As artificial intelligence evolves beyond chatbots into autonomous digital agents, some technology leaders are raising concerns about how the shift could affect competition and market dynamics. Among them is Cloudflare Chief Executive Officer Matthew Prince, who believes AI agents may make it increasingly difficult for smaller businesses to compete with larger, established companies.

Speaking about the growing role of AI in consumer decision-making, Prince warned that if AI agents begin selecting products and services on behalf of users, smaller businesses could struggle to gain visibility and attract customers in an increasingly automated marketplace.

Concerns Over an AI-Driven Marketplace

Prince argued that convincing an AI agent to choose a lesser-known business could prove far more challenging than persuading a human customer.

“Imagine you’re a small business and you’re trying to convince an agent to buy from you. How do you do that? I think it’s incredibly hard,” he said.

According to Prince, the widespread adoption of AI agents could gradually reinforce the dominance of larger companies that already enjoy strong brand recognition, extensive customer bases and significant online visibility.

He warned that such a trend could reduce opportunities for new market entrants and contribute to greater concentration of economic power over time.

“If you can’t have new entrants into markets, then you’re, over time, going to have just incredible consolidation,” Prince said.

How AI Agents Differ From Chatbots

The concerns stem from the rapid development of AI agents, a new category of artificial intelligence systems designed to perform tasks independently rather than simply respond to questions.

Unlike traditional generative AI chatbots, which primarily provide information or generate content, AI agents can take action on behalf of users.

For example, a user could ask an AI agent to find the best-quality mangoes at the lowest available price. The agent could then search multiple websites, compare options, make a purchase and arrange delivery without requiring additional input.

Many technology companies believe AI agents will eventually become responsible for a growing share of online activity, handling everything from shopping and travel bookings to business operations and administrative tasks.

Businesses Begin Preparing for AI Agents

As expectations around AI agents grow, companies are already adapting their products and services to accommodate them.

Financial services firm Morgan Stanley has begun modifying how clients access information and services through its ShareWorks and Equity Edge platforms.

The company is allowing clients to deploy AI agents capable of interacting directly with these systems, enabling automated retrieval of information and execution of routine tasks.

The move reflects a broader industry expectation that AI agents will increasingly act as intermediaries between users and digital platforms.

A Future Beyond Traditional Software Interfaces

Morgan Stanley has outlined a future in which users may no longer need to log into software applications designed for direct human interaction.

Instead, AI agents could access data, complete workflows and carry out transactions on behalf of users, reducing the need for manual navigation through websites and applications.

Supporters of the technology argue that such automation could improve efficiency and convenience. However, critics contend that it may also reshape competitive dynamics by concentrating attention on a smaller number of businesses and brands.

As companies race to develop increasingly capable AI agents, the debate is shifting beyond technological capability to broader questions about market competition, consumer choice and the future role of small businesses in a world where artificial intelligence increasingly makes decisions on behalf of people.

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