Fundamentals
What does AI Agent mean?
An AI agent is a software system that breaks a goal down into individual steps on its own, carries them out and checks the result. Unlike a classic chatbot it does not just answer questions, it acts: it calls tools, reads and writes data and triggers follow-up actions.
In a business context an AI agent takes over repetitive work – such as drafting quotes or capturing documents – while plugging into existing systems. Critical decisions stay with people, and every action is auditable.
Related terms
Agentic AI
AI systems that plan and execute multi-step tasks autonomously, rather than producing single answers.
Large Language Model (LLM)
An AI model trained on large amounts of text that understands and generates language.
Human in the Loop
A principle where people review and approve a critical decision made by an AI system.
Tool Calling
A model's ability to deliberately call external functions and systems.
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