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

AI Agents have, so far, mostly been a dud

AI agents promised to revolutionize tasks in 2025 but remain unreliable and limited, hindered by fundamental flaws in current LLM-based systems.

August 4, 2025
5 min read
Gary Marcus

AI agents promised to revolutionize tasks in 2025 but remain unreliable and limited, hindered by fundamental flaws in current LLM-based systems.

AI agents are envisioned to go beyond simply answering queries; they are meant to actively manage aspects of our lives and businesses. This includes tasks such as shopping, booking travel, organizing schedules, summarizing news, tracking finances, maintaining databases, and even managing software systems. The ultimate goal is for these agents to perform any cognitive task a human could be asked to do. Major tech companies like Google, OpenAI, and Anthropic have announced their first AI agents are imminent, with predictions that by 2025, AI could perform at the level of a PhD student or early professional. OpenAI's CEO, Sam Altman, anticipates AI agents entering the workforce and significantly altering company outputs, while Google's Project Astra aims to create a universal AI assistant. Despite the optimism surrounding these developments, the reality of AI agent functionality is still in its nascent stages. As of mid-2025, many AI agents, while announced by major players, remain unreliable beyond narrow use cases. Google's Astra is in a beta phase with a waitlist, and OpenAI's ChatGPT agent, despite its promising capabilities like proactive tool use and advanced reasoning, is still prone to errors. This has led to user disappointment, with early hyped agents like Manus failing to meet expectations. The accumulation of technical debt through repetitive and hard-to-debug code is also a concern, as noted by MIT Professor Armando Solar-Lezama. Benchmarks have indicated compounding errors in basic tasks like account balance tracking, and the persistent issue of AI hallucination continues to plague these agents. A significant "demo to reality" gap is apparent, with high failure rates reported on certain tasks, and even enthusiastic influencers struggle to find consistent practical applications. Security remains a paramount concern, with current agents' superficial understanding making them vulnerable to cyberattacks. Even seemingly secure systems have shown compromise rates, posing a devastating risk for critical systems. The underlying issue lies in the reliance of current agents on Large Language Models (LLMs), which excel at mimicry but lack deep comprehension. This leads to errors and hallucinations, especially in multi-step tasks. While AI agents have the potential to become enormous time-savers and generate significant value, relying solely on LLMs is unlikely to provide the necessary reliability. Advances in neurosymbolic AI and rich world models, concepts advocated for years, are crucial for the reliable functioning of agents. The current exclusive investment in LLMs is seen by some as a costly mistake, failing to address fundamental AI challenges despite massive financial backing. Meanwhile, alternative approaches like neurosymbolic AI remain severely underfunded. Ultimately, until more robust and trustworthy AI foundations are established, current AI agents should not be trusted with sensitive tasks.

Frequently Asked Questions (FAQ)

What are AI agents and what can they do?

AI agents are designed to perform tasks on your behalf, unlike chatbots that only answer queries. They can actively manage your life and business by performing tasks such as shopping, booking travel, organizing calendars, summarizing news, tracking finances, maintaining databases, and managing software systems. Essentially, they aim to perform any cognitive task that a human could do.

Have major tech companies released functional AI agents?

Yes, major companies like Google, OpenAI, and Anthropic have announced the imminent release of their first AI agents. However, in practice, many are still in early stages of development and are not reliably functional beyond limited scenarios, often prone to errors.

What are the main challenges with current AI agents?

Current AI agents face several challenges, including unreliability beyond narrow use cases, a significant "demo to reality" gap, the accumulation of technical debt through buggy code, persistent hallucination issues (fabricating information or making reasoning errors), and a high percentage of task failures in benchmarks.

What are the security concerns associated with AI agents?

Security is a major concern due to the agents' superficial understanding, making them vulnerable to cyberattacks. Even seemingly secure systems have demonstrated compromise rates, posing a significant risk, especially for critical applications.

What is the underlying reason for the current limitations of AI agents?

The primary reason for the current limitations is the reliance on Large Language Models (LLMs). While LLMs are adept at mimicking human language, they lack deep comprehension of tasks, leading to errors, hallucinations, and unreliability, particularly in multi-step processes.

What is needed for more reliable AI agents in the future?

Future reliable AI agents will likely require more than just LLMs. Deeply integrated neurosymbolic AI and rich world models are considered essential for reliable functionality, moving beyond simple mimicry to true understanding and robust execution of complex tasks.

Crypto Market AI's Take

The current landscape of AI agents mirrors the early days of cryptocurrency – immense potential coupled with significant teething problems. Just as early cryptocurrencies struggled with scalability and user experience, today's AI agents are grappling with reliability, security, and the gap between impressive demos and real-world utility. At Crypto Market AI, we are keenly observing these developments. Our focus is on leveraging AI for tangible benefits in the crypto space, such as AI-driven market analysis and sophisticated AI trading bots. While the promise of fully autonomous AI agents is exciting, our current approach emphasizes AI as a powerful tool to augment human decision-making and strategy in the volatile crypto markets, rather than a complete replacement for human oversight. We believe in a pragmatic, phased approach to AI adoption, ensuring robust security and compliance at every step.

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Source: Originally published at Gary Marcus Substack on August 3, 2025.