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What is an AI agent? The confusion that reigns in Silicon Valley

AI agent - your next employee

Photo: midjourney / Jan Macarol

Silicon Valley is excited about AI agents. Sam Altman, CEO of OpenAI, predicts that agents will “enter the workforce” this year. Microsoft’s Satya Nadella promises that they will replace certain scientific jobs, and Salesforce’s Marc Benioff is aiming to make his company “the leading provider of digital workforces” through its “agent” services. But there’s one big problem: no one knows exactly what an AI agent even is. What is an AI agent anyway?

What is it anyway AI agent? In recent years, the tech industry has been loudly proclaiming that AI agents—the latest buzzword—will change everything. Just like chatbots like ChatGPT, changing the way we get information, agents are set to revolutionize the way we work. But before that happens, it would be good to at least agree on what the term means. Right now, “agent” has become another one of those AI-related words—like “multimodality” or “AGI”—that is losing meaning through overuse.

The different faces of AI agents

OpenAI says agents are “automated systems that autonomously perform tasks on behalf of users.” Their Operator, for example, can book concert tickets or order groceries online. Microsoft sees them as “new applications for the AI-powered world,” tailored for specific professional tasks, while assistants merely help with general tasks like writing emails. Salesforce, however, offers a broad definition: agents are systems that understand and answer customer questions without human intervention, and are divided into six categories, from “simple reflex agents” to “utility-based agents.”

Anthropic, an AI lab, tries to clear up the confusion by stating that agents can be defined in many ways—from fully autonomous systems that operate over long periods of time to systems that follow predefined workflows. But even that doesn’t help much, as definitions continue to vary from company to company. What is an AI agent anyway?

Why such confusion? What is an AI agent anyway?

Part of the problem is that AI agents, like AI itself, are vague and constantly evolving. OpenAI recently launched Operator, Google Project Mariner, and Perplexity Shopping Agent—all with different capabilities. Ryan Salva, a senior director at Google, told TechCrunch that he “hates” the word “agent” because the industry has misused it to the point where it’s become meaningless. OpenAI’s Leher Pathak even said at the X Network that she sees “assistant” and “agent” as interchangeable terms, adding to the confusion.

IDC's Rich Villars says that tech companies have long been shirking strict technical definitions, more interested in what they can achieve. Andrew Ng, founder of DeepLearning.ai, blames marketing: "The concept of AI agents used to have a technical meaning until about a year ago when it was taken over by marketers and big companies."

What do AI agents actually do?

Despite the confusion, an AI agent can be defined as an autonomous system that uses artificial intelligence to perform tasks. Simple examples include virtual assistants like Siri or Alexa that manage schedules or send messages. More advanced agents are emerging in smart cities, where they optimize traffic flows, or in the financial sector, where they detect fraud. In healthcare, they can automate eligibility checks for services, and in e-commerce, they help find prescriptions and fill shopping carts, as Google’s Project Mariner does.

Opportunities and challenges

Jim Rowan of Deloitte sees this ambiguity as both an opportunity and a challenge. On the one hand, it allows for flexibility – companies can tailor agents to their needs. On the other hand, it leads to “misaligned expectations” and makes it difficult to measure the value of these projects. Without at least internal standardization, it is difficult to assess performance or ensure consistent results.

If the evolution of the term “AI” is any indication, it seems unlikely that the industry will reach a consensus on the definition of an “agent” anytime soon. Maybe never. But that’s not stopping companies like OpenAI, Microsoft, and Salesforce from investing billions in this technology, promising that it will transform the way we work and live.

Conclusion: A future without definition?

What is an AI agent? AI agents may be the future, but for now they remain a mystery – even to those who build them. As the technology evolves, we may have to accept that “agent” is more of a vision than a precise concept. And perhaps that vagueness is their power: their ability to adapt to endless needs and challenges. But until we’re all on the same page, the question “What is an AI agent?” will continue to baffle users and experts alike.

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