The word agent sells right now, so a lot of older software is getting a new label. Agent washing is that relabeling. The buyer thinks they're getting something that plans and acts. They're often getting a chatbot with a workflow behind it.
Why it matters
You pay more for less, and you take on risk you didn't sign up for. If a vendor calls a fixed script an agent, they may also gloss over how it handles your data or what it can reach.
How to spot it
Ask what the product does when the task changes mid-way. A real agent adapts. A script fails.
Ask for the agent's identity and its logs. Real agents can be named and traced.
Ask what it can reach on its own, and what a human still has to approve.
Check whether you already own the same automation under a different name.
If the answers are vague, you're likely looking at automation with a new coat of paint.