What it is
An AI agent is a program that pursues a goal over several steps on its own. It uses a language model to decide what to do next, carries out that step with a tool, looks at the result and continues until the goal is reached or it has to stop.12
How it works
- Goal. A person or another system sets the task, for example “find three suppliers and request quotes”.
- Plan. The model breaks the goal into steps.
- Act. It calls a tool: searches the web, opens a file, fills in a form, sends a message. Tool access is increasingly standardised, for example through the Model Context Protocol.4
- Observe. It reads what came back.
- Check and repeat. It decides whether the step worked and what comes next.
Agent, chatbot, automation
| Chatbot | Classic automation | AI agent | |
|---|---|---|---|
| Decides next step | No | No, fixed rules | Yes |
| Uses tools | Rarely | Yes, pre-defined | Yes, chooses itself |
| Handles surprises | Answers only | Stops or fails | Tries another way |
| Predictability | High | Very high | Lower |
What businesses use it for
- Research and preparing documents from many sources.
- Sales support: finding contacts, drafting first messages for a person to approve.
- Back office: sorting emails, updating records, reconciling lists.
- Software development: writing, testing and fixing code.
Risks
- Mistakes add up. A small error early on can lead to many wrong steps.
- Prompt injection. Text on a web page or in an email can contain hidden instructions the agent follows.3
- Too many rights. An agent that may pay, delete or send can do real damage.
- Cost. Every step uses the model; long tasks become expensive.
Introducing agents safely
- Give it only the rights the task needs.
- A person approves anything that cannot be undone: payments, deletions, messages to customers.
- Set spending and time limits.
- Log every action so it can be traced.
- Start with one narrow task and measure the result.
Key terms
- Tool call
- The moment the agent uses an external function, for example a search or an email.
- MCP
- Model Context Protocol, an open standard for connecting models to tools and data.4
- Human in the loop
- A person approves certain steps before they happen.
- Prompt injection
- Hidden instructions in content the agent reads.3
Latest research
New papers and reports that mention this term, found by our daily source scan. One line per source, quoted as published.