Building Production AI Agents: Lessons from Shipping Autonomous Systems

The Demo-to-Production Gap

Every AI agent demo looks magical. The agent reads a prompt, executes a series of actions, and produces a working result in minutes. What the demo doesn't show: the 30% of cases where the agent goes in circles, the silent data corruption, the 3 AM alerts when the agent decides to refactor production code.

Shipping production AI agents requires solving problems that don't exist in demos.

Lesson 1: Constrain the Action Space

The most common mistake in agent design is giving the agent too much freedom. An agent with unrestricted shell access will eventually:

• Delete files it shouldn't
• Install packages with vulnerabilities
• Run commands that consume all available resources
• Modify configuration that breaks other services

Solution: Define an explicit allowlist of tools and actions. An agent for code review shouldn't be able to modify files. An agent for deployment shouldn't be able to write code. Principle of least privilege applies to AI agents exactly as it applies to human users.

Lesson 2: Implement Circuit Breakers

Agents sometimes enter failure loops — attempting the same action repeatedly, each time expecting different results. Without intervention, this burns tokens, wastes compute, and never converges.

// Circuit breaker pattern for agents
const MAX_RETRIES = 3;
const MAX_TURNS = 25;
const MAX_COST_PER_TASK = 5.00; // USD

if (retryCount > MAX_RETRIES) escalateToHuman();
if (turnCount > MAX_TURNS) stopAndReport();
if (costAccumulated > MAX_COST_PER_TASK) pauseAndNotify();

Lesson 3: Observability Is Non-Negotiable

You cannot debug an agent by reading its final output. You need:

• Full trace logs: Every tool call, every model response, every decision point
• Token usage tracking: Per-task, per-agent, per-session
• Latency monitoring: Identify which tools or reasoning steps are bottlenecks
• Error categorization: Distinguish between model errors, tool errors, and logic errors
• Confidence signals: When the agent is uncertain, it should say so

Lesson 4: Human-in-the-Loop Isn't Optional

Full autonomy is a goal, not a starting point. Production agents need approval gates:

• Tier 1 (Auto-approve): Read-only operations, running tests, generating reports
• Tier 2 (Soft approval): Code edits, configuration changes — proceed unless human objects within N minutes
• Tier 3 (Hard approval): Deployments, data mutations, external API calls — always require human confirmation

Lesson 5: Test the Agent, Not Just the Code

Traditional testing verifies that code produces correct outputs for given inputs. Agent testing verifies that the decision-making process is sound:

• Adversarial inputs: Does the agent handle intentionally confusing requirements?
• Error recovery: When a tool fails, does the agent retry intelligently or loop?
• Scope containment: Does the agent stay within the bounds of the task?
• Regression prevention: Does the agent avoid introducing bugs when fixing other bugs?

Lesson 6: Cost Control Is a Feature

AI agents consume tokens at rates that can shock you. A complex task might require 50+ model calls, each consuming 4K-10K tokens. At scale, this adds up:

Scenario	Tokens/Task	Cost/Task	1000 Tasks/Month
Simple bug fix	~50K	~$0.50	$500
Feature impl.	~200K	~$2.00	$2,000
Large refactor	~500K	~$5.00	$5,000

Building cost awareness into the agent — caching, early termination, efficient tool use — is a production requirement, not a nice-to-have.

Conclusion

Production AI agents are fundamentally different from demo agents. The technology (the model) is maybe 30% of the challenge. The remaining 70% is engineering: guardrails, observability, cost control, and human-agent collaboration design. The teams that get these right will build agents that users actually trust.