Why AI Still Struggles With Context: The Concurrency Bug an LLM Couldn’t Fix
AppUnstuck Team
Educational Blog for Engineering Leaders
TL;DR
AI agents excel in controlled demos, but in production, they frequently fail due to the Compounding Error Rate and context drift. Multi-step workflows amplify small errors: a 5% failure at step one can balloon to 50% by step ten. Concurrency issues and state fragmentation compound the problem. Engineering teams must shift from autonomous “black boxes” to observable, decomposed workflows with mandatory human checkpoints to achieve reliability at scale.
The Illusion of Autonomy
Hype suggests AI agents can manage entire business processes, yet the reality is starkly different. The core issue is Contextual Decay:
- Every step in a multi-turn workflow introduces small noise into the agent’s state.
- In long workflows, this noise compounds, causing hallucinated history or concurrency bugs.
- What works in a demo rarely survives production constraints.
Why Multi-Step Workflows Fail
1. Compounding Error Rate (CER)
A 95% success rate per step may seem fine, but over multiple steps, reliability drops sharply:
- 5 steps → ~77% success
- 10 steps → ~50% success
Failures often appear subtle: wrong data silently written, rather than outright crashes.
2. State Drift and Context Fragmentation
LLMs prioritize beginnings and ends of prompts, neglecting mid-history details. Critical data (e.g., user IDs, locks) can be lost in long workflows, causing unexpected failures downstream.
3. The Concurrency Paradox
LLMs struggle to reason about simultaneous events. Race conditions, deadlocks, or multi-channel updates are often ignored unless explicitly handled. Attempts to auto-fix these issues usually generate more fragile code.
Framework for Fixing Context-Related Failures
A “Reliability-First” architecture helps stabilize agentic workflows.
Step 1: Decompose into Micro-Workflows
- Rule: Use LLMs only where necessary. Regex, SQL, or deterministic functions should replace AI.
- Implementation: Use a state machine (e.g., Temporal, LangGraph) to orchestrate steps.
Step 2: Implement Checkpointing & Validation
- Schema Validators: Ensure outputs match expected formats; trigger retries or human alerts for invalid data.
Step 3: Enforce Context Pruning
- Summarization Layer: Condense state after every few steps to prevent context overload and drift.
Step 4: Defensive Concurrency Patterns
- Locks & Safeguards: Use optimistic or distributed locks to prevent race conditions. Agents should never manage locks autonomously.
Step 5: Human-in-the-Loop (HITL)
- High-Blast Radius Actions: For irreversible actions, require human approval if confidence scores fall below thresholds (e.g., 0.85).
Lessons Learned
- Observability is Non-Negotiable: Standard logs aren’t enough; use traceability tools like LangSmith or Arize Phoenix.
- AI Agents are Junior Devs, Not Architects: They can write boilerplate but cannot design concurrency or state management.
- Testing Must Be Probabilistic: Run prompts multiple times and measure variance. Fragile outputs indicate workflow or architecture issues.
CTA: Stabilize Your AI Workflows
At App Unstuck, we help teams turn fragile, agentic workflows into production-ready systems:
- AI Reliability Audits: Identify bottlenecks and failure points.
- Code Reviews: Implement state machines and guardrails.
- Architecture Refactoring: Move from autonomous chaos to orchestrated reliability.
Don’t let context drift sink your product. Contact the AppUnstuck Team today for a consultation.