AI Agents Face Scaling Challenges and Hallucinations

Tech executives and consultants told Business Insider that AI agents can automate discrete tasks but face scaling problems such as hallucinations, which can multiply when agents are daisy-chained (a cited example posits a 5% hallucination rate compounding across workflows). They say autonomous, general-purpose agents remain aspirational for now, predict hallucinations may be mostly solved within five years, and urge firms to redesign roles, training, and governance to capture productivity gains.