AI agents exist on a spectrum from simple chatbots to self-improving systems. I want to break down exactly what each level can and cannot do, based on my experience building and working with these systems.
Level 0 agents are basic chatbots. They talk to you but cannot do anything else. Think of the original ChatGPT – great for answering questions, but unable to take any real actions. These agents stay within the boundaries of text-based conversation.
Level 1 agents can use external tools when you tell them to. Current ChatGPT with its tools or custom GPTs fit here. They will generate images, run code, or search the web, but only when specifically instructed. They need step-by-step guidance for every action.
Level 2 agents handle complex workflows automatically. I built my content dashboard as a Level 2 system – it researches topics, writes posts, and sends content to your dashboard for approval without needing constant input. These agents chain multiple steps together efficiently.
Level 3 agents work continuously without oversight. They use recursive self-prompting to optimize their own processes. The Infinite Backrooms AI project demonstrated this by autonomously creating a crypto-coin and generating significant returns. These agents adapt and improve their strategies independently. (Don’t read its X posts though.)
Level 4 represents true AI independence. These systems identify their own limitations, learn new capabilities, and integrate additional tools without human involvement. While we haven’t achieved this level yet, it points toward artificial general intelligence with better models powering it.
I find this framework useful for evaluating AI systems and understanding their real capabilities. Many companies claim to have autonomous AI, but examining where they fall in these levels reveals their actual limitations.
What level of AI agent would be most useful for your needs?
