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Glossary · AI building blocks

AI agent

Also called LLM agent, agentic AI.

Definition

Software where a language model decides which steps to take and which tools to call, in a loop, to reach a goal.

Last updated

What it is.

An agent gives an LLM a goal, a set of tools and a loop. At each step the model looks at what it has so far, picks a tool to call, such as search, a database query or sending a message, reads the result and decides what to do next, until it finishes or hits a limit.

The difference from a fixed workflow is who decides the path. In workflow automation, a person designs the steps in advance. In an agent, the model chooses them at run time. Many real systems are a mix: a fixed workflow with one agent step where judgment is needed.

Why it matters

Agents can handle tasks where the steps vary from case to case, such as researching a request, triaging a ticket or reconciling records across systems. That flexibility costs predictability: more model calls per task, more ways to fail and more need for guardrails, logs and human review on actions that matter.

Watch out

Common mistakes.

  1. 01

    Using an agent where a fixed workflow would do. If the steps are always the same, write them down.

  2. 02

    Giving the agent broad permissions. Scope each tool to the least access it needs.

  3. 03

    No step limit or budget. A confused agent can loop and run up cost.

Tools

Work it out with a tool.

Related

Related terms.

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