Artificial intelligence agents like Muse and Instinct could be a boon for consumers, helping them with everything from booking cheaper flights more easily to automating the process of switching to higher-yield savings accounts. While that prospect has led to some dramatic stock price swings among companies that could be affected, chances are that agentic AI will have a more nuanced impact than some might imagine.

Take the retail electricity market. More than a dozen states let customers choose their provider, but many people don't bother switching, even if doing so might save them money, because it feels like too much of a hassle. That's great for the biggest providers, which can charge more because of this consumer inertia.

But what if AI agents like Muse made it simpler to make a switch and get a better deal on electricity? That's exactly the scenario that Citi analysts mapped out in a new note out Wednesday morning.

Their conclusion: While retail electricity businesses are at risk of disruption that could erode their margins and valuation multiples, larger providers such as Constellation Energy, NRG, and Vistra "are well positioned with tools to limit price discovery and deter switching."

The result would be an industry consolidation that puts smaller providers out of business. "Retail provider margins could be compressed, and the smaller players may go out of business during the period of market stress," the analysts wrote.

All this doesn't mean that companies like Constellation, which also has a large commercial and industrial business, won't see lower margins from their retail business. Rather, it shows that the impact of agentic AI on businesses may not be as clear-cut as some think.

Shares of Constellation were down 1.6% on Wednesday, while NRG stock was up 3% and Vistra was up more than 2.4%.