Research in multiagent systems (MAS), or distributed artificial intelligence (DAI), dates back to the late 1970s. Initial work in the area focused on distributed interpretation of sensor data, organizational structuring and generic negotiation protocols. But several recent developments have helped reshape the focus of the field. Like the rest of Al, the field has matured from being largely exploratory in nature to focusing on formal theories of negotiation, distributed reasoning, multiagent learning and communication languages. The field is also maturing to the point of developing its first few fielded applications. The recent widespread interest in the Internet, the World Wide Web, and intelligent agent applications have further fueled the need for techniques and mechanisms by which agents representing users can interact effectively with other agents in open, dynamic environments. The development of several new international workshops and conferences has helped focus research in the area. The field is poised at a critical juncture, with stimulating problems and challenges promising some very exciting developments in the next few years.