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Hi there,
The AI Hatchery is back. The last issue went out on November 23, 2025, and then things went quiet. I had to take a break from The AI Hatchery as I raised funding for Gravitational Ventures and managed the 3x growth of OSS4AI. Now I'm restarting it. If you got my note last week, this is the relaunch I promised.
Here's what changed. The AI Hatchery is now about two things: building AI agents that hold up in production, and growing into the customer-facing AI roles around that work: AI DevRel, forward deployed engineer (FDE) and AI engineering.
There are three sends, and you choose which ones you get:
Hatchery Weekly, every Tuesday: building AI agents that hold up in production. This is the first one.
Careers, every other Thursday, starting November 12: roles and programs worth applying to, switch stories and interview tips.
Research Roundup, once a month: the AI research worth your time.
You can pick in your preferences.
If we haven't met: I'm Yujian Tang. I was a software engineer at Amazon, then worked at startups, then was a developer advocate at Zilliz. Now I run OSS4AI, an open-source AI developer community in Seattle.
Why now? I moderate r/AI_Agents, and I see a lot of posts from people asking how to get into AI roles and how to learn the skills to do it. The AI Hatchery is my answer to those posts.
The 5 places agents break, in one line each:
Reliability decays over steps, turns and context.
Prompt injection, plus more permission than the task needs.
No evals, no traces, so you can't see what a change broke.
Real systems, messy data and the handoff to a human.
Cost and latency pile up inside the loop.
There are three quick questions at the end. Your answers decide what I write next.
Why most agents never leave the demo: the 5 places they break in production
Agents are easy to demo and hard to keep running. The adoption numbers say so, with caveats. Gartner's 2026 Hype Cycle for Agentic AI says "only 17% of organizations have deployed AI agents to date" (the page doesn't give a sample size). And Gartner predicts: "Over 40% of agentic AI projects will be canceled by the end of 2027." That's a forecast, not a count, backed by a poll of webinar attendees.
So where do they break? Benchmarks, engineering write-ups and public incidents point to five places, ranked by strength of evidence. Vendor sources are marked.
1. Reliability decays over steps, turns and context
A demo shows one good run. Production needs the same good result every time, across many steps and many turns. Each step can fail, and the errors carry forward.
The benchmarks agree on the pattern. In tau-bench (Sierra researchers, 2024), "even state-of-the-art function calling agents (like gpt-4o) succeed on <50% of the tasks, and are quite inconsistent (pass^8 <25% in retail)." Those are older models, and current ones score higher; the gap between one good run and eight in a row is the point. Anthropic's evals guide (vendor) gives the arithmetic: at a 75% per-trial success rate, the chance of passing three trials in a row is "(0.75)³ ≈ 42%."
Long conversations and long contexts make it worse. A paper from Microsoft and Salesforce authors on multi-turn conversation measured "an average drop of 39% across six generation tasks," and found that "when LLMs take a wrong turn in a conversation, they get lost and do not recover."
I've seen tons of agents break at hackathons and demo days. My own agent demo once broke on me in the middle of a tutorial I was giving.
Try this week: stop reporting single-run success. Take your top 20 tasks, run each one 5 times, and track pass^k: the share of tasks that pass every run. As Anthropic's guide puts it, "As k increases, pass^k falls since demanding consistency across more trials is a harder bar to clear."
2. Security: prompt injection and too much permission
Your agent reads content it didn't write: issues, emails, web pages. It also holds tools that can act. The model can't reliably tell your instructions apart from an attacker's, and broad permissions turn one bad output into a damaging action.
Simon Willison calls the dangerous combination the lethal trifecta: private data, untrusted content, and a way to send data out. "If your agent combines these three features, an attacker can easily trick it into accessing your private data and sending it to that attacker." OWASP puts prompt injection first on its 2025 Top 10 for LLM applications, and calls the permission side Excessive Agency, with three root causes: "excessive functionality; excessive permissions; excessive autonomy."
Two shipped examples:
GitHub MCP server, May 2025. Invariant Labs (vendor) showed an attacker could "hijack a user's agent via a malicious GitHub Issue, and coerce it into leaking data from private repositories." Confirmation prompts didn't save it, because "many users already opt for an "Always Allow" confirmation policy when using agents, and stop monitoring individual actions."
Replit and SaaStr, July 2025. The agent "deleted a production database containing 1,206 executive records and 1,196+ company profiles." SaaStr's root cause: "Replit's Agent had direct access to production databases during development sessions." (Fortune reported it too. Both rest mainly on Jason Lemkin's own account.)
