Why Do LLM Chatbots Still Lose the Conversation After a Few Turns?

LLM-powered chatbots have improved dramatically, but maintaining a useful conversation over many turns still seems surprisingly difficult.

Once conversations become longer, we often start seeing problems such as:

I’m curious how people here are handling conversation memory in production AI assistants.

Are you mainly using:

And perhaps more importantly: how do you evaluate whether an AI assistant actually remembers the right information rather than simply remembering more information?

Would love to hear what architectures or Hugging Face models/tools people are successfully using in production.