AI agent

Definition

An AI agent is a program that pursues a goal on its own: it decides which steps to take, calls tools or APIs to take them, checks the result and repeats until the goal is reached or it hands over. Unlike a chatbot it acts, rather than only answering.

An agent combines a language model for judgement with tools for action — a database query, an API call, a document generator. The model chooses the next step, the tools carry it out, and the outcome is fed back so the agent can correct course.

Reliability comes from constraints, not from the model alone: a narrow scope, validated inputs, a fixed toolset, logging of every action and a rule for when to stop and ask a human.

In practice

  • Plans, acts and verifies in a loop instead of producing a single answer
  • Needs explicit tool permissions and an audit trail for every action
  • Performs best on one clearly bounded domain per agent
Read the full articleWhat is an AI agent? And how is it different from a chatbot?AI agent, chatbot, assistant and copilot mean different things. Here is the difference in plain language, with real business examples.

Related terms

Back to the glossary