Beetroot Tech Glossary
Glossary

Check out our explainers covering the latest software development, team management, information technology, and other tech-related terms and concepts.

What is an AI Agent?

An AI agent is a subtype of AI-powered software that autonomously performs tasks and makes decisions based on specific goals. It differs from automation tools and simple chatbots, as the definition of an AI agent implies that the system is more independent, goal-oriented, and adaptable to the environment. AI agents can perform more complex tasks that go beyond automating processes and text generation, including contextual reasoning and decision-making.

The Role of AI Agents in Modern Software

By integrating an AI agent architecture, tech companies can implement advanced functionality such as multi-step automation. An agent in an artificial intelligence system makes decisions based on context awareness and continuously improves by learning from previous outcomes.

Instead of automating separate tasks, AI enables software providers to build systems with greater autonomy. It minimizes the role of humans in routine tasks, allowing them to focus on specifying problems and training the model.

Another way agents function in AI software is multi-agent systems. Agentic AI systems development involves multiple AI agents interacting through communication, specialization, and coordination frameworks. They break complex problems into smaller, manageable operations to solve more comprehensive tasks, such as business intelligence. Find more about the common tasks of AI agents in the table below.

Application AreaRole of AI AgentOutcome
Customer supportProcesses, categorizes and answers or redirects inquiriesImproved response times and user experience
Workflow orchestrationCoordinates tools and other AI agentsAbility to perform complex tasks and comprehensive automation
Data analysisTurns raw data it into instructions Autonomous decision-making that relies on real-time data
MarketingSegments target audiences and creates customized campaignsPersonalized and automated marketing strategy
DevOpsMonitors infrastructure, flags issues, and automates updatesMore reliable and stable system with proactive maintenance

How AI Agents Work

To better understand what is an agent in AI, let's break down how it works. Although the workflow varies in each case depending on the characteristics of the intelligent agent, the typical process looks as follows:

  1. Perception. Collects data from environment interactions, user inputs, or the system, turning it into structured information.
  2. Reasoning. Uses models or rules to interpret data and plan optimal actions in line with specified goals.
  3. Action. Executes tasks or triggers the required processes according to the plan and captures the results.
  4. Feedback loop – Learns and adapts from the results for reinforcement learning and continuous self-improvement. The agent keeps past interactions in memory to achieve an optimal behavior in the future.

Key Benefits of Using Intelligent Agents

AI agents enable companies to implement complex automations. They can manage unpredictable situations that require reasoning and are easy to integrate with existing software. Moreover, AI agents are highly convenient for end-users. People can direct them with natural-language instructions, which facilitates adoption and makes staff more willing to use the systems. Here's a concise summary of these and other AI agents' benefits:

BenefitDescriptionBusiness Impact
AutonomyHas high autonomy and requires minimal interventionReduced manual effort and time to complete routine tasks
AdaptabilityLearns from previous results and self-improvesHigher accuracy and dynamic response to changes
Contextual awarenessConsiders multiple data sources to make decisionsMore relevant insights
Reduced costsAutomates repetitive tasksLower labor costs

Challenges and Solutions for AI Agent Implementation

The success of AI implementation significantly depends on readiness. Therefore, the company must adopt use and security policies and organize employee training beforehand. Cases of unauthorized access to systems or sharing private information are common and require proactive management, just like other challenges:

  • Complex integration → Map data sources, use integration platforms with robust APIs, and implement automation gradually.
  • Low data quality → Evaluate data quality before implementation and ensure clean, structured input data.
  • Ethical and safety risks → Establish human oversight, security policies, and safeguards.
  • Need for performance monitoring → Run continuous evaluation to prevent AI model drift or misalignment.

Real-World Use Cases of AI Agents

The use of an AI agent largely depends on its type and the tasks it performs. Agents based on large language models (LLMs) handle reasoning, natural language understanding, and planning using general-purpose data. Domain-specific models focus on specific tasks, such as sentiment analysis in customer reviews. Here are a few intelligent agents examples to give more practical insights into what is an intelligent agent.

  • Software engineering teams integrate AI agents to automate infrastructure monitoring and updates, improving operational stability.
  • Smart heating providers use AI agents to gather data from sensors and the environment, and to decide whether to turn heating on/off based on custom user settings.
  • E-commerce companies analyze customer behavior, purchase history, and browsing patterns using AI to increase upsales with more relevant recommendations.

Summing Up AI Agent Definition and Uses

The primary characteristics that define an agent in AI are contextual reasoning, autonomous decision-making, and continuous learning. AI agents offer the next-level automation of complex tasks by evaluating multiple factors each time they make decisions and learning from feedback. Human users are involved only to specify instructions and review the results. AI implementation brings considerable benefits to software systems, making them more autonomous and scalable, and helps businesses significantly optimize performance.

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