AI Agent
An AI agent is a system that takes a goal, breaks it into steps, and executes those steps autonomously—calling tools, reading results, adjusting course—without a human approving each action. Where a chatbot waits for your next prompt, an agent decides what to do next on its own. The concept borrows from reinforcement learning and robotics, but the current wave runs on large language models that can reason about which tool to use when. Agents are powerful when the task has clear success criteria and bounded risk. They are dangerous when the goal is vague, the environment is unfamiliar, or the cost of a wrong action is high. Most production agent systems today still need tight guardrails and human checkpoints—full autonomy remains more demo than reality.
Related terms:
RAG (Retrieval-Augmented Generation)
Retrieval-augmented generation (RAG) links a large language model to external documents, databases, and APIs so it retrieves relevant, up-to-date context at...
Custom AI vs. SaaS AI
SaaS AI is a ready-made vendor model—like ChatGPT Enterprise—fast to deploy but constrained by the vendor’s architecture and roadmap.
Agentic AI
Agentic AI refers to systems that autonomously pursue goals—planning actions, employing tools, and adapting based on feedback—without waiting for human...