World's Fair 2025
Building Applications with AI Agents — Michael Albada, Microsoft
Overview
This talk explores the development of AI agents, highlighting both their promise and the significant obstacles encountered in production. It defines agents as entities capable of reasoning, acting, communicating, and adapting. The presentation emphasizes that agency exists on a spectrum and should be a tool to enhance effectiveness, not a goal in itself, cautioning against systems with low efficacy despite high agency.
Who should watch
- AI engineers and builders working with or considering AI agents.
- Product Managers evaluating the potential and challenges of agentic systems.
- Developers seeking to understand common pitfalls and best practices in agent development.
- Those interested in tool use, orchestration patterns, and evaluation strategies for AI agents.
Key takeaways
- The field of agentic development is experiencing rapid growth, with a significant increase in companies describing themselves as agentic, yet building robust agents remains a complex challenge.
- Tool use is a powerful concept where foundation models can output function calls, enabling agents to invoke external functionalities, but requires careful discernment regarding which tools to expose and how.
- Exposing too many tools to an agent simultaneously can decrease accuracy due to semantic collision; it's better to group tools logically and keep their scope specific.
- Standard workflow patterns like single chains or trees are recommended for simplicity, cost-effectiveness, and reliability, with more agentic patterns considered when chains become overly complex.
- Fixed business logic should be maintained externally to the model, with tools used to update states, ensuring deterministic actions only occur when specific conditions are met.
- Moving to multi-agent systems can help manage complexity by breaking down large tool sets into semantically similar groups handled by individual agents coordinated by a central router.
- Investing heavily in rigorous evaluation is crucial, as it's difficult to answer key design questions (e.g., number of agents, tools, models, memory types) without high-quality evaluation sets.
- Observability through detailed logging and tracing is essential for understanding agent behavior at scale and identifying failure modes, with tools like OpenTelemetry recommended.
Notable quotes
*It's really easy to get to your 70% or 80% accuracy. But there are so many hyperparameters to choose.*
*Productivity isn't everything but in the long run it is almost everything.*
Unofficial community note. Prefer the recording for nuance.