Summary
What this article covers in 30 seconds
- AI agents are not new: software agents date back to the 1950s, and AI has long been used inside them, from Clippy in 1996 to Alexa Skills in 2015.
- In an agentic system, the Client parses, reasons and orchestrates, while AI Agents act as Servers that register skills and respond via protocols such as MCP.
- If five chained LLM steps are each 90% accurate, there is a 41% chance the final answer is wrong; with ten agents, two in three answers are wrong.
- Predictive AI alone returns an answer with a probability score, letting systems apply confidence thresholds and an ‘I don’t know’ opt-out.
- MIT and McKinsey surveys show only around 10% of Generative AI projects leave pilot, and only about 5% deliver a return on investment.
Recordsure’s CTO, Kit Ruparel, has been a long-standing advocate of selecting appropriate AI for the job in hand: Predictive AI for uncovering and interpreting content, and Generative AI for creating new content.
As AI Agent technologies ride the crest of the hype wave, Kit fears that the ease of entry into Agentic AI is pushing companies into not looking closely enough at the AI and other methods being used underneath those agentic covers. This article seeks to demystify this ‘new’ technology and to help clarify how it is most appropriately developed and used.
The big secret
Shhh… AI Agents are not new.
Software Agents – ‘autonomous’ units of software dedicated to a purpose, but that react and respond to the requests of users or other programs – were first conceptualised in the 1950s, and became mainstream in the 80s with software patterns such as distributed systems and microservice architectures. Whilst such program modules were designed to perform tasks autonomously, they were typically based on predefined rules (“code”) – so they were Software Agents rather than AI Agents… unless engineers put AI inside them.
AI, the fashionable moniker that mostly covers machine learning technologies that can also trace their roots back to the 1950s, has increasingly been used inside those agentic software modules. This suggests that there is a very good chance you’ve been using applications that make use of AI Agents for many years.
Way back in 1996, when you sat down in front of Microsoft Word to type up your grandmother’s spaghetti carbonara recipe and Clippy appeared, offering to help you prepare your ‘formal business letter’, you began your love-or-loathe relationship with an AI Agent.
Then, in 2015, when Amazon launched the Alexa Skills Kit, so you could ask the Echo in your kitchen how to make Boeuf Bourguignon or to play Capital FM, they effectively released an Agentic AI framework. It allowed third-party developers to build Skills (Agents) that would register their capabilities with your Echo, which would parse your request and route it to the Recipe or Radio skill that seemed most appropriate.
AI has obviously evolved over the years, as has the implied meaning of the term. Today’s hype exists because the Generative AI (or GenAI) community has co-opted the Agentic AI terms to mean ‘an end-to-end application ecosystem comprising Generative LLMs (Large Language Models) everywhere’ – and the confusion this has caused is not necessarily a good thing.
That’s not to say that GenAI hasn’t brought a lot of new toys to the Agentic playground, but let’s come back to that later.
The secret agent quiz night
The induction event at your new secret agent job is a quiz night. You’ve been selected as a team captain, whilst Mo, Sally and Tabby have joined your team.
Of course, the recruitment process was all very secretive, so you don’t know any of your team from Adam.
There’s not much time for introductions, but as the quizmaster gives his microphone the one-two one-twos, Mo quickly tells you his specialist subject is music, Sally that she’s a real soccer fan, and Tabby that she’s a tech freak.
The first question is about the pre-game eating habits of some Arsenal player. You’re not sporty enough to have a clue what the answer might be, but you at least know that Arsenal is a UK football team, so you defer to Soccer Sally – and she nails it. First point in the bag, and everyone happily takes a deep chug of their beer.
In the agentic technology world, you’ve just played the roles of a ‘Parser’, interpreting the question; a ‘Reasoner’, deciding that you couldn’t answer the question directly based on your own limited knowledge but that another might; and an ‘Orchestrator’, deferring the question to one of your agents – Sally, because she ‘registered her skill’ with you concerning UK football knowledge. You asked Sally the question using a common ‘communications contract’ between you (the English language), taking her response via the same contracted language. Then, finally, your ‘Reasoning’ decided to trust her response based on your ‘confidence’ in it, rather than simply answering “we don’t know” or making up a different answer yourself.
