Blog Archive

Friday, December 26, 2025

From Generative AI to Agentic AI: Embedding, Agentic Common Sense, Negotiation Optimization, and Challenges: Ideas from Amazon’s Michael Kearns and Colleagues


      Generative AI, including popular formats like ChatGPT, Copilot, and other chatbots, is based on large language models (LLMs). Agentic AI uses LLMs as a starting point to autonomously access and act on internal and external resources such as databases, financial accounts and transactions, travel services, etc.

     Wikipedia defines AI agents as:

“… a class of intelligent agents distinguished by their ability to operate autonomously in complex environments. Agentic AI tools prioritize decision-making over content creation and do not require human prompts or continuous oversight.”

     Aaron Holmes, in an article for The Information, described seven kinds of AI agents:

“…business-task agents, for acting within enterprise software; conversational agents, which act as chatbots for customer support; research agents, for querying and analyzing information (such as OpenAI Deep Research); analytics agents, for analyzing data to create reports; software developer or coding agents (such as Cursor); domain-specific agents, which include specific subject matter knowledge; and web browser agents (such as OpenAI Operator).”




     Agentic AI is given the capacity to act independently of user supervision. Several protocols have been developed to facilitate agent/user interactions and agent-to-agent interactions

     Amazon scholar Michael Kearns, who is also a professor of computer and information science at the University of Pennsylvania, answers three questions for The Guardian:

1. What will be some of the challenges with entrusting agentic AI with consequential actions like accessing sensitive data, or autonomously making financial transactions?

     One challenge he notes is that LLMs don’t work with words, sentences, and images but rather with embeddings, which are abstract representations of words, sentences, and images.

Embeddings preserve the meaning of content at the expense of losing some details, like the exact sequence of every word in a long novel. Thus, when content or context are shared across agentic AI systems, drawing precise boundaries around sensitive or private information like financial data will require careful handling.”

2. Given the fact that so much of the activity in large enterprises and projects happens informally between humans, how will we transition such interactions to an agentic world?

     He answers that specifying and enforcing what might be called “agentic common sense” will be required. He suggests that it will take time and training for agentic AI to be able to distinguish and emulate common human informal behaviors, those common-sense behaviors that humans do.

“…users and enterprises should again be explicit in the constraints they want agentic AI to obey and ask the AI to check with humans in the case of any ambiguity.”

3. Sometimes we will want agentic AI to not just execute transactions on our behalf, but to negotiate the best possible terms. Where can we look for guidance as to how this might play out?

     He notes that we have already done this with behavioral economics and game theory.

While generative AI seems to have arrived instantaneously and matured rapidly in just the last few years, it in fact is firmly grounded in decades of foundational science in areas such as machine learning and neural networks. With agentic AI, we are in genuinely new territory, with few established scientific and engineering principles to set expectations. The challenges discussed here – privacy boundaries in embedding space, agentic common sense and agent-to-agent negotiation – are a few of the scientific hurdles that must be sorted out as AI becomes more autonomous. In the meanwhile, leaders should encourage their organizations to be explicit about the constraints they want agentic AI to obey and try to articulate their enterprise common-sense policies.”

     Turning AI into autonomous agents comes with potential advantages as well as potential pitfalls that must be overcome.

 

Building Agentic AI Trust and Transparency

     Clarke Rodgers of Amazon Web Services notes that agentic AI could potentially “mishandle sensitive data or make high-stakes decisions without human input,” which could be problematic. He suggests there is a need to redefine the intersection of autonomy, transparency, and security. This involves putting strict boundaries on agentic AI’s decision-making authority.

A common approach is embedding "human-in-the-loop" or "human-on-the-loop" frameworks, which make sure that autonomous agents are either supervised or escalated to human reviewers for critical decisions.”

     An example he gives is allowing agentic AI to flag suspicious account activity, but it requires humans to review and make decisions based on that flagging. He notes that there is a need for clear explanations of AI agents' capabilities and limitations. This aids what he calls transparency as a strategy.

     Regarding security, he mentions the importance of secure-by-design architectures.

This includes limiting access to sensitive systems, real-time monitoring of AI behavior and applying zero-trust principles that treat AI agents as potentially risky actors until proven safe.”

     This often involves probing agents for weaknesses just as an adversary might do. Thus, these simulations help to prepare agentic AI for such issues.

