Even a16z VCs say no one really knows what an AI agent is

Buzzwords like "AI agent" are overused in tech, leaving their true meaning unclear—even among experts. A16Z and its partners tried to define an AI agent during a podcast, describing it as a reasoning, multi-step LLM with dynamic decision-making capabilities, but acknowledged significant technical challenges, such as persistent memory and avoiding hallucinations. Despite these hurdles, companies are still hiring humans because current AI agents aren’t ready to fully replace them yet.