Decoding AI AGENT: The Intelligent Force Shaping the Future New Economic Ecosystem

1. Background Overview

1.1 Introduction: "New Partners" in the Intelligent Era

Each cryptocurrency cycle brings new infrastructure that drives the development of the entire industry.

• In 2017, the rise of smart contracts led to the booming development of ICOs.
• In 2020, the liquidity pools of DEXs brought about the summer boom of DeFi.
• In 2021, the emergence of a large number of NFT series marked the arrival of the era of digital collectibles.
• In 2024, the outstanding performance of a certain launch platform led the trend of memecoins and launch platforms.

It is important to emphasize that the emergence of these vertical fields is not solely due to technological innovation, but rather the perfect combination of financing models and bull market cycles. When opportunity meets the right timing, it can lead to tremendous transformations. Looking ahead to 2025, it is clear that the emerging field in the 2025 cycle will be AI agents. This trend peaked last October, with a certain token launching on October 11, 2024, and reaching a market value of $150 million by October 15. Shortly after, on October 16, a certain protocol launched Luna, making its debut with the image of a neighbor girl live streaming, igniting the entire industry.

So, what exactly is an AI Agent?

Everyone must be familiar with the classic movie "Resident Evil", in which the AI system the Red Queen leaves a deep impression. The Red Queen is a powerful AI system that controls complex facilities and security systems, capable of autonomously perceiving the environment, analyzing data, and taking swift action.

In fact, AI Agents share many similarities with the core functions of the Red Queen. In reality, AI Agents play a somewhat similar role; they are the "smart guardians" of modern technology, helping businesses and individuals tackle complex tasks through autonomous perception, analysis, and execution. From self-driving cars to intelligent customer service, AI Agents have penetrated various industries, becoming a key force for enhancing efficiency and driving innovation. These autonomous intelligent entities, like invisible team members, possess comprehensive abilities ranging from environmental perception to decision-making execution, gradually infiltrating various sectors and promoting the dual enhancement of efficiency and innovation.

For example, an AI AGENT can be used for automated trading, managing portfolios in real-time and executing trades based on data collected from a data platform or social platform, continuously optimizing its performance through iterations. AI AGENT is not a single form, but is categorized into different types based on specific needs within the crypto ecosystem:

1. Execution AI Agent: Focused on completing specific tasks such as trading, portfolio management, or arbitrage, aimed at improving operational accuracy and reducing the time required.

2. Creative AI Agent: Used for content generation, including text, design, and even music creation.

3. Social AI Agent: Acts as an opinion leader on social media, interacts with users, builds communities, and participates in marketing activities.

4. Coordinating AI Agent: Coordinates complex interactions between systems or participants, particularly suitable for multi-chain integration.

In this report, we will delve into the origins, current status, and broad application prospects of AI Agents, analyzing how they are reshaping industry landscapes and looking forward to their future development trends.

1.1.1 Development History

The development of AI AGENT showcases the evolution of AI from fundamental research to widespread application. The term "AI" was first introduced at the Dartmouth Conference in 1956, laying the foundation for AI as an independent field. During this period, AI research primarily focused on symbolic methods, giving rise to the first AI programs, such as ELIZA (a chatbot) and Dendral (an expert system in the field of organic chemistry). This phase also witnessed the initial proposal of neural networks and the preliminary exploration of machine learning concepts. However, AI research during this time was severely constrained by the limitations of computing power. Researchers faced significant difficulties in developing algorithms for natural language processing and mimicking human cognitive functions. Furthermore, in 1972, mathematician James Lighthill submitted a report published in 1973 regarding the state of ongoing AI research in the UK. The Lighthill report essentially expressed a comprehensive pessimism about AI research after the initial excitement phase, leading to a significant loss of confidence in AI from British academic institutions (, including funding agencies ). After 1973, funding for AI research was drastically reduced, and the AI field experienced its first "AI winter," with increasing skepticism about AI's potential.

In the 1980s, the development and commercialization of expert systems led global enterprises to begin adopting AI technology. Significant progress was made during this period in machine learning, neural networks, and natural language processing, paving the way for the emergence of more complex AI applications. The introduction of autonomous vehicles and the deployment of AI in various industries such as finance and healthcare also marked the expansion of AI technology. However, from the late 1980s to the early 1990s, the AI field experienced a second "AI winter" as market demand for specialized AI hardware collapsed. Additionally, scaling AI systems and successfully integrating them into practical applications remains an ongoing challenge. Meanwhile, in 1997, IBM's Deep Blue computer defeated world chess champion Garry Kasparov, marking a milestone in AI's ability to solve complex problems. The revival of neural networks and deep learning laid the foundation for AI development in the late 1990s, making AI an indispensable part of the technology landscape and beginning to influence everyday life.

By the beginning of this century, advancements in computing power propelled the rise of deep learning, with virtual assistants like Siri demonstrating the practicality of AI in consumer applications. In the 2010s, breakthroughs were made by reinforcement learning agents and generative models like GPT-2, pushing conversational AI to new heights. In this process, the emergence of Large Language Models (LLMs) became a significant milestone in AI development, particularly with the release of GPT-4, which is regarded as a turning point in the field of AI agents. Since the launch of the GPT series by a certain company, large-scale pre-trained models have showcased language generation and understanding capabilities that surpass traditional models through hundreds of billions, or even trillions, of parameters. Their outstanding performance in natural language processing enables AI agents to demonstrate clear and structured interactive capabilities through language generation. This allows AI agents to be applied in scenarios such as chat assistants and virtual customer service, gradually expanding to more complex tasks like business analysis and creative writing.

