Understanding AI Agents: Evolution and Current State

Tony Leonard
4 min readJun 12, 2024

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Lately, AI agents have hit the headlines, but what are these, and how do they differ from the earlier AI assistants? This article investigates the change in the process of evolution that moved AI assistants toward AI agents and shed light on some significant upgrades, the summation of which has resulted in this transition, alongside new capabilities these agents are bringing to the table. We also look at the challenges and future potential of AI agents across industries.

The Transition from AI Assistants to AI Agents

First-Generation AI Assistants

This begins with the AI assistants, of course, one very popular one in ChatGPT, that really took form around 2022, and perhaps whose relatively sudden rise in popularity was due to the conversational capabilities of the model and the kind of understanding it had of user inputs. Coupled with some quite creative outputs, there were, however, notable limitations in this early framework, which have been addressed over time through different upgrades.

Key Upgrades Leading to AI Agents

1. Better Instructions and Prompt Engineering: With better instructions and direction, often called prompt engineering or custom instructions, AI assistants have advanced from programming to handling various situations. Such explicit expectations make it easy for AI to adopt specific personas and avoid undesirable behaviors.

2. Document Referencing: Another essential stride in the field was enabling the AI assistants to reference documents before they respond. This reduces wrong outputs and increases the domain-specific knowledge; hence, the answers become very accurate and on point.

3. Search and Web Access: The original limitation of AI to the existing training data was from some recent happenings. By now, it is already assured that access to search engines and the internet provides AI with the potential for looking up current information to, therefore, give answers closer to the time and more precise.

4. Integration of Tools: Inclusion of tools such as calculators and programming environments has enhanced the capability of the AI assistant. Using outward tools, either by accessing or integrating Wolfram Alpha or compute environments, the AI can do things like math and programming reasonably efficiently.

5. Better Reasoning and Planning: Better reasoning and planning abilities have been added due to advanced techniques in orchestration and prompt engineering, through which better problem resolution can be done via AI assistants.

6. Interacting with External Systems: AI Assistants are able today to retrieve data from business systems and communicate and interact with external systems — thus providing more complete responses and following the needful.

7. Multimodal Interactions: AI assistants can do more than interact through text — they have voice-first functionality and will soon even include video. These multimodal abilities introduce various potential new use cases and applications.

Transition to AI Agents

All these improvements take the creation of AI agents able to solve complex problems by performing more complex actions with advanced tools and interacting with the world physically in complex ways. With the ability to troubleshoot, plan, and use other tools and systems effectively in execution, the task is carried out efficiently.

Challenges to the Deployment of AI agents

For all the sophistication now available, productionizing AI agents is subject to a few ongoing challenges:

1. Speed: AI agents are slower because they have many LLM calls, and their working increases the operation’s complexity.

2. Cost: Running AI agents is an expensive affair, especially with third-party LLM providers charging on the length and frequency of prompts. Even internal deployments consume a massive amount of GPU resources, affecting operational expenditure.

3. Unpredictable Outputs: More errors, hence vigorous validation, auditing, and monitoring to ensure reliable performance.

Future Potential and Industry Application

But then, the promise held out by AI agents is immense: Big companies are in the race to launch general-purpose AI agents, and specialized ones are designing agents for software engineering, healthcare, insurance, and financial services. All these advancements promise to transform customer experience automation and more in these spaces.

Conclusion

The transition from AI assistants to AI agents would, in all forms, change the very meaning and scope of artificial intelligence. Indeed, there are enormous challenges to be dealt with, but potential benefits and new use cases are as comprehensive. The AI community is making its journey toward breakthrough innovation, and indeed AI agents will have a more critical role within different industries.

Meet Tony Leonard — a dynamic tech wizard and storyteller based in Louisville, Kentucky. With a passion for innovation and enhancing client experiences, Tony merges technical expertise with operational prowess to drive outstanding results. Whether it’s creating cutting-edge digital marketing strategies or spearheading tech solutions, he’s your go-to for envisioning and realizing the future. Connect with Tony and let’s make something amazing together!

My thoughts…They have continued to further evolve from predecessors of these AI assistants, having better instructions, improved document referencing, search capabilities, integration of tools, and enhanced multimodal interactions. Such extensions have resulted in even more capable AI agents and endow them with better problem-solving and interaction capacities with their environment in a better way. Although it is beset with challenges regarding slow speed, high cost, and errors that it may yield, the future is auspicious for AI agents, as they are increasingly becoming common in various industries. Major companies are already developing specialized AI agents to take over such fields as software engineering, healthcare, and financial services.

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Tony Leonard
Tony Leonard

Written by Tony Leonard

Tony Leonard of Louisville, KY: Digital strategist, author of "The Bourbon Whisperer", a technology and marketing visionary. Connect: 🌐 tonyleonardusa.com.

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