The engineering bottleneck migrates up the abstraction stack as model capability improves: from code/hallucinations, to plans and product definition, to a persistent memory and compounding-knowledge system. Each solved layer exposes the next constraint rather than eliminating work.
Tells architects where to invest next: once codegen and planning are adequate, the marginal returns move to persistent context infrastructure rather than better prompting or bigger models.
For any agentic system, expect the binding constraint to shift from execution → decision-making → context/state persistence as capability improves; instrumentation should track which layer is currently binding.
Two years ago, code and hallucinations were the bottleneck
As code quality improved, making plans and deciding what to build became the bottleneck
To avoid repeating instructions, a persistent memory and compounding knowledge system was required