Failure Modes: Why Agents Break

MASFT (Berkeley, 2025) catalogs 14 multi-agent failure modes in 3 categories. Microsoft's Taxonomy documents how existing AI failures amplify in agentic settings. Industry field data converges on five recurring modes: hallucinated actions, scope creep, cascading errors, context loss, tool misuse.

Learn + Build 1 hr Python (stdlib)

Prerequisites: Phase 14 · 05 (Self-Refine and CRITIC), Phase 14 · 24 (Observability)

#Learning Objectives

  • Name MASFT's three failure categories and at least four specific modes in each.
  • Explain why agentic failure amplifies existing AI failure modes (bias, hallucination).
  • Describe the five industry-recurring modes and their mitigations.
  • Implement a stdlib detector that tags agent traces with failure-mode labels.
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The text and code of this lesson are based on AI Engineering from Scratch by Rohit Ghumare, MIT licensed.