a16z Podcast What Is an AI Agent?
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May 22, 2025 
Guido Appenzeller, a General Partner at a16z, along with partners Matt Bornstein and Yoko Li, tackle the hot topic of AI agents. They discuss the varying definitions and complexities surrounding these agents, questioning if they are merely enhanced LLMs or something more. The conversation dives into how AI agents are reshaping workplace productivity and the intricate challenges of pricing and integrating them into existing workflows. Ultimately, they envision a future where AI agents are as essential as electricity, transforming our daily lives.
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Defining AI Agents
- An AI agent can be as simple as an LLM or a clever prompt over a knowledge base.
- At the extreme, a true agent resembles AGI, capable of independent, persistent learning and problem solving.
Spectrum of Agentic Behavior
- The term agent covers a spectrum from simple tool wrappers to autonomous problem solvers.
- Most current systems are early demos, far from the decade-scale work needed for true autonomous agents.
Agentic Behavior Characteristics
- Agentic behavior typically involves reasoning, planning, tool use, and iterative loops inside LLMs.
- Pure copilots with direct user interaction may not qualify as full agents due to lack of autonomous decision making.