arXiv:2511.00739v1 Announce Type: new Abstract: Agentic AI frameworks add a decision-making orchestrator embedded with external tools, including web search, Python interpreter, contextual database, and others, on top of monolithic LLMs, turning them from passive text oracles into autonomous problem-solvers that can plan, call tools, remember past steps, and adapt on the fly. This paper aims to characterize and understand the system bottlenecks introduced by agentic AI workloads from a largely overlooked CPU-centric perspective. We first systematically characterize Agentic AI on the basis of orchestrator/decision making component, inference path dynamics and repetitiveness of the agentic flow which directly influences the system-level performance. Thereafter, based on the characterization, we choose five representative agentic AI workloads- Haystack RAG, Toolformer, ChemCrow, Langchain and SWE-Agent to profile latency, throughput and energy metrics and demystify the significant impact of CPUs on these metrics relative to GPUs. We observe that - 1. Tool processing on CPUs can take up to 90.6% of the total latency; 2. Agentic throughput gets bottlenecked either by CPU factors - coherence, synchronization and over-subscription of cores or GPU factors - main memory capacity and bandwidth; \circled{3} CPU dynamic energy consumes up to 44% of the total dynamic energy at large batch sizes. Based on the profiling insights, we present two key optimizations- 1. CPU and GPU-Aware Micro-batching (CGAM) and 2. Mixed Agentic Workload Scheduling (MAWS) for homogeneous and heterogeneous agentic workloads respectively to demonstrate the potential to improve the performance, efficiency, and scalability of agentic AI. We achieve up to 2.1x and 1.41x P50 latency speedup compared to the multi-processing benchmark for homogeneous and heterogeneous agentic workloads respectively.