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ai-agent-definition.md

(in about 291 words)

What’s an AI Agent?

An AI agent is a system that can:

  • Understand user input (text, image, audio, and other queries)
  • Retrieve relevant information (documents or structured data)
  • Generate intelligent responses (using LLMs like OpenAI or Hugging Face models)
  • Perform actions (calling APIs, fetching live data, executing functions)

Understanding AI Agents

AI agents are autonomous systems that leverage large language models (LLMs) to make decisions and solve complex tasks. They interact with their environment using:

  • Tools
  • Memory
  • Reasoning

What Makes an AI Agent

An AI agent is more than a chatbot. It actively plans, selects the right tools, and executes tasks to achieve goals. Unlike traditional software, it adapts to new information and continuously refines its approach.

Key components of an AI agent:

  • LLM as the Brain
    The core of the agent is an LLM, which understands context, processes natural language, and serves as the central intelligence.

  • Tools for Interaction
    Agents connect to external tools, APIs, and databases to gather information and take action.

  • Memory for Context

    • Short-term memory: Tracks ongoing conversations.
    • Long-term memory: Stores knowledge for future interactions.
  • Reasoning and Planning
    Agents break down complex problems, generate step-by-step action plans, and adapt based on feedback and new data.


How AI Agents Work

  1. The process starts with a prompt that defines the agent’s role and goals.
  2. The agent decides when and how to use its tools.
  3. It gathers data, reasons through problems, and iterates using loops of reasoning and action.
  4. It evaluates progress and adjusts its strategy to achieve better outcomes.

Example Use Cases

  • Customer Service Agent: Answers queries using a knowledge base. If the answer isn’t available, it fetches real-time data, summarizes it, and responds.
  • Coding Assistant: Understands project requirements, suggests solutions, and even generates code.