The learning ability of large language models provides AI agents with greater autonomy. Through Reinforcement Learning techniques, AI agents can continuously optimize their behavior and adapt to dynamic environments. For example, in a certain AI-driven platform, AI agents can adjust their behavior strategies based on player input, truly achieving dynamic interaction.

From the early rule-based systems to large language models represented by GPT-4, the development history of AI agents is a history of continuous breakthroughs in technological boundaries. The emergence of GPT-4 is undoubtedly a significant turning point in this process. With further technological advancements, AI agents will become more intelligent, contextualized, and diversified. Large language models not only inject the "wisdom" soul into AI agents but also provide them with the ability to collaborate across fields. In the future, innovative project platforms will continue to emerge, driving the implementation and development of AI agent technology and leading a new era of AI-driven experiences.

1.2 Working Principle

The difference between AIAGENT and traditional robots lies in their ability to learn and adapt over time, making nuanced decisions to achieve goals. They can be seen as highly skilled and continuously evolving participants in the cryptocurrency space, capable of acting independently in the digital economy.

The core of the AI AGENT lies in its "intelligence"------that is, simulating human or other biological intelligent behaviors through algorithms to automate the solution of complex problems. The workflow of the AI AGENT typically follows these steps: perception, reasoning, action, learning, adjustment.

1.2.1 Perception Module

The AI AGENT interacts with the external world through a perception module, collecting environmental information. This part of the function is similar to human senses, utilizing sensors, cameras, microphones, and other devices to capture external data, which includes extracting meaningful features, recognizing objects, or identifying relevant entities in the environment. The core task of the perception module is to transform raw data into meaningful information, which often involves the following technologies:

• Computer Vision: Used for processing and understanding image and video data.
• Natural Language Processing (NLP): Helps AI AGENT understand and generate human language.
• Sensor fusion: Integrating data from multiple sensors into a unified view.

1.2.2 Inference and Decision-Making Module

After perceiving the environment, the AI AGENT needs to make decisions based on the data. The reasoning and decision-making module is the "brain" of the entire system, which conducts logical reasoning and strategy formulation based on the collected information. Utilizing large language models as orchestrators or reasoning engines, it understands tasks, generates solutions, and coordinates specialized models for specific functions such as content creation, visual processing, or recommendation systems.

This module typically uses the following technologies:

• Rule Engine: Simple decision-making based on preset rules.
• Machine learning models: including decision trees, neural networks, etc., used for complex pattern recognition and prediction.
• Reinforcement Learning: Allow AI AGENT to continuously optimize decision-making strategies through trial and error, adapting to changing environments.

The reasoning process usually consists of several steps: first, an assessment of the environment; second, calculating multiple possible action plans based on the goals; and finally, selecting the optimal plan for execution.

1.2.3 Execution Module

The execution module is the "hands and feet" of the AI AGENT, putting the decisions of the reasoning module into action. This part interacts with external systems or devices to complete specified tasks. This may involve physical operations (such as robotic actions) or digital operations (such as data processing). The execution module relies on:

• Robot control system: used for physical operations, such as the movement of robotic arms.
• API call: Interacting with external software systems, such as database queries or network service access.
• Automated Process Management: In an enterprise environment, executing repetitive tasks through RPA (Robotic Process Automation).

1.2.4 Learning Module

The learning module is the core competency of the AI AGENT, enabling the agent to become smarter over time. Continuous improvements through feedback loops or "data flywheels" feed the data generated from interactions back into the system to enhance the model. This ability to gradually adapt and become more effective over time provides businesses with a powerful tool to enhance decision-making and operational efficiency.

The learning module is usually improved in the following ways:

• Supervised Learning: Using labeled data for model training, allowing the AI AGENT to complete tasks more accurately.
• Unsupervised learning: discovering underlying patterns from unlabelled data, helping agents adapt to new environments.
• Continuous Learning: Update models with real-time data to maintain agent performance in dynamic environments.

1.2.5 Real-time Feedback and Adjustment

The AI AGENT optimizes its performance through continuous feedback loops. The results of each action are recorded and used to adjust future decisions. This closed-loop system ensures the adaptability and flexibility of the AI AGENT.

1.3 Market Status

1.3.1 Industry Status

AI AGENT is becoming the focus of the market, bringing transformation to multiple industries with its immense potential as a consumer interface and autonomous economic agent. Just as the potential of L1 block space was difficult to estimate in the previous cycle, AI AGENT has also shown the same promise in this cycle.

According to the latest report from Markets and Markets, the AI Agent market is expected to grow from $5.1 billion in 2024 to $47.1 billion by 2030, with a compound annual growth rate (CAGR) as high as 44.8%. This rapid growth reflects the penetration of AI Agents across various industries and the market demand driven by technological innovations.

Large companies' investment in open-source proxy frameworks has also significantly increased. The development activities of frameworks such as AutoGen, Phidata, and LangGraph by a certain company are becoming increasingly active, indicating that AI AGENT has a larger market beyond the crypto space.