AI Engineering

Building Scalable Multi-Agent Systems
— A System Engineering Approach to Generative AI

Leonard S Palad · February 2026 · 14 min read
Building Scalable Multi-Agent Systems — A System Engineering Approach to Generative AI

Teams start with the wrong multi-agent pattern, skip hard limits, and underestimate orchestration complexity. That combination produces systems that look smart in a demo but fail when workload, errors, and edge cases show up.

The Consequence

The core problem: A single AI agent hits a ceiling fast. It cannot research, write, fact-check, and format a report in one pass. Multi-agent systems solve this by coordinating specialised agents — but the coordination pattern you choose determines whether your system scales or collapses. And without hard limits, any of these patterns can loop indefinitely.

After synthesising 18 passages from 11 published AI/ML books covering multi-agent architecture, the coordination failures fall into three distinct pattern categories — each with different trade-offs, failure modes, and cost implications. Here are all three.

Three Coordination Patterns That Determine Everything

Every multi-agent system must answer one question: who decides what happens next? The answer falls into three patterns, and choosing the wrong one wastes weeks of development time and produces a system that doesn't match your needs.

Pattern 1
Supervisor Architecture — Centralised Control

One agent receives the user's request, breaks it into sub-tasks, assigns each sub-task to a specialised agent, and collects results. The supervisor never performs the actual work — it only plans and delegates. If the user asks for a research report, the supervisor assigns one agent to gather information, another to write the draft, and a third to fact-check.

The risk: The supervisor is a single point of failure. If it makes a bad plan, every downstream agent executes the wrong work. And without iteration limits, the supervisor can enter a replan loop — unsatisfied with results, it reassigns the same task repeatedly. Each cycle burns tokens.

Best for: Small teams of 3–7 agents with clearly separated skills.

Pattern 2
Hierarchical Architecture — Teams of Teams

When you have twenty specialised agents, a single supervisor cannot manage them all. Hierarchical architecture organises agents into teams with team leaders, creating management layers similar to company org charts. A top-level supervisor oversees team leaders, and each team leader supervises their own specialists.

The risk: Failures cascade through layers. A bad decision at the top-level supervisor propagates to every team. Debugging requires tracing through multiple management levels. And the cost multiplier is real — a loop at the top level triggers loops in every team below it.

Best for: Complex workflows requiring 10+ agents organised into functional teams.

Pattern 3
Swarm Architecture — Peer-to-Peer Collaboration

No central controller. Agents communicate directly and hand off work dynamically. The research agent finishes and hands off to the writer. The writer discovers gaps and hands back to the researcher. This continues until both agents agree the work is complete.

The risk: This is where the $10,000 loop lives. Without hard limits on total handoffs, agents can pass work back and forth indefinitely — each handoff generating a full context window of tokens. Twenty-five handoffs between agents, each processing thousands of tokens, creates runaway costs that are invisible until your API bill arrives.

Best for: Dynamic tasks requiring natural back-and-forth collaboration — but only with strict handoff limits.

Patterns identified — now the failure modes

Four Ways Multi-Agent Systems Fail in Production

Choosing the right pattern is necessary but not sufficient. Every coordination pattern shares these failure modes — and each one can generate costs that dwarf your development budget if left unchecked.

Failure Mode 1
Infinite Replanning Loops

The supervisor agent is unsatisfied with a sub-agent's work and reassigns the task. The sub-agent returns a similar result. The supervisor reassigns again. Without a maximum iteration count, this cycle never terminates. Each iteration consumes a full LLM inference call — input tokens for the context plus output tokens for the new plan.

Failure Mode 2
Unbounded Handoff Chains

In swarm patterns, Agent A hands to Agent B, which hands to Agent C, which hands back to Agent A. The circular dependency creates an infinite loop with no natural exit condition. The system has no global view of how many handoffs have occurred — each agent only sees its own immediate context.

Failure Mode 3
Context Window Explosion

Every handoff accumulates context. The research agent's output becomes the writer's input, which becomes the evaluator's input, which feeds back to the researcher. After several cycles, the context window hits its limit. The system either fails silently (truncating critical information) or switches to a larger, more expensive model automatically.

Failure Mode 4
Tool Call Cascades

Agents calling external tools — APIs, databases, search engines — with each tool call costing time and money. A planning agent that generates five tool calls per step, across four agents, across three iterations, produces 60 tool calls from a single user request. If any tool returns an unhelpful result, the agent retries — compounding the cascade.

These four failure modes share a root cause: the absence of hard limits at every level of the architecture. The coordination pattern determines where failures occur. The limits you build determine whether they spiral.

The prevention framework — including planning systems, memory architecture, tool use safeguards, orchestration framework selection, and a prioritised 7-step implementation plan — is what stops these failures before they reach production.

