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a16z37 min

What Is an AI Agent?

Guido Appenzeller, Matt Bornstein, Yoko Li

Conference Presentation, Panel, Fireside Chat, Interview

Industry experts define AI agents as multi-step systems capable of dynamic reasoning and tool usage, distinguishing them from simple prompt wrappers despite widespread marketing inflation. Current market adoption is constrained by data silos, security gaps in authentication, and the technical difficulty of enabling non-deterministic models to interact reliably with fragmented user environments. Ultimately, the field is shifting toward specialized workflows and multimodal capabilities, with agents expected to become invisible infrastructure within two to five years rather than standalone products.