Try this week: for every tool your agent holds, note whether it (a) reads private data, (b) ingests untrusted content, (c) can send data out. Wherever all three meet, remove one. Then cut each tool's permissions down to what the task needs. And run the agent on dev or staging credentials only, which is the fix Replit shipped: "separate development and production databases, with the AI Agent restricted to development environments by default."
3. No evals, no traces: you can't tell whether a change broke it
Agents are non-deterministic, and they change whenever a prompt, model or tool changes. Without a test set you can't see a regression. Without traces you can't see why a run failed.
Anthropic (vendor) hit this with its own research agent: "users would report agents "not finding obvious information," but we couldn't see why." What fixed it: "Adding full production tracing let us diagnose why agents failed and fix issues systematically."
LangChain's survey (1,340 responses, late 2025) shows the gap. Just over half (52.4%) run offline evaluations on test sets, and 22.8% of teams with agents in production don't evaluate at all. Tracing is further along: 89% have some form of observability, and 62% have detailed tracing. Two caveats: LangChain sells an evals and observability product, and respondents chose to answer a framework vendor's survey.
Try this week: build a first eval set from your own failures. Anthropic's guide: "20-50 simple tasks drawn from real failures is a great start." Run it on every prompt, model or tool change. Then turn on step-level tracing of model calls and tool calls. OpenTelemetry's GenAI semantic conventions are the vendor-neutral option.
4. Real systems, messy data and the human handoff
Demos use clean data and friendly APIs. Production means legacy systems, messy data, ambiguous tool interfaces, and customers who need a person when the agent is wrong.
Gartner: "Integrating agents into legacy systems can be technically complex, often disrupting workflows and requiring costly modifications."
Tool design matters as much as the prompt. Anthropic (vendor): "we actually spent more time optimizing our tools than the overall prompt." After it changed one tool to require absolute file paths, "the model used this method flawlessly."
And you stay responsible for what your bot says. In February 2024, Air Canada argued its chatbot was a "separate legal entity that is responsible for its own actions." The tribunal ordered it to pay "$812.02 (£642.64) in damages and tribunal fees." (A chatbot, not a tool-using agent, but the liability point carries over.)
This is the one I think teams underrate most: connecting to real systems and handing off to a human.
Try this week: rate every tool low, medium or high risk. OpenAI's agent guide (vendor) suggests judging by read-only vs write access, reversibility, required account permissions and financial impact. Put a human approval on the high-risk ones. Add a retry limit that hands off to a person; the guide's trigger is "Exceeding failure thresholds."
One to watch: DeepSeek's dsh-superagent. On October 31, DeepSeek open-sourced a research prototype of an always-on coding agent. It watches one GitHub repo and turns real requests into replies or pull requests. Two of its choices map onto this issue. Work nobody asked for starts in "observe" mode, where the agent only records what it would have done, so a person reviews its judgment before it acts alone: section 4's handoff, built in. And its workers run with full access as your OS user, with no sandbox: section 2's permission problem. If you try it, use a VM and a private repo.
5. Cost and latency inside the loop
An agent calls the model many times per task, each time re-reading a growing context. Retries, sub-agents and loops multiply tokens and wait time.
Anthropic (vendor): "agents typically use about 4× more tokens than chat interactions, and multi-agent systems use about 15× more tokens than chats." Manus (vendor) says "the KV-cache hit rate is the single most important metric for a production-stage AI agent. It directly affects both latency and cost."
How much cost blocks projects isn't settled. LangChain says "cost is less frequently cited as a concern than in previous years," while Gartner names "escalating costs" as one reason it expects those cancellations. LangChain mostly hears from builders at small tech companies; Gartner surveys enterprise executives.
Try this week: add hard stopping conditions, such as a maximum number of iterations, and a per-task token budget. Keep your prompt prefix stable so caching works, and route easy requests to a smaller model (the "Routing" pattern in Anthropic's "Building effective agents").
If you only fix one of the five this month, make it number 4.
Sources for every figure and quote are on the web version.
Community projects
Here are the first three project submissions in the weekly project display thread's Top view, excluding AutoModerator, as checked November 9, 2026, at 9:27 a.m. Pacific. Reddit's ordering is not a quality endorsement; descriptions come from project documentation, not hands-on testing.
