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What is an AI agent?

An AI agent, also called an LLM agent or autonomous agent, is a system that can pursue a goal by deciding what to do next, taking actions, and using the results to keep going.

Why it matters

Most AI systems just answer a prompt once. An agent is useful when one answer is not enough and the system needs to act over multiple steps: search, call tools, inspect results, retry, and stop when the goal is met.

You’d reach for an agent when the task is:

In practice, many teams start with plain prompting or retrieval before moving to agents, because agents are more complex and easier to get wrong.

How it works

At a high level, an agent combines three things:

  1. A goal or task

    • For example: “Book the cheapest flight that meets these constraints.”
  2. A decision loop

    • The model looks at the current state, decides what action to take, then observes the result.
    • This can repeat until it finishes, hits a limit, or asks for help.
  3. Tools or actions

    • These might include search, databases, calculators, code execution, ticketing systems, or browser actions.
    • The agent does not just “know” everything; it can query and act.

A common pattern is: think → act → observe → repeat.
In LLM-based agents, the language model often serves as the controller that chooses the next step. The exact architecture varies across products and papers, and “autonomous agent” is not a single formal standard term.

Tiny concrete example

User: “Find the latest docs for our payment API and draft a support reply about refund timing.”

Agent loop:

  1. Search internal docs
  2. Open the refund policy page
  3. Read the relevant section
  4. Draft the reply
  5. Check whether the answer is complete
  6. Return the draft

A simple pseudo-flow:

goal: answer refund timing question

observe: user request
action: search_docs("refund timing")
observe: policy says refunds post in 3-5 business days
action: draft_reply(...)
result: support response ready

Common pitfalls / when NOT to use it

Related terms

Related terms

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