos Panigirtzoglou.

“Greenland is likely to stay in the headlines in the near term, and markets remain susceptible to fresh political or geopolitical developments,” said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management. “But the latest stock rebound serves as a reminder that favorable fundamentals remain in the driver’s seat.”

She maintains the view that staying invested via a diversified portfolio remains the most effective way to manage market uncertainty.

Geopolitics only truly affect stock prices when they have direct effects on the factors that truly influence equity valuations, according to Steve Sosnick at Interactive Brokers.

“Unless one can draw a straight line between the global event and the revenues, earnings, or cash flows of a particular company or sector – the items that directly affect the value of a company – then geopolitics can be considered ‘background noise’ from a market viewpoint, no matter how newsworthy the events,” he said.

Companies from around the world remain focused on American markets, driven by the money they’re getting out of the US, Nasdaq Inc. Chief Executive Officer Adena Friedman said.

“The investment firms are obligated to find the best returns,” Friedman told Bloomberg Television in Davos. There’s been a $3 trillion increase in equity flows into the US from foreign investors in the past year, she said. “We just have to continue to drive those outsize returns within our economy to continue the flows coming in.”

BlackRock Inc. Chief Executive Officer Larry Fink said there is no bubble in artificial intelligence, emphasizing the volume of investment needed to develop the technology.

“I don’t think there is any uncertainty about AI,” Fink said in a Bloomberg Television interview on the sidelines of the World Economic Forum. “I sincerely believe there is no bubble in the AI space.”

With small-caps are outperforming large-caps yet again, there is a clear shift in leadership underway, noted Jonathan Krinsky at BTIG.

“While there will be pullbacks, we want to stick on the side of this new trend which is still in its early days, in our view,” he said.

Retail investors shelled out an “impressive” $12.9 billion on equities this week, according to JPMorgan strategist Arun Jain. On Tuesday, retail investors had responded to geopolitical developments by purchasing stocks, marking the third-largest single-day buying event in a year, he noted.

Meantime, trend-following funds are starting 2026 with fresh momentum, outperforming stocks and bonds after a year of false starts.

A Societe Generale index tracking major trend-following funds has climbed almost 4% in the opening weeks of the year, the second-strongest start on record in data going back to 2000. The performance follows a rally in metals, a weakening yen and resilient global equities, just the kind of sustained price moves these strategies need to deliver returns.

Despite the fact that growth stocks are negative year-to-date, momentum names are doing well, noted Louis Navellier at Navellier & Associates.

“The broadening of returns is a positive development, and the strength of smaller companies is a major vote of confidence in broad economic growth and reflects the expectation of lower interest rates, which is more meaningful for smaller companies,” he concluded.

Corporate Highlights:

