Glossary · AI

What is AI Agent?

Definition

An AI agent is software that uses a large language model to work toward a goal by deciding which actions to take, calling tools such as APIs, databases or search, and using the results to choose the next step. Unlike a chatbot that only replies, an agent can act in other systems, within the permissions and limits its builders give it.

Why it matters for your business

Agents can handle work that does not follow a fixed script, such as triaging a support ticket, researching a lead or reconciling a record that does not match. That flexibility is also the risk: an agent can take a wrong action as confidently as a right one. Buyers should look at which tools the agent has, which actions need human approval, how its decisions are logged, and how it is tested before changes go live. Narrow agents with a clear job and limited permissions are easier to trust and maintain than general-purpose ones.

Example

A home services company deploys an AI agent on its website and text line. When a customer asks for a furnace repair, the agent checks the service area, asks qualifying questions, looks up open slots in the scheduling system, books the appointment and sends a confirmation. If the customer mentions a gas smell, the agent stops and routes the conversation to a person immediately.

Next steps