From AI to Agents to Agencies

Two years ago, I wrote about the transformative potential of AI Agents - autonomous systems that could break down complex tasks and execute them without constant human intervention. The core thesis was that while ChatGPT was reactive, Agents would be proactive, capable of independent problem-solving and task execution.

Much of that vision has materialized. We now have Agents that can autonomously code websites, manage digital workflows, and execute multi-step processes. The economic dynamics I predicted are playing out: Agents are indeed starting to handle entry-level digital work, from copywriting to simple coding tasks.

But as I've observed the ecosystem evolve, particularly through my work at NonBioS, a new architectural pattern seems to be emerging that represents a fundamental leap beyond what we call "Agents" today.

What I'm witnessing is the birth of what I believe should be called Agencies - systems that tackle individual tasks by dynamically orchestrating different types of intelligence, each optimized for specific subtasks, all working toward completing a single overarching objective.

An Agency is fundamentally different from an Agent. While an Agent is a single intelligence (an LLM) enhanced with tool-calling capabilities working on a task, an Agency is a coordination system that can access and deploy multiple specialized intelligences (LLMs) to complete different parts of the same task.

Think of it this way: if an Agent is like a skilled generalist who uses various tools to complete a task, an Agency is like a master craftsperson who can tap into different types of expertise and capability as needed - strategic thinking for planning, procedural intelligence for routine steps, specialized knowledge for technical implementation - all flowing seamlessly within the execution of a single task.

Traditional AI Agents, as we understood them in 2023, were essentially sophisticated wrappers around a single Large Language Model with tool-calling capabilities. When given a task like "build a web application," the Agent would use one primary intelligence source (say, GPT-4) for all aspects - planning, coding, debugging, documentation - supplemented by external tools for specific functions.

Agencies operate on a fundamentally different principle: single task, multiple intelligences. They're built around three core components:

1. Task Context Management: The Agency maintains unified context about the specific task at hand - requirements, constraints, progress, and accumulated decisions. This ensures continuity as different intelligences contribute to different subtasks.

2. Intelligence Allocation System: Rather than using one model for everything, the Agency has access to multiple specialized intelligences and dynamically selects the most appropriate one for each subtask within the larger task.

3. Orchestration Logic: A coordination system that breaks down the main task into subtasks, determines which intelligence to use for each part, and ensures all contributions integrate coherently toward task completion.

Here's what this looks like in practice: You give an Agency the task "Build a Python web scraper for e-commerce data." Instead of using one model for everything:

1. Task planning → High-capability reasoning model creates overall architecture

2. Boilerplate code generation → Fast, efficient model handles routine coding patterns

3. Error handling → Debugging-focused model makes sure that the overall software works as intended

This is still ONE task (build the scraper), but different types of intelligence contribute to different subtasks, all coordinated toward the single objective.

This might not just be an incremental improvement over Agents - but a fundamentally different approach to task execution. Instead of forcing a single intelligence to handle all aspects of a task (even those it's not optimized for), Agencies intelligently distribute subtasks to the most appropriate intelligence type.

The key distinction is crucial: Agencies are not multiple Agents collaborating on a project. They are single unified systems that can access multiple types of intelligence to complete individual tasks more effectively.

The emergence of Agencies fundamentally changes how we think about AI-powered task completion: From Monolithic to Orchestrated Intelligence: We're moving beyond asking "What's the best model for this task?" to "What's the best combination of intelligences for different aspects of this task?"

We can now see a clear evolutionary path in artificial intelligence task execution:

AI (2020-2023): Individual models that could handle specific requests, but required human guidance for task breakdown and coordination.

Agents (2024-2025): Autonomous systems that could break down complex tasks and work independently, but used single intelligence sources for all subtasks regardless of specialization needs.

Agencies (2025+): Unified systems that intelligently orchestrate multiple specialized intelligences within individual tasks, matching the right type of intelligence to each subtask for optimal results.

The key insight is that Agencies represent a shift from "one intelligence handles one task" to "multiple intelligences collaborate within one task." This isn't about distributing tasks across multiple autonomous systems - it's about intelligently distributing intelligence types within unified task execution.

This evolution makes AI task completion more efficient, cost-effective, and higher quality by ensuring each piece of work gets handled by the type of intelligence best suited for it, while maintaining coherent progress toward a single objective.