Tesla Inc. will probably sell its Optimus robots to the public by the end of next year, according to Chief Executive Officer Elon Musk, who’s said the carmaker’s fortunes will be increasingly dependent on humanoid machines. SpaceX has lined up four banks to lead its initial public offering, according to people familiar with the matter, as Musk’s rocket and satellite firm moves forward with plans for the biggest-ever listing. Apple Inc. has expanded the job of hardware chief John Ternus to include design work, solidifying his status as a leading contender to eventually succeed Chief Executive Officer Tim Cook. Alphabet Inc.’s Google is rolling out a new option to personalize search results by tapping user data from the tech giant’s other applications, its latest bid to keep ahead of competition from the likes of OpenAI. Alibaba Group Holding Ltd. is preparing to list its chipmaking arm, tapping strong investor interest in the small circle of companies aspiring to compete with Nvidia Corp. in the hot AI accelerator business. Netflix Inc. co-Chief Executive Officer Ted Sarandos is planning to testify in February at a US Senate committee hearing looking into his company’s proposed $82.7 billion purchase of the streaming and studio operations of Warner Bros. Discovery Inc. Paramount Skydance Corp. again extended its tender offer for Warner Bros. Discovery Inc. shares and said it would ask investors to vote against a proposed sale to Netflix Inc. at a special meeting of Warner Bros. shareholders. Bank of America Corp. and Citigroup Inc. are exploring options they could offer up as an olive branch to satisfy President Trump’s demand to cap credit card interest rates at 10% for one year. US airlines are already announcing backup plans for passengers ahead of an expected winter storm this weekend that could be the biggest of the season and cause massive disruptions to air traffic nationwide. General Motors Co. plans to move production of its next-generation Buick Envision compact SUV, which is currently built in China, to a plant in Kansas in 2028, a sign of the pressure automakers are under to reshore output of vehicles sold in the US. Procter & Gamble Co.’s executives signaled sales are rebounding in the US and expressed confidence the company will meet its full-year guidance. General Electric Co.’s full-year outlook underwhelmed investors, a sign of high expectations on the jet-engine maker after a steep rise in the stock last year. Abbott Laboratories forecast a first-quarter profit that was lower than Wall Street expected and missed fourth-quarter sales estimates after its nutrition unit fell short of expectations, sending shares lower. Moderna Inc.’s chief executive officer said the company doesn’t plan to invest in new late-stage vaccine trials because of growing opposition to immunizations from US officials. Waymo will start offering its robotaxi service in Miami to the public Thursday, the first of around a dozen cities where the Alphabet Inc. company plans to launch this year. Freeport-McMoRan Inc. is making progress on a restart of its sprawling Indonesian copper mine, it said Thursday, after a deadly mudslide shuttered the operation that’s critical to global supply. Target Corp. is adding two retail veterans to its board as the beleaguered retailer seeks to reverse a sales slump under incoming Chief Executive Officer Michael Fiddelke. Lululemon Athletica Inc.’s “Get Low” leggings, derided for being see-through, are available for sale again online. Shoppers just have to make sure to read the disclaimers first. PayPal Holdings Inc. agreed to acquire Cymbio, a platform designed to help merchants sell products across AI chatbots. Terms weren’t disclosed. General Fusion Inc. has agreed to a merger with a blank-check company in a deal that’s expected to create one of the first publicly traded nuclear fusion technology developers. Some of the main moves in markets:

Stocks

The S&P 500 rose 0.8% as of 2:36 p.m. New York time The Nasdaq 100 rose 1% The Dow Jones Industrial Average rose 0.9% The MSCI World Index rose 0.9% Bloomberg Magnificent 7 Total Return Index rose 2.3% Philadelphia Stock Exchange Semiconductor Index rose 0.4% The Russell 2000 Index rose 1% KBW Bank Index rose 0.9% Currencies

The Bloomberg Dollar Spot Index fell 0.3% The euro rose 0.5% to $1.1743 The British pound rose 0.4% to $1.3489 The Japanese yen was little changed at 158.43 per dollar Cryptocurrencies

Bitcoin fell 0.9% to $89,413.96 Ether fell 2.8% to $2,944.25 Bonds

The yield on 10-year Treasuries was little changed at 4.25% Germany’s 10-year yield was little changed at 2.89% Britain’s 10-year yield advanced two basis points to 4.47% The yield on 2-year Treasuries advanced three basis points to 3.61% The yield on 30-year Treasuries declined two basis points to 4.85% Commodities

West Texas Intermediate crude fell 2.1% to $59.36 a barrel Spot gold rose 1.7% to $4,912.33 an ounce ©2026 Bloomberg L.P.

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Giredestrant, a next-generation oral selective estrogen receptor degrader (SERD) and full antagonist, significantly improved invasive disease–free survival as adjuvant treatment for patients with estrogen receptor–positive, HER2-negative early breast cancer compared with standard-of-care endocrine therapy, according to data presented at the 2025 San Antonio Breast Cancer Symposium (SABCS).¹

Results from the global, randomized lidERA Breast Cancer trial position giredestrant as a potential new standard of care, marking the first phase III trial to demonstrate a benefit with an oral SERD in this setting.

The study met its primary endpoint of invasive disease–free survival, with a 30% reduction in the risk of invasive recurrence or death; this benefit appeared to be consistent across various subgroups. A favorable safety profile was reported, with a notably lower rate of treatment discontinuation compared with standard endocrine therapy.

“lidERA is a pivotal study…as we talk about these results in the adjuvant setting,” said Aditya Bardia, MD, MPH, FASCO, Program Director, Breast Medical Oncology, University of California at Los Angeles (UCLA) Jonsson Comprehensive Cancer Center.

As Dr. Bardia explained, estrogen receptor–positive breast cancer accounts for most breast cancers, with endocrine therapy being the mainstay of adjuvant management. Despite its efficacy, up to one-third of patients eventually experience recurrence, he stated.

