As technology continues to advance and enterprises increasingly deploy innovative digital technologies to power and transform their business processes, Smart Organizations are adopting Agentic Artificial Intelligence (Agentic AI) to automate, optimize, and enhance operational performance in the digital age. Unlike conventional AI systems that primarily execute predefined tasks and provide analytical insights, Agentic AI possesses autonomous decision-making, adaptive learning, goal-oriented reasoning, and proactive execution capabilities that enable organizations to respond dynamically to changing business environments. Within the context of Industry 5.0, which emphasizes human-centricity, sustainability, resilience, and intelligent collaboration between humans and machines, Agentic AI is emerging as a strategic enabler of business optimization and organizational transformation. This study explores the adoption of Agentic AI within industry 5.0 Smart Organizations and examines its impact on operational efficiency, decision-making quality, workforce productivity, customer experience, supply chain performance, and organizational resilience. Drawing upon Human–AI Collaboration Theory, Socio-Technical Systems Theory, Dynamic Capabilities Theory, and Industry 5.0 principles, the research proposes a conceptual framework that integrates autonomous AI agents, human expertise, and digital enterprise ecosystems to create adaptive and self-optimizing organizations. The study further investigates the critical success factors influencing Agentic AI adoption, including technological readiness, organizational culture, governance structures, workforce competencies, data infrastructure, and ethical considerations. The findings demonstrate that Agentic AI significantly contributes to business optimization by reducing operational inefficiencies, improving resource utilization, accelerating decision cycles, enhancing predictive capabilities, and enabling continuous process improvement. Furthermore, the research argues that the convergence of Industry 5.0 and Agentic AI represents a paradigm shift from traditional automation toward autonomous, collaborative, and intelligent enterprise ecosystems where humans and AI agents work synergistically to generate sustainable business value. The study contributes to the emerging body of knowledge on Industry 5.0 by providing theoretical and practical insights into how Smart Organizations can strategically leverage Agentic AI to achieve competitive advantage, organizational agility, and long-term business sustainability in the age of artificial intelligence.