What are AI Agents?

Marina Momina

5

mins read

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Imagine how transformative it would be if ChatGPT (or any LLM) could not only generate text but also autonomously complete complex, multi-step workflows by leveraging external tools and data sources. Picture an AI that could do more than draft an email—it could coordinate project schedules by analyzing team calendars, generate actionable insights by integrating with your internal analytics platform, or even troubleshoot and deploy software after writing the code, all without requiring step-by-step instructions. This is the promise of agents: ushering in a new era of AI that moves from passive assistance to proactive autonomy.

What Are Agents?

LLMs like ChatGPT primarily generate text-based output. Agents, however, are specialized AI systems designed to perform tasks autonomously by combining reasoning, decision-making, and action-taking. They use LLMs as reasoning engines to decide what actions to take next, often leveraging tools—capabilities beyond simple text generation. An example of such a tool is internet search.

Let’s consider a more dynamic scenario: Suppose you ask your AI assistant, “Summarize the Q4 sales trends and suggest strategies to improve our weakest-performing region.” A simple LLM might provide generic advice, but an agent can go further. It could query your internal sales database, analyze performance metrics, identify the weakest region, and generate a tailored report with actionable strategies based on historical data. This is just the beginning of what agents can achieve with access to multiple tools, including proprietary company data and external APIs.

A concrete example is the Knowron Agent. This system leverages the Knowron search engine to algorithmically retrieve and analyze information from the user’s internal data repositories. For instance, when prompted, the agent determines whether to retrieve relevant data or generate a report. If a search is required, it extracts and processes the results to deliver fact-based responses. With its chatbot interface, the Knowron Agent also supports follow-up questions, integrates user feedback, and synthesizes data for comprehensive reporting—providing an intelligent and reliable knowledge retrieval solution.

How Agents Work

At a high level, agents operate in a loop of four key steps:

  1. Understanding the Task: The agent interprets the user’s request, identifying the ultimate goal and context.
  2. Planning Actions: The agent devises a series of steps to achieve the goal, which may involve querying databases, using APIs, or interacting with external systems.
  3. Executing Actions: The agent autonomously carries out the planned steps using tools and systems, updating its approach as necessary.
  4. Feedback and Adaptation: Agents evaluate the outcomes of their actions, adjusting their plans dynamically to ensure successful task completion. Many systems also allow users to provide direct feedback for further refinement.

How Are Agents Different from Vanilla ChatGPT?

Vanilla ChatGPT excels at generating natural language responses but operates within the scope of the input provided. Agents, on the other hand, are designed to act:

  • Tool Usage: Agents can connect to external systems, such as APIs, databases, or CRMs, to perform complex tasks that require more than language processing. This enables real automation of multi-step workflows.
  • Autonomy: Agents require minimal human intervention. They can plan and execute end-to-end workflows, such as analyzing supply chain data, identifying bottlenecks, and recommending solutions.
  • Adaptability: While ChatGPT is reactive, agents are proactive. They handle unexpected outcomes, reassess scenarios, and modify their approach to meet objectives.

For instance, if you asked vanilla ChatGPT to draft an email proposal, it could generate the text for you. An agent, however, would draft the email, check your availability, coordinate with the recipient’s calendar, and send the finalized proposal—all without requiring additional input.

Agents in Action: Real-World Applications

The rise of agents has driven innovation across industries. Here are some compelling examples:

1. Mechanical Engineering and Manufacturing

Agents can optimize maintenance schedules by analyzing machine performance data, predict equipment failures, and recommend preemptive actions. They can also streamline quality control by analyzing sensor data in real-time, ensuring consistent manufacturing outcomes.

2. Food and Beverage Processing

In this industry, agents can monitor production lines, detect anomalies, and adjust parameters to ensure compliance with safety standards. They can also assist in inventory management by predicting raw material needs based on production schedules and historical data.

3. Utilities and Energy Management

Agents can analyze grid performance, predict energy demands, and automate responses to fluctuations in usage. For utilities companies, they can also streamline operations by managing outage reports and optimizing resource allocation during emergencies.

4. Supply Chain and Logistics

Agents can enhance supply chain efficiency by analyzing shipping routes, predicting delays, and providing real-time updates to stakeholders. They can also automate procurement by integrating with vendor systems to manage inventory and reorder supplies as needed.

5. Field Service Operations

In industries with deskless workers, agents can assist technicians by providing instant access to repair manuals, diagnosing equipment issues, and even suggesting solutions based on historical repair data. This reduces downtime and improves operational efficiency.

Conclusion

Agents represent the next evolution in AI, moving beyond conversational models to systems capable of reasoning, autonomy, and dynamic action. By integrating tool usage, self-adaptation, and proactive workflows, agents unlock unprecedented levels of efficiency and problem-solving across industries. From managing complex business operations to personalizing consumer experiences, agents are poised to redefine what’s possible in AI. The future isn’t just about answering questions—it’s about autonomously solving problems. And agents are leading the charge.

Marina Momina

NLP Engineer

About the author

.Fun fact: She learned to ride a bike just two months ago (it's never too late!)

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