AFM- Active Fuel Management. It's when four of the eight cylinders shut down (V4 mode) to help increase fuel economy. The engine has to have a relatively low amount of load on it for it to activate- cruising on flat highway (or a steady decline), no headwind, steady throttle input, etc. Your driving habits and conditions dictate how much it's activated and if it does any good. Aside from those that live in flat, wide-open desolate places, it's more of a hindrance because almost as soon as you get to a steady cruise in V4 mode, you have to accelerate again or apply more throttle to maintain speed going up even the slightest incline. There's usually an ominous lag that's felt before it switches back to V8 mode.
All that's just the operation of it. The REAL problem is that the special lifters used on those four AFM cylinders are more complex than standard lifters and they are commonly known to fail. The symptoms/damage ranges from a misfire and no compression on a cylinder (usually repairable) to wiped-out cam lobes(s)/metal all throughout engine/scored bearings.
You can plug in a Range module that keeps the PCM from activating AFM and this is far better than nothing. Another option is to get tune, either from a handheld tuner or a custom tune and have it deactivated as one of the tuning parameters. If I were just gonna disable it electronically, I'd go this route over the Range because I could tune for other things for about the same or little more cost. The best way is to replace the AFM components with the non-AFM parts as if it came from the factory with no AFM. You can use all readily available OEM parts for this. It's also a perfect time to upgrade the cam for a little more power at a minimal extra cost. There are "kits" that contain everything needed to mechanically delete AFM. A tune will be needed afterwards to turn off AFM in the PCM's programming and to tune for the upgraded cam, if installed.
The AFM failure seems to be one of those "not if it happens, but when it happens" things. It might not happen in 80-, 100-, 150- or 200,000 miles. But it seems the risk elevates exponentially the higher the mileage. My opinion is that AFM is what made the LS engine go from a 300,000-mile engine to a 150- to 200,000-mile engine. The sooner you remove it, the better.