Agent
- Definition
- An AI system that can autonomously plan, use tools, and execute multi-step tasks on behalf of a user. Agents are the next major product paradigm after chatbots, with every major lab shipping agent frameworks.
- Why it matters
- Chatbots answer questions; agents do work. That distinction is worth trillions in enterprise value. When an AI can browse the web, write code, call APIs, manage files, and iterate on its own output, you move from 'helpful assistant' to 'autonomous employee.' The companies that figure out reliable agent architectures will capture the automation budgets currently locked in BPO contracts and manual SaaS workflows. But agents also introduce new risk surfaces: a hallucinating agent with tool access can cause real-world damage, making guardrails and human-in-the-loop oversight non-negotiable for production deployments.
- In practice
- Anthropic's Claude can now operate a computer directly, clicking buttons and filling forms like a human. OpenAI shipped Operator, which browses the web and completes tasks like booking restaurants. In the open-source world, frameworks like LangGraph and CrewAI let developers build multi-agent systems where specialized agents collaborate. Cognition's Devin, an AI software engineer, raised $175M in 2024. The common pattern: agents that can reliably complete 10-step workflows are shipping, while 100-step autonomy remains fragile.
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Related terms
Tool use
The ability of an AI model to invoke external tools, such as web search, code execution, or database queries, to augment its capabilities. Tool use transforms models from knowledge stores into action-taking agents.
Function calling
A model capability that lets the AI output structured tool invocations (API calls, database queries, etc.) rather than plain text. Function calling is what turns a chatbot into an agent that can take real-world actions.
Agentic workflow
A multi-step process where an AI agent plans, executes, evaluates, and iterates on tasks with minimal human intervention. Unlike single-turn prompts, agentic workflows involve loops, branching logic, and tool calls that unfold over minutes or hours.
Human-in-the-loop (HITL)
A design pattern where a human reviews, approves, or corrects AI outputs before they take effect in the real world. HITL balances AI automation benefits with human judgment for high-stakes decisions.
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