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Emergent Directions for Agentic AI

Large Action Models (LAMs)

Models designed to reason about actions, workflows, and consequences. Used for:

●       Browser automation

●       Enterprise workflows

●       Multi-step operations

●       Transaction execution


Model Specialization

Role

Best Model Type

Parsing

Small / Fast

Drafting

Small / Medium

Planning

Medium / Large

Verification

Large / Low-temp

Compliance

Large / Deterministic

Long Context

Long-context specialist

Context Engineering

Context engineering is now widely treated as the successor discipline to prompt engineering. It is the deliberate design of everything a model sees on every inference call: system prompt, user input, retrieved documents, conversation history, tool definitions, and long-term memory. The shift happened for three reasons: agents fail on state-management, not phrasing; context windows grew past 1M tokens, making naive "stuff everything in" both expensive and worse (the "lost in the middle" effect); and "context rot",  degraded performance as context grows became a measurable, actively-managed phenomenon rather than a curiosity.

The Four-Layer Context Stack

Layer

Contents

Reference Cadence

System context

Instructions, persona, output schema, tool definitions

Per deployment

Persistent context

Memory of prior sessions, user preferences, learned facts

Per session / weekly

Retrieved context

RAG hits, search results, DB lookups, document chunks

Per turn

Workflow / state context

Prior agent decisions, current plan, tool outputs so far

Per step