Although advancements such as aromatase inhibitors in the early 2000s and, more recently, CDK4/6 inhibitors have improved outcomes, said Dr. Bardia, they have also introduced associated toxicities that lead many patients to early treatment discontinuation and increase their risk of recurrence. These limitations underscore the ongoing need for more effective and better tolerated adjuvant endocrine therapies.

Giredestrant is designed to induce full estrogen receptor antagonism and degradation, resulting in deep and sustained inhibition of estrogen receptor signaling across both ligand-dependent and ligand-independent pathways, which may offer a mechanistic advantage over aromatase inhibitors. Preclinical data and preliminary clinical trials (coopERA Breast Cancer, EMPRESS) have indicated that giredestrant exhibits increased potency and superior antiproliferative activity compared with other SERDs and standard endocrine therapies.

Study Design

The lidERA Breast Cancer study was a global, randomized phase III trial that enrolled 4,170 patients with stage I to III estrogen receptor–positive, HER2-negative early breast cancer. They were randomly assigned in a 1:1 ratio to receive either giredestrant (30 mg orally once daily, with concomitant luteinizing hormone-releasing hormone [LHRH] agonist therapy for pre- and perimenopausal women and for men) or standard-of-care endocrine therapy (tamoxifen or an aromatase inhibitor [ie, exemestane, letrozole, or anastrozole, with concomitant LHRH agonist therapy for pre- and perimenopausal women and for men]) for 5 years.

The primary endpoint was invasive disease–free survival, assessed in an intention-to-treat fashion. A prespecified efficacy interim analysis of invasive disease–free survival was performed after 336 events, at which time the first interim overall survival analysis also occurred per the hierarchical design.

The baseline demographics were found to be well balanced between the arms. The median age was 54.0 years, with 59.3% of patients being postmenopausal and approximately 40% premenopausal. About 50% of patients had stage II disease, 40% had stage III, and 10% had stage I. The majority of the study population had received chemotherapy prior to enrollment. In the standard-of-care endocrine therapy arm, 84% of patients were treated with an aromatase inhibitor, and 16% received tamoxifen.

At the data cutoff of August 8, 2025, with a median follow-up of 32.3 months, treatment had been discontinued in 347 patients receiving giredestrant and 520 receiving standard-of-care endocrine therapy.

Improvement in Invasive Disease-Free Survival

As Dr. Bardia reported, the study met its primary endpoint, demonstrating a statistically significant and clinically meaningful improvement in invasive disease–free survival with giredestrant vs standard-of-care endocrine therapy.

Giredestrant reduced the risk of invasive recurrence or death by 30%, corresponding to a hazard ratio (HR) of 0.70 (P = .0014). The 3-year invasive disease–free survival rate was 92.4% with giredestrant vs 89.6% with standard-of-care endocrine therapy, representing an absolute benefit of approximately 3%.

“The Kaplan-Meier curves for invasive disease–free survival separated early and remained separated over time,” said Dr. Bardia. “This superiority of giredestrant was consistent across all predefined subgroups, including region, menopausal status, risk, prior chemotherapy, and tumor stage [HR = 0.58 for stage II; HR = 0.74 for stage III].”

In addition, giredestrant demonstrated superiority in distant recurrence–free interval compared with standard-of-care endocrine therapy, representing a 31% reduction in the risk of developing distant metastatic disease (HR = 0.69), although absolute risks appeared to be low at this time point (96.1% vs 94.2%).

“Giredestrant also showed a trend for improvement in overall survival compared with standard endocrine therapy [HR = 0.79], although these results are immature at this interim analysis, and further follow-up is ongoing,” said Dr. Bardia.

The safety profile of giredestrant was found to be consistent with its known profile. The overall incidences of adverse events and grade 3 to 4 adverse events appeared comparable between the arms.

Of note, the discontinuation rate because of adverse events was lower with giredestrant (5.3%) compared with standard-of-care endocrine therapy (8.2%). This lower discontinuation rate was observed despite high compliance in both arms, with a mean dose intensity of over 99%. However, dose interruptions were more frequent with giredestrant (12.7% vs 6.6%).

Common adverse events in both arms included arthralgia (48.0% vs 47.1%), hot flush (27.4% vs 28.8%), and headache (15.3% vs 13.2%). Although arthralgias were common, said Dr. Bardia, those leading to discontinuation were lower with giredestrant (1.6% vs 3.7%).

