AI explained: what business owners need to know

Artificial intelligence has moved fast over the past few years. Many business owners feel like they skipped a chapter or two along the way.

First came automation – when software handles a task for you automatically, based on a set of rules you define. Then tools that could write, summarise or answer questions. Now you may hear phrases like 'AI-powered workflows' or 'agentic commerce' and wonder what they actually mean for your business.

This guide breaks AI down in basic terms. It explains how today’s tools work, how they differ from earlier automation and where newer ideas like agentic commerce come into play. Most importantly, it focuses on what merchants need to know to get value from AI without overcomplicating things.

What artificial intelligence really means

At its core, artificial intelligence refers to software that can learn from data and make decisions or predictions without being explicitly programmed for every scenario.

That definition can sound abstract, so it helps to compare AI to tools you may already use.

Traditional software follows strict instructions. If this happens, do that.

AI-powered software can recognise patterns, adapt to new information and improve over time. Instead of following one fixed path, it can choose from several options based on what it sees happening.

For businesses, that difference matters because it moves technology from simply recording activity to actively supporting decisions.

Automation vs AI: a simple way to think about it

One of the biggest sources of confusion for merchants is the difference between automation and AI. They work together, but they are not the same.

Automation handles repetitive tasks using predefined rules. For example, sending a receipt after a payment or updating inventory after a sale. Automation saves time, but it only does what it’s been told to do.

Artificial intelligence builds on automation by adding judgment. AI can analyse data, identify patterns and decide which action makes the most sense based on the situation.

Most modern business tools combine both. Automation manages routine steps. AI helps decide what should happen next.

How AI has evolved in business tools

AI hasn’t arrived all at once. It has evolved in stages that build on each other.

Early AI focused on analysis, such as spotting trends or flagging unusual activity.

Then came generative AI, which responds to prompts by creating content, like drafting emails or answering customer questions.

More recently, businesses are starting to see AI systems that can take limited action on their behalf. Instead of just making suggestions, these systems can manage workflows or complete multi-step processes within clear boundaries.

This is where the idea of agentic commerce starts to emerge.

What agentic commerce means in practical terms

Agentic commerce refers to AI-enabled systems that don’t just analyse or respond, but can also act to achieve a business outcome.

Rather than handling one isolated task, an agentic system can observe what’s happening, decide what to do next and take action, all within rules set by the business.

'The difference isn’t just speed. It’s adaptability.'

For example:

• Basic automation might flag a failed payment.
• An agentic system could retry the transaction using another method, notify the customer if needed, update internal records and escalate the issue only if it keeps happening.

The difference isn’t just speed. It’s adaptability. Agentic systems can respond to changing conditions instead of following a single, fixed path.

Worldpay’s Agentic Commerce Report highlights this shift toward commerce systems that can act in real time and adapt automatically, rather than relying on static workflows or after-the-fact reporting. For business owners, that evolution is about efficiency and resilience, not complexity.

What AI and agentic commerce look like

For businesses of all sizes, AI is rarely about replacing people. It’s about reducing manual work, lowering risk and helping small teams keep up with customer expectations.

Common examples include:

• Customer support: Responding to routine questions, identifying common issues and routing complex cases to a human.
• Operations: Monitoring inventory levels, spotting demand changes and triggering reorders.
• Marketing: Personalising messages and identifying which campaigns are driving results.
• Payments: Monitoring transactions in real time, flagging unusual behaviour and helping resolve issues before they impact customers.

As agentic capabilities mature, these systems increasingly manage entire workflows rather than individual tasks.

Why this matters more now

Customers expect fast, consistent experiences. At the same time, many businesses operate with limited staff and resources.

AI helps bridge that gap by embedding intelligence into everyday processes. Agentic commerce goes one step further by allowing systems to act on that intelligence, reducing delays and manual intervention.

This isn’t about adopting cutting-edge technology for its own sake. It’s about keeping your business responsive as expectations rise.

What AI and agentic commerce are not

These systems are not autonomous black boxes running your business without oversight. They operate within guardrails defined by people.

They also aren’t 'set it and forget it' solutions. Like any business tool, they require monitoring, tuning and clear accountability.

AI supports decision-making. It doesn’t replace responsibility.

How merchants can get started without overthinking it

The best way to approach AI is to start small.

Identify one area where manual work, delays or errors create friction. Look for tools that already include AI or agentic capabilities rather than trying to build something new.

'The best way to approach AI is to start small.'

Ask vendors simple questions: What decisions does the system make? When does a human step in? What outcomes does it improve?

Focus on results, not terminology.

Why payments are often the first place AI shows up

Payments are one of the most time-sensitive and complex parts of any business. They involve real-time decisions, customer trust and strict security requirements.

That’s why payments are a natural fit for AI and agentic intelligence. Systems can adapt in the moment, not after the fact.

As a customer-centric payments company, Worldpay focuses on making this complexity manageable for businesses of all sizes. Agentic commerce builds on secure, scalable payments infrastructure to help businesses move faster while staying in control.

AI as a practical next step, not a leap

AI doesn’t require a radical transformation overnight. For most businesses, it will arrive gradually, embedded into tools they already use.

Understanding how AI is evolving, from automation to agentic commerce, helps you make smarter choices as those capabilities become more common.

The goal isn’t to chase the future. It’s to make everyday decisions easier, faster and more reliable so you can focus on growing your business.