Question two arrives and asks about the naming origins of the UK electronic band ‘808 State’. You’re far too young to have a scooby, but hearing the word ‘band’, you figure this must be one for Music Mo.
Mo thinks about it, then comes back with: “808 is the US police penal code for ‘disturbing the peace’, and social disruption was all the music rage back in the 80s. It must be the answer.”
This makes sense to you, but you also heard the word ‘electronic’ in the question, so you decide to give Tech Tabitha a shot too. She comes back with: “I think there was a popular electronic drum machine in the 80s called the Roland TR-808 – I think maybe that was it?”
Now you’ve got two options on the table. But the question was about a band called ‘808 State’, not ‘TR-808 State’; Mohammed registered himself as the music expert and this question seems to be about music; and he seemed more confident in his answer than Timid Tabby. So you again use your Reasoning capabilities and unfortunately elect to go with ‘disturbing the peace’. The next sip of beer is much more reserved.
The Agentic Client, Parser, Reasoner and Orchestrator
There are various technological elements to an Agentic framework and, depending on what you read, these can vary and are often described in quite complex ways. To keep things simple here, the key components that matter most are described, hopefully, in terms the non-technorati can understand.
Some form of request or requirement needs to be fulfilled, so, as with most software applications, there is a ‘Client’ – something that makes a request, usually on behalf of a human user. Today’s most well-known Agentic Clients are ChatGPT for consumers and Microsoft Copilot for enterprise users. However, as you will have experienced, every CRM, communications tool, website and other piece of software out there is getting into the Agentic Client game – something that is about as welcome as Microsoft Clippy for many users.
Then something needs to interpret that request (the ‘Parser’). Once the request is ‘understood’, it needs to be responded to directly or broken down into sub-tasks (by a ‘Reasoner’), before each sub-task is routed (by an ‘Orchestrator’) to one or more Agents.
Technically, these can be four separate technological components. In reality, however, the Parser, Reasoner and Orchestrator are today an integrated part of the Client – the fourth role that you were performing as the team captain at the quiz night.
The Agentic Server
The Client-Server paradigm is the most prevalent software pattern in the industry, so Agentic AI frameworks refer to the AI Agents as Servers – as they are responding to the requests of the Clients.
As you were the Agentic Client on quiz night, Mo, Sally and Tabby were the Agentic Servers.
Agentic Servers need to tell the Client what they [believe they] are capable of – described in the quiz night example as ‘registering a skill’ – whilst the Client and Server need to be able to exchange requests and responses using a ‘communications contract’.
Before LLMs introduced themselves to the Agentic AI world, communications contracts between software components were very formal and very fragmented across the industry, with every vendor creating and publishing its own ‘API’ (Application Programming Interface).
Standards such as SOAP (the Simple Object Access Protocol), CORBA (the Common Object Request Broker Architecture) and OAS (the OpenAPI Specification) emerged to try to standardise, a little, how APIs operated across different software components and network architectures. But frankly, in most industries, we never really got our act together to create a single communications contract that would allow any piece of software to talk to any other.
The biggest thing that’s changed with the advent of LLMs is that software can now talk to other software using English (or many other human languages) as its communications protocol.
However, deciding what to say to each other was a bit of a free-for-all in the first year of the modern Agentic AI era. That was until Anthropic proposed and open-sourced the now widely adopted MCP (the Model Context Protocol), which provides a bit of groundwork for how to both register an agent skill and then communicate the follow-up request and response using English – essentially lending a bit of structure in the same way SOAP did for API services back in 1998.
Then, whilst MCP is focused on Servers registering and communicating with Clients, it’s looking quite likely that it will be supplemented by the similar-but-different A2A (Agent-to-Agent) protocol from Google, intended to semi-standardise how the various Agentic Servers can talk to other Servers.