Giredestrant was found to be associated with a higher incidence of bradycardia, occurring in approximately 10% of patients, but predominantly as asymptomatic grade 1 events. Grade 3 to 4 venous thromboembolism was more frequent in the standard-of-care endocrine therapy arm, likely reflecting tamoxifen use.

“These results support giredestrant as a potential new standard for patients with ER [estrogen receptor]-positive, HER2-negative early breast cancer,” Dr. Bardia concluded. 

DISCLOSURE: Dr. Bardia reported financial relationships with Pfizer, Novartis, Merck, Genentech, AstraZeneca/Daiichi Sankyo, Alyssum, Menarini, Gilead, Eli Lilly, and OnKure.

REFERENCE

1. Bardia A, Schmid P, Martin M, et al: Giredestrant vs standard-of-care endocrine therapy as adjuvant treatment for patients with estrogen receptor-positive, HER2-negative early breast cancer: Results from the global phase III lidERA Breast Cancer trial. SABCS 2025. Abstract GS1-10. Presented December 10, 2025.

EXPERT POINT OF VIEW

Invited discussant Lisa A. Carey, MD, ScM, FASCO, the L. Richardson and Marilyn Jacobs Preyer Distinguished Professor for Breast Cancer Research and Deputy Director of Clinical Sciences at the University of North Carolina (UNC) Lineberger Comprehensive Cancer Center, called the findings of the lidERA Breast Cancer trial a “pivotal moment” and the “first positive data for an oral SERD [selective estrogen receptor degrader] in the adjuvant setting.”

Dr. Carey began by tracing the history of estrogen receptor targeting in hormone receptor–positive disease. She highlighted that although advancements have been made in the metastatic setting with oral SERDs, the early breast cancer setting saw “not much in the last 20 years related to estrogen receptor targeting until now,” with the success of giredestrant.

Lisa A. Carey, MD, ScM, FASCO

Dr. Carey detailed key aspects of the lidERA Breast Cancer trial design, noting the inclusion of patients with high-risk stage I disease, the requirement for ovarian function suppression with giredestrant in premenopausal patients, and the allowance of short-term CDK4/6 inhibition before but not during the trial. She highlighted the trial’s predominantly high-risk patient population, with 70% falling into the high clinical risk category, and a significant proportion having node-positive disease. She pointed out that in the high-risk population treated in lidERA Breast Cancer, modern therapy for most would include a CDK4/6 inhibitor, which was not included in the study’s design.

Regarding the primary efficacy data, Dr. Carey affirmed that the invasive disease–free survival endpoint was met, with giredestrant reducing the risk of recurrence or death by 30% (hazard ratio [HR] = 0.70). Despite it being early (median follow-up = 32.3 months), she found the invasive disease–free survival and distant recurrence–free interval data “quite reassuring,” noting the early and sustained separation of the Kaplan-Meier curves. She estimated an absolute invasive disease–free survival difference of 2.8% at just under 3 years, which, while small, is “likely to grow with additional follow-up.”

Dr. Carey also praised the tolerability of giredestrant, noting a low rate of discontinuation (5.3% vs 8.2% for standard endocrine therapy), including fewer discontinuations because of musculoskeletal symptoms. She addressed the class effect of bradycardia, observing it was a “pretty minor issue” in lidERA Breast Cancer, with predominantly asymptomatic grade 1 events.

Crucially, Dr. Carey contextualized the findings against other adjuvant advances in hormone receptor–positive breast cancer, including those from the ATAC, monarchE, and NATALEE trials. She observed “similar differences, both proportional and absolute” (2%–3% absolute benefit and HRs of 0.7–0.8) at comparable follow-up times, suggesting the efficacy of giredestrant is generally consistent with other improvements seen in this setting.

Dr. Carey also discussed the potential implications for clinical practice, particularly regarding CDK4/6 inhibitors, which were not concurrently addressed in the trial. She proposed that giredestrant will be the favored endocrine therapy for patients not receiving a CDK4/6 inhibitor. For those in whom a CDK4/6 inhibitor is appropriate, she suggested an aromatase inhibitor plus CDK4/6 inhibition for the initial 2 years, followed by a potential switch to giredestrant, though she acknowledged this specific sequencing was not tested.

The cost implications of giredestrant, according to Dr. Carey, also warrant consideration. She noted that oral SERDs in the metastatic setting typically exceed $20,000 per month, emphasizing the “large potential impact on the national health-care systems” if giredestrant is priced similarly.

