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The a16z Show · Wednesday, August 26, 2026

AI Agents as Models in Loops: Automating Business Processes

The concept of AI agents is defined as a model within a loop, equipped with tools and memory, capable of automating business processes. Examples like autonomous bug fixing in coding and potential applications in price optimization and procurement illustrate this automation capability.

The tape

3 quotes
“If you look at the way that the evolution of AI use has gone, it has gone from prompting models to putting models in loops.”
“You know, the term agent is overused, but agent is just a model in a loop with sort of tools and memory and a few other things.”
“This is how enterprise automation is going to occur through AI.”
Heard on The a16z Show — “The State of AI: Macro, Apps, and Consumer”, published Wednesday, August 26, 2026. Heardvine summarizes and quotes with attribution and timestamps, and links to the original everywhere.
Transcribed via Gemini audio transcription · $0.05
AI Agents as Models in Loops: Automating Business Processes — Heardvine