     Aside from risk mitigation, there is a need to build trust in agentic AI systems among users of those systems. One way to do that is by:

“…implementing secure feedback loops where user input helps fine-tune agent behavior through real-time satisfaction ratings, sentiment analysis and compliance-filtered interactions, organizations are enhancing customer experience while maintaining strict security controls and regulatory compliance.”

 

Agentic AI Expands AI’s Capabilities: Kearns Explains

     AI agents are also designed to learn from all their interactions with humans and with other agents. The agent often acts as a capable human assistant, which frees up time for the human(s) it works for. These capabilities are not only in language but also in coding, mathematical reasoning, optimization, workflow planning, and many other tasks. He notes that modern technology is often human-centric, but agentic AI utilizes what are called ‘native languages’, such as embedding or embedding space.

Embeddings are an abstraction that provides great power and generality, in the form of the ability to represent not the literal original content (like a long sequence of words) but something closer to its underlying meaning. The price for this abstraction is loss of detail and information.”

     That loss of detail needs to be mitigated through further training. Agents interact with humans, content, and other agents, all of which help them continue to train and refine.

     One problem he brings up is that embedding ‘languages’ differs among companies and is often considered proprietary. It would be better, he says, if there were standardization. This would not need to be total, and some proprietary information could still be retained. He advocates for a common ‘base embedding’ that would be beneficial.

     Context can be thought of as the “working memory” of the LLM, and like humans’ working memory, it can be selective and imperfect. That working memory becomes crucial for agentic AI applications.

How will context and its limitations affect agentic AI? If embeddings are the language of LLMs, and context is the expression of an LLM’s working memory in that language, a crucial design decision in agent-agent interactions will be how much context to share. Sharing too little will handicap the functionality and efficiency of agentic dialogues; sharing too much will result in unnecessary complexity and potential privacy concerns (just as in human-to-human interactions).”

     Kearns explores agentic AI’s ability to find bargains and to bargain with other ideas like game theory and behavioral economics. Behavioral economics has shown that humans often act irrationally when making purchases and decisions. Thus, what one should do often does not sync with what one does. He gives an example of the ultimatum game in game theory. He suggests that LLMs already mimic such odd human economic behavior to some extent, and that will become more important as agentic bargaining becomes more common and we delegate more bargaining power to AI agents.




     Next, he comes back to the idea of agentic common sense, noting that AI has struggled with developing this common sense since its beginnings. The sheer information size of the internet and AI’s access to it has made developing a generic AI common sense successful. However, more needs to be done for it to develop common sense that is specific to us, what he calls subjective common sense. These are issues around trust and security.   

     He concludes that agentic AI is still very new to most users but is growing quickly, just like generative AI did.

The agentic-AI era is in its infancy, but we should not take that to mean we have a long and slow development and adoption period before us. We need only look at the trajectory of the underlying generative AI technology — from being almost entirely unknown outside of research circles as recently as early 2022 to now being arguably the single most important scientific innovation of the century so far. And indeed, there is already widespread use of what we might consider early agentic systems, such as the latest coding agents.”

Despite the speed with which generative AI has permeated industry and society at large, its scientific underpinnings go back many decades, arguably to the birth of AI but certainly no later than the development of neural-network theory and practice in the 1980s. Agentic AI — built on top of these generative foundations, but quite distinct in its ambitions and challenges — has no such deep scientific substrate on which to systematically build. It’s all quite fresh territory. I’ve tried to anticipate some of the more fundamental challenges here, and I’ve probably got half of them wrong.”




References:

 

The science of agentic AI: What leaders should know. Michael Kearns. Amazon scholar. The Guardian. October 27, 2025. The science of agentic AI: What leaders should know | Business briefs | The Guardian

Scientific frontiers of agentic AI. Michael Kearns. Amazon Science. September 11, 2025. Scientific frontiers of agentic AI - Amazon Science

The age of agentic AI: Building trust and transparency. Clarke Rodgers. The Guardian. September 19, 2025. The age of agentic AI | Business briefs | The Guardian

AI agent. Wikipedia. AI agent - Wikipedia

The Seven Kinds of AI Agents. Aaron Holmes. The Information. July 7, 2025. The Seven Kinds of AI Agents — The Information

 

No comments:

Post a Comment

     Indonesia, Malaysia, and Thailand, in that order, are the largest natural gas-producing countries in Southeast Asia. However, in Thai...