The Truth About AI Agents

By Steve Robinson, AI Assisted Summary of Section Post interview of Lutra AI co-founder and CEO Jiquan Ngiam

You may have heard people say AI “agents” can magically handle complicated business tasks independently. Today’s AI agents aren’t quite there yet, but they can be a real opportunity for your business.

Let me break it down for you—what is and isn’t happening with AI agents and how they can genuinely help your retail business today. First, let’s understand what an AI Agent is. 

An AI agent is a digital assistant powered by artificial intelligence. Think of it as a virtual employee you train by giving simple, clear instructions. It learns to handle routine tasks—like organizing customer emails or updating inventory lists.

AI agents are excellent at repetitive tasks, saving you time and effort. They don't come pre-programmed like regular software; instead, they use AI to adapt based on your instructions. However, you’ll still need to supervise to ensure accuracy.

What AI Agents Can Do Right Now:

Today’s AI agents are very good at simple, repetitive tasks involving data and text—like pulling customer contact information from emails or websites and putting it neatly into a spreadsheet. These tasks work reliably because they are clear, straightforward, and repetitive.

What AI agents can't yet do well is work independently across multiple software platforms, like your sales software, inventory management, and accounting system, without human oversight. Technology isn't quite there yet, and claims otherwise are mostly hype.

The 3 Levels of AI Agents (in easy terms):

• Level 1: Reliable and Ready (Available Now)

  • Good for routine, repetitive tasks (e.g., updating inventory data, organizing customer emails).

  • Does exactly what you set up—no guessing or decision-making.

• Level 2: Promising but Limited (Coming Soon)

  • Will soon handle more complex tasks like linking your sales data automatically with marketing tools.

  • Still needs clear instructions and careful setup to avoid errors.

• Level 3: Future Dreams (Not Practical Yet)

  • Fully autonomous AI "employees" that handle everything from purchasing inventory to customer support without human intervention.

  • Exciting but currently unreliable and unpredictable.

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Practical Opportunities for Your Retail Business Today:

AI can seem unpredictable because it sometimes gives different answers to the same questions, like asking a new employee the same question twice and getting two different answers.

A solution that works right now: AI writes small programs for you. For instance, you ask AI to "find everyone in my email who asked about a product and add them to a newsletter list," and it generates a program to handle that task consistently, every single time. You control and adjust this program as needed.

Realistic Expectations (What You Should Count On):

• Reliability over complexity: Instead of chasing the latest flashy AI promises, start with simple, reliable tasks that save time and reduce errors.

• Think of yourself as an AI supervisor: Your role will be guiding, correcting, and overseeing AI tasks—not handing your entire business over to AI.

• Complete AI autonomy is years away: Treat promises of fully automated AI businesses with caution—they're still far from reliable.

• AI as your new integration assistant: AI's real strength right now is helping you connect and manage your existing tools better, like making inventory management and marketing systems talk smoothly to each other.

Bottom line: AI agents can help you streamline your retail operations today—but only if you’re realistic, start simple, and work with someone who understands retail and AI.