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We collectively examine the emerging landscape of AI agents, contrasting pervasive marketing hype with current technical realities. We explain what AI agents are, differentiating them from simpler AI, and detail the significant limitations preventing widespread autonomous deployment, such as high failure rates, challenges in reasoning and long-term memory, and difficulties with integration into legacy systems. We also highlight real-world examples of AI agent failures, discuss crucial ethical and legal concerns like accountability and data security, and offer realistic insights from experts on the technology's short-term and long-term prospects, emphasizing the need for human oversight and foundational AI infrastructure rather than full automation.