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What is an AI agent?

Understand an AI agent as a model-driven system that observes context, chooses actions, and works toward a goal.

Plain-English definition

An AI agent is a system that uses a model to choose steps toward a goal while interacting with tools, data, or an environment. The model is one component; instructions, state, permissions, tools, stopping rules, and evaluation determine what the system can actually do.

Memory trick: An agent is a model inside a controlled loop.

Why it matters

Calling every model workflow an agent hides important design choices. A controlled agent can be useful when the path is uncertain, but it also creates more calls, more state, and more ways to fail than a fixed workflow.

Simple example

A research assistant receives a question, searches approved sources, extracts evidence, asks for clarification when necessary, and drafts a cited answer. It cannot send messages, change records, or access sources outside its allowlist.

Example figures are illustrative calculations, not current quoted market prices.

Current example

Source material

Anthropic: Building effective agents

Primary guidance on simple workflows, tool use, orchestration, and adding autonomy only when it creates measured value.

Common mistake

An agent is more than a smarter prompt. It is a system with tools, state, permissions, and failure handling; adding a loop changes cost and risk.

Practical takeaway

What you can do with this

Draw the proposed agent as model, instructions, tools, state, environment, and evaluator. Mark which actions are read-only, reversible, or irreversible before building.

Decision check: can you explain what the agent may do, what stops it, and how a human can inspect the result?

Compute College learning path

AI Engineering

Step 27 of 48: What is an AI agent?