22 August 2026

AI agents became notably more capable around Christmas 2025

First reported

Latent Space ran this on .

  • AI agents, software that performs tasks independently without constant human instruction, started working significantly better around Christmas 2025.
  • The improvement came from two things happening at once: the underlying AI models reached a capability threshold while the systems controlling them matured.

How it was covered

Latent Spaceswyx & Alessio

AI agents started working noticeably better around Christmas 2025. The newsletter argues this wasn't solely due to model improvements but rather the confluence of model capability crossing a threshold while the harness (the system around the model) matured simultaneously, with their improvement curves finally intersecting at the right moment.