English being at the core of new Client-Server-Server communications has truly opened up the opportunity for any software to talk to any other software, whether or not this Agentic system otherwise uses AI. However, it also means that rather than the dependable communications contracts we used to have in APIs, we are also inheriting the biggest problem with LLMs: their propensity to be unknowingly, but confidently, wrong.
Amid the Agentic hype, the Generative AI community would also have you believe that all Server Agents should be built entirely from LLMs – especially given they need to Parse, Reason and potentially Orchestrate other Agents to provide a response. Yet again, this falsehood can increase the likelihood of them, and therefore the Agentic system as a whole, being confidently wrong.
Being confidently wrong
By now, everyone reading this blog post will have experienced both correct and incorrect AI summaries at the top of their Google search results, leaving you, the end user, to use your own judgement as to whether to believe or ignore them.
Kit’s previous blog articles have drilled into why LLMs are so often wrong, whilst the Hugging Face Leaderboards demonstrate there is still a long way to go before LLMs provide trustworthy answers or reasoning.
Those who have heard Kit Ruparel speak on AI also know that, as important as providing a correct result is, it is even more important that an AI system provides a probability score showing how confident it believes it is in its answer’s correctness – and that the lack of such a score is a fundamental weakness of Generative AI LLMs. They don’t provide an answer along with a confidence score, instead providing only a sequence of statistically likely text.
Imagine how useful it would be if that AI answer at the top of your Google search results was accompanied by a single additional statement: “This AI generated answer is likely 94% correct.” You could then decide whether that 94% result is within your acceptable risk tolerance, based on your research use case, alongside your historic knowledge of how reliable Google has been at formulating that percentage probability of correctness.
Today, only Predictive AI (or ‘traditional’ machine learning, if you prefer) provides both an answer and a probability score whose trustworthiness you can learn and bake into your application’s risk tolerance threshold.
Playground whispers
Returning to the agent quiz night example above, let’s look at everywhere an LLM might have been used in today’s Agentic AI world: for each of the agents to register their skills; to parse and reason over a quiz question; to decide which agent(s) to route the question to; for one or more agents to parse and reason over the question and provide an answer; and for the client to reason over the answers provided and formulate an ultimate response.
That’s five different uses of LLMs, and if each use of an LLM only has a 90% chance of being accurate, then mathematically, there is a 41% chance that the final answer will be incorrect.
If a more complex agentic mesh were in play, with 10 agents involved, each with a 90% accuracy level, then, statistically, two out of three final answers will be wrong. Confidently wrong.
Using LLMs for every element of the Agentic AI ecosystem is akin to the old ‘Whispers’ game that you may have enjoyed in the playground as children – perhaps known by a less politically correct moniker at the time or, if you were in the USA, known as the ‘Telephone Game’. According to the rules of that game, each child in the chain had to pass on what they thought they heard. A more sensible outcome might have been achieved if each child had the option of saying “I’m 94% confident that I heard ‘Grandma wears blue shoes’”, and each next child in the chain then had the option of taking this information and potentially reasoning towards an “I don’t know” answer. But that would have been far less fun.
Successful Agentic AI in the enterprise
Thanks to Generative LLMs, Agentic AI is coming for your business, so it is your organisation’s responsibility to ensure that the implementation is both safe and makes your employees more productive.
Productivity is obviously the purpose of these technologies. However, recent company surveys by respected institutions such as MIT and McKinsey demonstrate that, today, only around 10% of Generative AI projects make it out of pilot purgatory, with only 5% or so actually providing a return on investment.
Users instead find their time lost either to the ‘AI Verification Tax’ – spending more time checking and correcting those confidently wrong results than the time initially saved by having answers or content created for them – or to adding the meat to the ‘AI Workslop’, defined by Harvard as “AI generated content that masquerades as good work, but lacks the substance to meaningfully advance a given task.”
