Knowledge Bank · AI & GenAI

What Are AI Agents?

By Karthick Selvam · Published

An AI agent uses a language model to decide which actions to take, such as calling tools or APIs, in order to complete a goal.

Definition

Unlike a single prompt and response, an agent runs a loop: it reasons about the goal, chooses a tool, observes the result and decides what to do next until it finishes.

Building blocks

A model, a set of tools (search, database queries, APIs, code execution), instructions, memory or state, and guardrails.

Enterprise uses

Common uses are support triage, research assistants, data analysis helpers, IT operations runbooks and workflow automation with human approval steps.

Risks

Agents can take wrong actions, loop, or be manipulated by malicious content (prompt injection). Limit permissions, log actions and require approval for sensitive steps.

Frequently asked questions

Are agents ready for production?

Narrow, well-scoped agents with strong guardrails are used in production. Fully autonomous broad agents remain risky.

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