Dr. Carey concluded with a strong call for predictive biomarkers to tailor therapy beyond the estrogen receptor, as giredestrant has “very broad clinical implications,” and noted that models are needed to guide decision-making. 

DISCLOSURE: Dr. Carey reported no personal financial interests with any commercial entity.

First data protection regulatory report

In January 2026, and in the context of recent technological developments, industry announcements and market attention, the UK Information Commissioner’s Office (ICO) published a Tech Futures report on agentic AI. In doing so, it became the first data protection regulator to tackle the topic. The report does not constitute formal ICO guidance but does provide important insight to the regulator’s view on data protection implications, risks and how organisations may be able exploit the opportunities the technology offers. The report delivers on the action set out in the ICO’s AI and biometrics strategy to engage with industry to assess the data protection implications of agentic AI. It is intended to support the ICO’s ambition to encourage the responsible development and use of agentic AI.

This blog takes an initial look at the key messages that can be drawn from the ICO’s report and what organisations can learn at this stage of the regulator’s policy thinking.

The ICO’s report is to be welcomed in its assessment of evidence related to advancement, benefits and risk proliferation. Its nuanced approach provides a range of options as to how the technology may develop and be deployed. The report can therefore play a useful role in assisting organisations with initial risk assessments and planning for deployment.

The ICO has gathered significant evidence to inform the report and has transparently set out the methodology used and resources that can be considered alongside the report. 

Definitions

Terms such as agents and agentic AI are often used interchangeably and the ICO helpfully provides definitions to enable a common language for our discussions about implications of agentic AI in the data protection community.

The ICO explains that an agent is “software or a system that can carry out processes or tasks with varying levels of sophistication and automation.” It then explains that “when large language models (LLMs) or foundation models are integrated (‘scaffolded’) with other tools, including databases, memory, computer operating systems and ways of interacting with the world, they create what industry is agentic AI.” 

The ICO also notes that because agentic AI systems build on LLMs, some of the negative characteristic features of LLMs (such as hallucinations and bias) may be present. 

Agentic AI can take different forms, perhaps as a standalone agent or, when several agents are, combined, as a ‘multi-agent system’.

Likely evolution of agentic AI, capabilities and use cases

Four scenarios for the evolution of agentic AI are set out and explained in the ICO report:

1. Scarce, simple agents (low adoption, low agentic capability)
2. Just good enough to be everywhere (high adoption, low agentic capability)
3. Agents in waiting (low adoption, high agentic capability)
4. Ubiquitous agents (high adoption, high agentic capability)

It is important to understand the new capabilities that agentic AI may offer. The report highlights perception (i.e. working with a wide range of inputs), planning or reasoning-like actions (e.g. generating plans, dividing tasks, error checking), action (e.g. accessing tools, interacting with people or AI agents, running code), and learning and memory (i.e. adaptive decision making, correcting errors in future plans, learning preferences and from feedback) as capabilities likely to be demonstrated by agentic AI systems to some extent. The report also indicates that capabilities are being assessed by researchers based on autonomy, efficacy, goal complexity, generality and under-specification. The ICO’s report therefore focuses on how agents can autonomously pursue goals, adapt to new situations and contexts, and an exhibit some reasoning-like capacities.

Potential use cases covered in the report include research, coding, and planning, organising and executing transactions.   Use in agentic commerce, workplace applications, government services, automated cybersecurity applications, integrated personal assistants and the medical sector are also covered in the report, indicating a wide range of potential deployments. 

It is also important to note that the ICO’s assessment of the stakeholder evidence in the report indicates that the rate of improvement in LLM capabilities may slow or even stop in the short to medium term. The graph of agentic technology evolution may not be a linear one.

Looking further ahead, amongst other things, the ICO sees evidence that the following technical developments could emerge – truly multimodal agents, increasing agent autonomy and agent-to-agent communication and agentic AI embedded into a wider range of software and devices.   

Key data protection implications

Accountability and governance

A key message from the ICO is on accountability- organisations must continue to take responsibility for AI in the context of data protection:

“AI agency does not mean the removal of human, and therefore organisational, responsibility for data processing. Organisations must be clear on the expectations that still apply under data protection legislation.”

The ICO notes that currently, and for the foreseeable future, organisations can control factors such as the actions the agent is authorised to take and the information the agent can access. An important learning point for organisations planning agentic AI governance is to prioritise the effective risk assessment of these elements and ensure that relevant controls are in place.