Posted by Hitul Mistry
/17 Feb 25
Tagged under: #AI Agents,#AI,#AI Models
When ChatGPT was launched on November 30, 2022, it revolutionized AI by enhancing computers' ability to understand and communicate in human language.
Every AI application relies on an AI model to perform its tasks. Think of AI models as interns in a company initially, they make mistakes, but with guidance from peers and mentors, they improve over time. As interns gain skills, experience, and knowledge, they learn from their mistakes and evolve into responsible professionals. Similarly, AI models learn from data, user feedback, and various experiences, gradually enhancing their performance and accuracy.
Since the launch of ChatGPT, AI models have evolved significantly. OpenAI's GPT-4o and Google's Gemini 2.0 now demonstrate reasoning abilities comparable to a PhD graduate. Meanwhile, Meta and Mistral have developed powerful open-source models with impressive reasoning capabilities. DeepSeek R1, another open-source model, has even shown the potential to outperform some of OpenAI's offerings.
Moore's Law is the observation that the number of transistors on an integrated circuit will double every two years with minimal rise in cost. In the case of AI models, we are seeing breakthroughs every 6 months.
AI models are getting bigger, more accurate and more cost-effective.
As AI models continue to evolve, why not leverage them to handle our tasks? AI agents, like human agents, excel in specific areas of expertise.
Consider a company employing a market research analyst responsible for analyzing the industry and developing business reports on opportunities and risks. As a human, the analyst conducts thorough research by gathering data from multiple sources such as Gartner, research papers, industry news, websites, videos, and podcasts. After compiling relevant insights, they create a comprehensive business report covering opportunities, risks, case studies, and geographical market details.
AI Agents are intelligent computer applications that perform tasks without human assistance towards a goal.
AI agents are software entities capable of making autonomous decisions and performing tasks with minimal or no human intervention.
For example, an AI agent acting as a market research analyst can follow a structured workflow, executing each step sequentially. It can conduct keyword-based searches on search engines, gather industry reports, explore blogs, listen to podcasts, analyze YouTube videos, and finally compile a comprehensive report by integrating insights from all these sources.
AI Agent environment refers to everything an AI agent interacts with while performing its tasks. It consists of the external conditions, data sources, tools, and constraints that influence the agent’s decision-making and actions. The environment provides inputs to the AI agent and receives outputs in response to the agent’s actions.
These agents use AI Models to interact with their environment, learn from data, and optimize their performance over time.
In the above market research analyst agent example, search engines, Industry Reports & Data Sources, YouTube, podcasts, blogs and articles are the environment.
Another example can be, Imagine you need statistical data about the insurance market but don’t have the time to conduct research and organize the information into a table. This is where AI agents come in. Instead of manually searching for data, you can simply enter a query like, "I need statistics on the insurance market." The AI agent will then research relevant information from various sources, summarise the key insights, and present the data in a structured format—saving you time and effort.
Every process can be re-imagined with AI agents.
AI agents are revolutionizing multiple industries:
AI models learn from historical data, which may contain inherent biases.
If training data is biased (e.g., gender, race, socioeconomic background), AI can reinforce and amplify discrimination.
Example: AI-powered recruitment tools may unintentionally favor male candidates if trained on historical hiring patterns where men were preferred.
Can lead to unfair treatment in hiring, banking, law enforcement, and healthcare.
AI decisions may be difficult to audit, making bias hard to detect and correct.
Mitigation: Use diverse and unbiased training data, conduct regular audits, and implement fairness guidelines.
Reinforcement Learning (RL) is gaining traction as a powerful approach, with models like Deepseek R1 built on this framework. RL works like teaching a child through trial and error an AI experiments with different actions, receives rewards for good choices and penalties for bad ones, and gradually improves its decision-making over time.
AI-based fraud detection can be bypassed by adversarial attacks.
AI-powered deepfakes can spread misinformation, fraud, or identity theft.
Mitigation: Use robust cybersecurity measures, AI model validation techniques, and adversarial testing.
AI agents require vast amounts of data, raising concerns over privacy and unauthorized data usage.
Companies using AI must comply with regulations like GDPR, CCPA, and HIPAA to protect user data.
Example: AI-based voice assistants (like Alexa or Siri) continuously listening to conversations can lead to privacy breaches.
Unauthorized access to sensitive information (e.g., financial records, medical data).
User trust declines when AI misuses personal data.
Mitigation: To secure Large Language Models (LLMs) from adversarial attacks, here are key prevention strategies for each type of hacking technique:
Guardrails are emerging as a powerful solution to mitigate these risks. There are open source guardrails like NeMo Guardrails (by NVIDIA), TruLens, Meta AI’s Llama Guardrails, AWS Bedrock Guardrails and many more. Guardrails are security and compliance frameworks designed to protect AI models from misuse, adversarial attacks, and unsafe outputs. They ensure that AI operates within ethical, legal, and security boundaries.
AI agents can face moral and ethical challenges, especially in critical areas like autonomous vehicles, healthcare, and military applications.
Example: In a self-driving car accident scenario, should the AI prioritize the passenger’s life or pedestrians' lives?
Raises legal and ethical debates about AI’s role in life-and-death situations.
Lack of a universal ethical framework for AI decision-making.
Mitigation: Establish global AI ethics standards, and ensure human oversight in AI-driven decisions.
Example: A thermostat turns on heating if the temperature drops below 18°C.
Example: A robotic vacuum cleaner maps a room to clean efficiently.
Sam Altman, CEO of OpenAI (ChatGPT) said “AI Agents Set to Join the Workforce by 2025”
Sundar Pichai, CEO of Alphabet, emphasized AI's profound impact, stating, "AI is the biggest technological shift of our lifetimes."
Elon Musk, CEO of Tesla and SpaceX said "The clock is ticking—AI agents are not just a trend; they are the future of efficiency and innovation."
Satya Nadella, CEO of Microsoft said “AI agents will become the primary way we interact with computers in the future. They will be able to understand our needs and preferences, and proactively help us with tasks and decision-making."
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