AI Agent

An AI Agent is a sophisticated software entity capable of perceiving its environment, reasoning about how to achieve a goal, and taking actions to accomplish it. It acts as the functional unit of "agency" in modern AI systems.

While a standard LLM generates text based on probability, an AI Agent uses that LLM as a "cognitive engine" to:

• Reason: Determine the optimal path to a solution given current constraints.
• Act: Execute code, search the internet, or modify database records.
• Observe: Analyze the feedback from its actions and dynamically adjust its plan.

Agents are the fundamental building blocks of Agentic AI systems, enabling software to operate with a degree of independence previously reserved for human operators.