Your Future AI Agent

“What AI could be: A way to make everything we care about better.” — Marc Andreessen

In the next 20 years, there will be a future where you have a new member of the family, from the day you are born, to the day you die.

Enter the future of AI Agents.

From the day we are born, our personalized AI agent will begin collecting data on us. It will track our health and nutrition, monitor our sleep patterns, and ensure that we are meeting all of our developmental milestones. As we grow older, our AI agent will adapt to our changing needs and preferences. For example, as teenagers, our AI agent may help us navigate the complex world of social media and peer relationships. When we are students, our AI agent will create personalized learning for each of us suited to what we like and our individual learning styles. As adults, it may assist us in finding new jobs, providing recommendations for entertainment and leisure activities, and even helping us make important decisions about our lives.

Companies that are building AI Agents grapple with significant challenges that need addressing:

• Logical reasoning and execution aka hallucinations: Autonomous agents, while capable of decomposing tasks into multi-step processes, struggle with autonomous execution. They may find themselves caught in action loops or creating incorrect assumptions due to limited external feedback. Also, even though agents may grow to become increasingly complex and intuitive, they likely will struggle to ingest all of the verbal and non-verbal information humans consume.
• Compute Costs: The recursive structure of autonomous agents can lead to repetitive calls to the Language Learning Model (LLM), posing a challenge for cost efficiency, especially with in-house models.
• Learning: As of now, autonomous agents are typically one-time-use entities. They do not learn from their past attempts or mistakes, limiting their progress and adaptability. Many of the agents will start out as an agent for 1 specific task rather than something that collects data and follows you across various tasks and needs. This may prove problematic as many decisions are dependent on other pending decisions and a large information base structured across different portions of life (ex: social, family, professional, relationship, etc.)

We’ve already seen how startups & founders are reacting to the AI boom. There are dozens of companies that seem to be building similar products. The age-old question for many VCs is becoming more prevalent in this AI boom: which horse in this increasingly more competitive and crowded race is the right one? At Daydream Ventures, we believe that the path to market dominance for companies in the AI agents space revolves around two pivotal points:

• Data: In the new world of AI agents, the one who holds the data holds the power (not necessarily the most, but the right data). Companies with the most accurate and informative user data to enable their AI agents to learn, adapt, and assist more effectively will ultimately win. Companies that collect proprietary data that currently lies undiscovered (ex: not on the web) will build increasingly more powerful competitive advantages.
• Distribution: Mastery in go-to-market strategies is key. Not just building advanced AI agents, but effectively distributing them, reaching the right users at the right time, is crucial. We are going to see a world where there are dozens of companies building AI Agents for sales, healthcare, fitness, etc. But the ones who win will be ones that have great go-to market, branding, & distribution. Founders that realize unfair advantages where they can quickly distribute one to many and incorporate their agents into existing value chains will be able to scale expeditiously. Expect unicorns in this space to be comprised of teams that not only have top AI experts, but also top GTM experts as well.

The dawn of AI agents heralds a new age of companies — those that value better customer experiences powered by super-specific customer data and superior distribution. As we stand on the brink of this revolution, one thing is certain: AI agents will reshape our lives and redefine the corporate world. Buckle up, because we’re not just stepping into a new era of personalized assistance, but also a new era of business that will transform how companies function and flourish. Indeed, the future of AI agents isn’t just about new technology; it’s about reimagining our world.