Building Applications with AI Agents — Michael Albada, Microsoft
Jul 24, 2025 · 15:50
Michael Albada, Principal Applied Scientist at Microsoft, explains how to build effective AI agent systems, defining agents as entities that reason, act, communicate, and adapt. He emphasizes that tool use requires exposing grouped, human-facing functions rather than one-to-one API mappings, noting a 254% increase in agentic Y Combinator startups. Orchestration should start simple with chains and trees before moving to fully agentic patterns, using deterministic logic for safety and external state management. For multi-agent systems, he recommends splitting tools into semantically similar groups to avoid overwhelming a single agent. Albada stresses investing in evaluation via open-source tools like Intel Agent, Pirate, Label Studio, and automatic optimization with Trace, TextGrad, and DSPY. He warns against common pitfalls: insufficient evals, poorly designed tools, excessive complexity, and lack of observability, while urging design for security with tripwires and fallback to human review.
