Agentic AI is transforming the landscape of API development and management by introducing autonomous, goal-oriented agents that can interpret context, make adaptive decisions, and drive outcomes in real-time, marking a significant shift from traditional static AI models. This advancement allows APIs to deliver dynamic, contextual, and personalized responses, optimizing performance, security, and scalability, and automating complex workflows to free developers for higher-level tasks. Integrating agentic AI into APIs offers numerous benefits, including enhanced efficiency, improved developer experience, and better scalability, while necessitating a reevaluation of API strategies and governance to address ethical, security, and accountability concerns. The competitive landscape is shaped by leading cloud providers, innovative startups, and pioneering organizations that are pushing the boundaries of AI-driven APIs, demonstrating the potential for new applications and long-term innovation in API ecosystems. To capitalize on the opportunities presented by agentic AI, businesses must invest in AI-centric infrastructure, cultivate an AI-fluent workforce, and foster a culture of innovation and agility to maintain a competitive edge in the rapidly advancing digital landscape.