Agent Planning Systems: The Control Layer That Prevents Runaway Loops

Without structured planning, agents skip critical reasoning steps, make poor tool choices, and produce unreliable outputs. Four planning methods exist — chain-of-thought, tree-of-thought, ReAct, and LLM Compiler — each with different trade-offs between token cost and reliability. Chain-of-thought increases token usage by 40–60% but catches errors that would otherwise cascade through the entire system...

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  • 4 planning methods with implementation guidance
  • Memory systems architecture (conversation, working, long-term)
  • LangGraph vs AutoGen framework comparison
  • 7-step prioritised action plan for production deployment
  • 18 source passages from 11 AI/ML books with page citations
  • Cohere reranking relevance scores for every source
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Frequently Asked Questions

What does agentic mean in AI?

Agentic AI means an AI system can pursue a goal by planning steps and taking actions, often using tools (browser, code, APIs, databases) with some level of autonomy, instead of only replying to a single prompt. OpenAI’s docs describe agents as systems that accomplish tasks and workflows, and NIST now explicitly refers to agents as AI capable of autonomous actions.

Is ChatGPT an agentic AI?

Sometimes yes — ChatGPT (standard chat) is mostly a conversational generative AI tool, but ChatGPT Agent is an agentic mode/capability because it can use tools, browse, and take multi-step actions on your behalf. OpenAI documents this directly.

What is the difference between generative AI and agentic AI?
  • Generative AI: creates content (text, image, code, audio) from prompts
  • Agentic AI: uses AI reasoning plus planning + tool use + action execution to complete goals

In simple terms: GenAI writes; agentic AI does (with guardrails). OpenAI’s agent docs support this distinction by emphasizing task completion and tool use.

What are agentic AI examples?

Examples of agentic AI systems:

  • Customer support agent that reads tickets, checks CRM, drafts replies, escalates edge cases
  • IT ops agent that investigates alerts, runs diagnostics, proposes remediation
  • Research agent that browses sources, summarizes findings, compiles a report
  • Sales ops agent that updates records, prepares outreach drafts, schedules follow-ups
  • Coding agent that reads codebase, runs tests, patches issues, opens PRs (with approval)
Is agentic AI LLM?

Not exactly. An LLM can be the “brain” inside an agent, but agentic AI = LLM (or another model) + memory/state + tools + planning + execution loop + controls. So an agent often uses an LLM, but they are not the same thing. OpenAI’s agent docs reflect this architecture distinction.

Who are the Big 4 AI agents?

There is no universally accepted “Big 4 AI agents” category. People use that phrase informally (sometimes meaning vendors, frameworks, or consumer assistants).

Is Tesla using agentic AI?

Tesla clearly uses advanced AI for autonomy/vision/planning. Whether you label it “agentic AI” depends on definition. In the broad sense (goal-directed autonomous action), you can argue yes in parts of autonomy/robotics; in the strict LLM-tooling enterprise-agent sense, that label is less exact.

What are the 4 main types of AI?

A common foundational classification is:

  • Reactive machines — no memory, immediate response only
  • Limited memory AI — uses past data/history; most modern ML systems fit here
  • Theory of mind AI — research/theoretical
  • Self-aware AI — hypothetical
Do we have agentic AI now?

Yes — early-to-maturing forms. We already have agentic systems that can plan, use tools, and perform multi-step tasks, but they still need guardrails, monitoring, and human oversight for reliability and security. OpenAI and NIST activity both reflect that this is a real, current category.

What are 7 types of AI?

There is no single standard list, but a common 7-type teaching list combines “functional” and “capability” categories:

  • Reactive machines
  • Limited memory
  • Theory of mind
  • Self-aware AI
  • ANI (Narrow AI)
  • AGI (General AI; not achieved)
  • ASI (Superintelligence; hypothetical)
What companies use agentic AI?

Many companies are piloting or deploying agentic workflows (support, coding, ops, analytics), but adoption varies by risk tolerance and governance maturity. Common categories:

  • Software / SaaS companies (support + coding agents)
  • Banks / financial services (analyst/copilot workflows, heavily controlled)
  • Retail / e-commerce (customer service + merchandising ops)
  • Telecom / IT operations (incident triage and remediation assistants)
  • Manufacturing / logistics (scheduling, monitoring, automation agents)
What country is #1 in AI?

Using major current rankings (e.g., Stanford AI Index / Vibrancy context), the United States is generally #1 overall in frontier AI/model leadership, while China is a very strong #2 and leads in some areas like publications/patents.

Agent Planning Systems: Four Methods That Control Execution

Without structured planning, agents skip critical reasoning steps. Four methods exist, each trading token cost for reliability.

Method 1
Chain-of-Thought (CoT)

The agent explains its reasoning step-by-step before acting. Adding "Think step by step" to prompts improves accuracy on complex tasks. The trade-off: CoT increases token usage by 40–60% because the model generates its reasoning as text before producing the answer.

