Beyond the Hype: What it Really Takes to Make AI Agents Work by NFX About 18 months ago, we started getting our first “AI agent” pitches. It was clear this had huge potential. But now we’re seeing the full map in even more clarity. Quick a recap: We see AI Agents turning labor into software –– a market size in the trillions. Since our first essay on this, we’ve worked with amazing companies in this space and want to do more of it. But if you’re following this space as closely as we are, you probably have noticed something. Progress and adoption are out of sync. On one hand, there is rapid technological progress. Just recently, “tool use” (operator, CU, gemini 2.0) and improved “reasoning” (o3, R1, 3.7 Sonnet) […]
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