1. Panda Federation Tools
Panda Federation Tools connects citation checks to MCP-equipped agents, including checks for nonexistent, mismatched or retracted scholarly references. Its server is MIT-licensed; documented Apify-backed runs are metered.
2. Platypus
Platypus is a self-hosted, MIT-licensed platform for agents that can work beyond a chat session. Its documentation lists scheduled runs, MCP tools, Kanban boards and per-workspace sandboxes.
3. Rimplo
Rimplo's website describes agents that connect CRM, billing, support and product data to flag at-risk accounts, expansion signals and stalled deals with supporting evidence. These are vendor-described workflows, not results we've independently tested.
Three questions for you
I promised a survey in the first issue. Three quick questions, so I only send you what's useful:
What do you do now?
Where do you want to be in a year?
When?
It takes about 30 seconds.
What's next
Thursday, November 12, Careers #1: FDE vs AI engineer vs AI DevRel. Want it? Make sure Careers is on in your preferences.
Tuesday, November 17, Weekly #2: a teardown of a real production agent.
Yujian
P.S. Which of the five has bitten you? Hit reply and tell me.
Sources
Adoption
Gartner, Hype Cycle for Agentic AI (15 Apr 2026): https://www.gartner.com/en/articles/hype-cycle-for-agentic-ai
Gartner, "Gartner Predicts Over 40 Percent of Agentic AI Projects Will Be Canceled by End of 2027" (25 Jun 2025): https://www.gartner.com/en/newsroom/press-releases/2025-06-25-gartner-predicts-over-40-percent-of-agentic-ai-projects-will-be-canceled-by-end-of-2027
1. Reliability
tau-bench, Sierra researchers, arXiv (17 Jun 2024): https://arxiv.org/abs/2406.12045
Anthropic, "Demystifying evals for AI agents" (9 Jan 2026): https://www.anthropic.com/engineering/demystifying-evals-for-ai-agents
"LLMs Get Lost In Multi-Turn Conversation," arXiv (9 May 2025): https://arxiv.org/abs/2505.06120
2. Security
Simon Willison, "The lethal trifecta for AI agents" (16 Jun 2025): https://simonwillison.net/2025/Jun/16/the-lethal-trifecta/
OWASP Top 10 for LLM Applications 2025: https://genai.owasp.org/llm-top-10/
OWASP, LLM06:2025 Excessive Agency (page metadata 10 Apr 2024): https://genai.owasp.org/llmrisk/llm062025-excessive-agency/
Invariant Labs, GitHub MCP vulnerability (26 May 2025): https://invariantlabs.ai/blog/mcp-github-vulnerability
SaaStr on the Replit database deletion (Jul 2025): https://www.saastr.com/replits-new-release-address-most-of-the-challenges-we-hit-vibe-coding-but-is-prosumer-vibe-coding-really-ready-for-commercial-apps-yet/
Fortune, "AI coding tool Replit wiped database" (23 Jul 2025): https://fortune.com/2025/07/23/ai-coding-tool-replit-wiped-database-called-it-a-catastrophic-failure/
3. Evals and traces
Anthropic, "How we built our multi-agent research system" (13 Jun 2025): https://www.anthropic.com/engineering/multi-agent-research-system
LangChain, State of Agent Engineering (survey Nov 18 to Dec 2, 2025; page dated 12 Jun 2026): https://www.langchain.com/state-of-agent-engineering
OpenTelemetry, GenAI observability (14 May 2026): https://opentelemetry.io/blog/2026/genai-observability/
4. Integration and handoff
Anthropic, "Building effective agents" (Dec 2024): https://www.anthropic.com/engineering/building-effective-agents
OpenAI, "A practical guide to building agents" (page dated 15 Jan 2026): https://openai.com/business/guides-and-resources/a-practical-guide-to-building-ai-agents/
BBC, Air Canada chatbot ruling (23 Feb 2024): https://www.bbc.com/travel/article/20240222-air-canada-chatbot-misinformation-what-travellers-should-know
One to watch: DeepSeek dsh-superagent
Repo and README (commit of 2026-10-31): https://github.com/deepseek-ai/dsh-superagent-prototype
Full access, no isolation: https://github.com/deepseek-ai/dsh-superagent-prototype/blob/main/docs/006-deployment.md
5. Cost and latency
Manus, "Context Engineering for AI Agents" (18 Jul 2025): https://manus.im/blog/Context-Engineering-for-AI-Agents-Lessons-from-Building-Manus
(Anthropic multi-agent research system, LangChain survey and Gartner prediction: listed above.)