Method 2
Tree-of-Thought (ToT)

Generates multiple possible reasoning paths, evaluates them, and explores the most promising ones. More thorough than CoT but exponentially more expensive — each branch is a full inference call. Best for high-stakes decisions where the cost of a wrong answer exceeds the cost of exploration.

Method 3
ReAct (Reasoning + Acting)

Alternates between reasoning about what to do and taking actions by calling tools. The cycle is: Thought → Action → Observation → Thought. This is the most common pattern for tool-using agents. The risk: if tools return unhelpful results, the agent retries the same action in a loop.

Method 4
LLM Compiler

Identifies independent tasks and executes them simultaneously rather than sequentially. If three sub-tasks don't depend on each other, they run in parallel. Reduces wall-clock time dramatically but requires careful dependency analysis — running dependent tasks in parallel produces wrong results silently.

Memory Systems: What Agents Remember and What They Forget

Without memory, agents forget conversations between each request. Every interaction starts fresh. Three memory types solve different problems.

Type 1
Conversation History

Stores recent messages so the agent can reference what was said. Simple but dangerous at scale — unbounded conversation history grows until it exceeds the context window, causing silent truncation of early messages. Keep only the most recent 10–20 messages.

Type 2
Working Memory

Temporary storage for intermediate results during multi-step tasks. The research agent's findings are stored so the writing agent can access them without re-researching. Summarise working memory when it exceeds 2,000–4,000 tokens to prevent context window bloat.

Type 3
Long-Term Memory

Persistent facts stored across sessions — user preferences, learned knowledge, past decisions. Implemented using embedding-based retrieval with a relevance threshold. The risk: outdated long-term memories cause agents to use wrong information. Implement data deletion on user request and regular pruning.

LangGraph vs AutoGen: Choosing Your Orchestration Framework

Building a multi-agent system from scratch means writing routing logic, state management, error handling, and recovery. Orchestration frameworks handle this complexity. Two dominate the space.

Framework 1
LangGraph — Graph-Based Orchestration

Models workflows as directed graphs. Nodes contain logic, edges control data flow. Supports conditional branching — different paths based on agent outputs. Built-in checkpointing saves state after each step, enabling resume after failures. Best for complex, deterministic workflows where you need precise control over execution order.

Framework 2
AutoGen — Message-Based Multi-Agent Dialogue

Focuses on conversations between agents. Agents communicate through message passing with dynamic role assignment. More natural for collaborative tasks where agents need to negotiate and iterate. Best for research and creative workflows where the execution path emerges from agent interaction rather than predetermined logic.

Decision framework: If your workflow has clear steps and conditions → LangGraph. If your agents need to collaborate dynamically → AutoGen. If you're uncertain, start with LangGraph — its explicit graph structure makes debugging easier when things go wrong (and they will).

Architecture covered — now the action plan

The 7-Step Implementation Plan

If you're building a production multi-agent system, implement in this order. Each step builds on the previous one.

Step 1
Map Your Task to the Right Coordination Pattern

Fewer than 5 specialists → supervisor. Teams of teams → hierarchical. Dynamic collaboration → swarm. The wrong pattern wastes weeks of development. Choose based on whether you prioritise simplicity, scale, or flexibility.

Step 2
Implement Hard Resource Limits Before Anything Else

Maximum iterations per agent (10–20). Maximum total handoffs in swarm systems (15–25). Maximum wall-clock time (5–10 minutes). Maximum token budgets. Without these, a single workflow can generate thousands of dollars in API costs before you notice.

Step 3
Choose One Orchestration Framework and Learn It Deeply

LangGraph for graph-based control. AutoGen for message-based collaboration. Don't split focus between frameworks — depth beats breadth when debugging production failures at 2am.

Step 4
Structure Agent Planning Prompts

Add "Think step by step" for chain-of-thought. Structure ReAct as "Thought, Action, Observation" cycles. Test planning prompts on diverse inputs and set iteration limits on every planning loop.

Step 5
Build Logging and State Persistence From Day One

Log every delegation decision, every handoff with reasoning, every tool call with parameters. Save state after each step using checkpointing. Without logs, debugging multi-agent failures is impossible.

Step 6
Implement Memory With Aggressive Trimming

Keep 10–20 recent messages. Summarise working memory at 2,000–4,000 tokens. Use embedding retrieval for long-term facts. Implement deletion on request. Balance memory richness against token costs.

Step 7
Sandbox and Validate All Tool Calls

Parameter validation before execution. Authorisation checks on every tool. Sandboxed code execution with no network access except approved APIs. Monitor tool usage patterns for anomalies. Unvalidated parameters create critical security vulnerabilities.

The bottom line: Multi-agent systems don't fail because the AI isn't smart enough. They fail because the coordination, limits, and safeguards were never built. Three patterns, four planning methods, three memory types, two frameworks — and hard limits at every level. That's the architecture that keeps a $50 workflow from becoming a $10,000 loop.

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