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AI Agents have, so far, mostly been a dud
ai-agents

AI Agents have, so far, mostly been a dud

Despite hype, AI agents remain unreliable and error-prone in 2025, falling short of expectations for practical, trustworthy assistance.

August 3, 2025
5 min read
Gary Marcus

Despite hype, AI agents remain unreliable and error-prone in 2025, falling short of expectations for practical, trustworthy assistance.

AI agents are envisioned to actively manage our lives and businesses, performing tasks a human assistant might, from shopping and booking travel to managing finances and running software systems. Major tech players like Google, OpenAI, and Anthropic announced their first AI agents were imminent towards the end of 2024, with predictions that 2025 would see AI performing at a PhD student or early professional level, even joining the workforce and impacting company output. However, reality has fallen short of this hype. Despite major companies introducing AI agents, they remain largely unreliable beyond limited tasks. Google's Astra is in beta with restricted access, and OpenAI's ChatGPT agent, while promising, is still in its early stages and prone to errors, particularly concerning data security. The "demo to reality" gap persists, with some agent tasks experiencing failure rates as high as 70%. Flaws such as hallucinations and a reliance on mimicry rather than deep understanding contribute to these issues, especially in multi-step tasks. The author predicts that LLMs alone will not provide a robust and trustworthy foundation for AI agents. The current LLM-centric approach, despite massive investment, has not yielded dependable agents for complex tasks like calendar or financial management. Without the integration of neurosymbolic AI and rich world models, which are currently underfunded, agents will continue to struggle. The prevailing venture capital focus on quick returns over fundamental exploration may hinder the development of truly robust AI agents, suggesting that sensitive tasks should not yet be entrusted to them.

Frequently Asked Questions (FAQ)

AI Agent Capabilities and Limitations

Q: What are AI agents supposed to do? A: AI agents are intended to act on our behalf, actively managing aspects of our lives and businesses. This can include tasks like shopping, booking travel, organizing schedules, summarizing information, tracking finances, managing databases, or running software systems – essentially, performing any cognitive task a human assistant could do. Q: Have AI agents lived up to the initial hype? A: No, the reality of AI agents has so far been less impressive than the initial hype suggested. While major companies have introduced them, they generally remain unreliable for anything beyond limited, narrow tasks. Q: What are the main challenges with current AI agents? A: Current AI agents often suffer from unreliability, prone to errors, and have persistent issues with hallucinations (confidently generating false information). Their reliance on mimicking language patterns without deep understanding leads to mistakes, particularly in multi-step tasks. Cybersecurity and data security are also major concerns, with some agents being vulnerable to attacks. Q: What is the "demo to reality" gap in AI agents? A: This refers to the discrepancy between the impressive demonstrations of AI agent capabilities and their actual performance in real-world applications. This gap is acknowledged to persist for several years. Q: What is needed for AI agents to become more robust and trustworthy? A: The article suggests that LLMs alone are insufficient. Integrating neurosymbolic AI and rich world models are proposed as necessary approaches for AI agents to become more dependable for tasks like managing calendars or finances.

Future of AI Agents

Q: Will AI agents disappear? A: The article does not expect AI agents to disappear; rather, it anticipates they could eventually become invaluable time-savers. Q: What is the prediction for the future of AI agent development? A: The author doubts that LLMs alone will be sufficient and believes that integrating neurosymbolic AI and world models is crucial for developing robust and trustworthy AI agents. Current heavy investment in LLM-centric AI is seen as insufficient to produce dependable agents.

Crypto Market AI's Take

The article highlights a common sentiment in the AI development landscape: the gap between ambitious predictions and current, often unfulfilled, realities. This mirrors trends seen in the cryptocurrency space, where early adoption of new technologies often outpaces their practical, reliable implementation. Just as AI agents are grappling with "demo to reality" gaps and the complexities of real-world application, the cryptocurrency market is constantly evolving with new innovations, from advanced trading bots to decentralized finance (DeFi) protocols. At Crypto Market AI, we focus on navigating these complexities by providing robust tools and insights. Our platform offers AI-driven solutions designed to enhance cryptocurrency trading, aiming to bridge the gap between cutting-edge technology and practical application. We understand the challenges of reliability and security in emerging tech, which is why our approach emphasizes AI agents that are developed with a strong focus on data-driven accuracy and demonstrable performance.

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Source: Originally published at garymarcus.substack.com on August 3, 2025.