This will change over time as AI scientists and developers build increasingly performant tools, so early adopters really need to start setting out their stalls for safe and responsible Agentic AI.
Such a process must start with careful selection of agents and other AI components. The Agentic AI ecosystem will only be as good as the sum of each of its parts, each potentially having been built by a different development team, each of whom must be trusted to have ‘done the right thing’.
Where componentry is developed in house, try to avoid LLMs unless text generation is truly required – most especially where an organisation owns both sides of the Client-Server or Server-Server equation. If you can define the communication contract between your services, then a restrictive and purposeful API is going to guarantee reliable consistency in a way that the ambiguities of natural language never will.
Then, within agentic services themselves, build or prefer to use components that minimise technologies related to Generative AI when either Predictive AI, or even more straightforward procedural coding, will suffice.
The Agentic AI ecosystem will only be as good as the sum of each of its parts, each potentially having been built by a different development team, each of whom must be trusted to have ‘done the right thing’.
Importantly, ensure each component in the framework is designed to opt out – to provide that “I don’t know” answer whenever there is uncertainty. For AI services using traditional machine learning, make sure you are in control of the confidence tolerance thresholds for the AI returning an answer, taking an action or providing the opt-out.
Next, consider security, guardrails and traceability. This is where most organisations must surely turn to Microsoft, as Copilot and the Office suite will most commonly be the entry-point Client for business users, and Office documents will often be the desired output format.
More pertinently, organisations using Microsoft Azure will turn to the security of the Azure Agent ID technologies, Microsoft’s Agentic monitoring and AI Content Safety guardrails, and the Purview AI data governance capabilities that Microsoft is rapidly evolving. Agentic AI components developed outside the Azure ecosystem will sensibly be turned down by most information security teams.
Finally, ensure your Agentic AI system has an appropriate amount of human-in-the-loop – both for consumption, with users well trained in responsible use and best practice, and for monitoring, quality control and continuous improvement throughout the AI componentry mesh.
Recordsure technology and agents
Recordsure develops and consumes AI responsibly, with our products proven to improve productivity, yet with an appropriate amount of human-in-the-loop application to reduce rather than increase operational and conduct risk.
Recordsure has used software agents (microservices) since our first product developments over a decade ago, with many of these agents providing or consuming AI capabilities – initially predictive machine learning technologies and, more recently, carefully designed Generative AI LLM usage where text actually needs to be generated.
Traditional, dependable APIs are used wherever we own both halves of a communications contract between services, or where trusted suppliers are in the mix. Every AI element is designed with configurable and well-tested AI confidence thresholds, guardrails for LLM human input and responses, and monitoring and improvement methods throughout.
As our clients look to integrate our products within their own Agentic ecosystems, we are working with the various emerging Microsoft AI and other Azure services to ensure that InfoSec teams can be confident of a natural fit into the security and supervision frameworks that will increasingly become part of their daily Agentic AI operations.
All images are 100% AI generated. All words are 100% human. Most mistakes are the proof-readers’.
Frequently asked questions
No. Software agents were first conceptualised in the 1950s and became mainstream in the 80s, and AI has long been used inside them – from Microsoft’s Clippy in 1996 to Amazon’s Alexa Skills Kit in 2015.
A Client makes requests on behalf of a user and today also acts as Parser, Reasoner and Orchestrator. AI Agents act as Servers, registering their skills and exchanging requests and responses through a communications contract such as MCP.
Errors compound across each LLM step: five steps that are each 90% accurate give a 41% chance of an incorrect final answer. Generative LLMs also provide no confidence score to flag that uncertainty.
Select components carefully, avoid LLMs unless text generation is truly needed, design every component to opt out with ‘I don’t know’, apply security, guardrails and traceability, and keep an appropriate human-in-the-loop.
We have used software agents (microservices) since our first product developments over a decade ago. We use dependable APIs where we own both sides of a contract, build configurable confidence thresholds and guardrails into every AI element, and use Generative AI only where text actually needs to be generated.