Markov Chains, MDPs, and Memory-Augmented MDPs: The Mathematical Core of Agentic AI
Markov Chains, Markov Decision Processes (MDP), and Memory-augmented MDPs (M-MDP) form the mathematical backbone of decision-making under uncertainty. While Markov Chains capture stochastic dynamics, MDPs extend them with actions and rewards. Yet, real-world tasks demand memory—this is where M-MDPs shine. By embedding structured memory into the agent’s state, M-MDPs enable agentic AI systems to reason, plan, and adapt across long horizons. This blog post explores the mathematics, technicalities, and the disruptive role of M-MDPs in modern AI architectures.