AI Agent

AI Agents

What is an AI Agent? Why would I want to use one? Do we need LLMs for an Agent?

Julia Yukovich

CEO & Founder

May 1, 2025

What is an AI agent and what keywords do we need to understand?

In the context of machine learning and AI, an AI agent refers to an entity capable of acting autonomously or semi-autonomously within an environment to achieve specific goals. The agent can interact with its environment, process information, and take actions based on its learning or predefined rules. It can also adapt to changes and improve its behavior over time through processes such as reinforcement learning.

The key words in this context include:

  1. Agent: The main entity that takes actions to achieve objectives.
  2. Reinforcement Learning: A type of machine learning where an agent learns by interacting with an environment and receiving feedback in the form of rewards or penalties.
  3. Autonomous: The agent's ability to make decisions and take actions independently, often without human intervention.
  4. Proxy: A mediator that represents the agent in interactions with other systems, like an assistant or tool that facilitates tasks.
  5. Action: The specific steps an agent takes to influence its environment or achieve goals.
  6. Memory: The ability of an agent to retain and utilize information from past experiences to improve decision-making.
  7. Planning: The process through which an agent develops strategies or sequences of actions to achieve its goals.
  8. Evaluation: The agent's ability to assess its actions and outcomes, often used for improvement and learning.
  9. Multi-agent systems: Systems where multiple agents collaborate or interact to solve complex problems together.

The distinction between types of agents, such as autonomous agents (which make decisions independently) and proxy agents (which assist by acting on behalf of the user), is also crucial. This variability in autonomy and decision-making ability defines how AI agents operate and interact with users and environments.

Why would we want to us an AI agent and what can they do?

AI agents offer a wide range of benefits across different domains, making them highly valuable in various fields of software development and automation. Here's why they are so compelling:

  1. Automation and Efficiency: AI agents excel at automating tasks, allowing users to offload repetitive or time-consuming activities. This not only saves time but also reduces human error, ensuring more consistent and reliable outcomes. Tasks that once required manual intervention, such as data collection, processing, and reporting, can now be performed automatically by AI agents.
  2. Task Planning and Iteration: AI agents can break down complex tasks into smaller, manageable sub-tasks. They use task planning and iteration to continuously refine their approach, ensuring that even multifaceted or evolving goals are handled effectively. For example, an agent might assess a goal, execute steps towards it, evaluate the progress, and then decide if further action is required, adjusting its strategy if necessary. This makes them ideal for long-term projects that require careful attention to detail and multiple adjustments over time, such as AutoGPT.
  3. Increased Trust and Reliability: With proper feedback loops and evaluation systems, agents can become more reliable over time. While trust in fully autonomous agents might be challenging due to their decision-making autonomy, non-autonomous agents can still provide significant benefits in managing tasks and processes, especially when the agent's behavior is guided and adjusted based on human input. This reliability is enhanced by the transparency of how decisions are made, improving user confidence in the technology.
  4. Natural Language Interaction: The rise of AI agents also represents a shift in how we interface with software. Rather than relying on traditional user interfaces (UIs) or APIs, AI agents can communicate through natural language, enabling users to interact with complex systems more intuitively. For instance, rather than needing to write complex code to query a database, a user can simply ask the agent in plain language, "What were last year's sales?"
  5. Collaboration and Multi-Agent Systems: AI agents can work together in multi-agent systems, where specialized agents handle specific tasks and collaborate to achieve a common goal. This allows for parallel processing of different tasks, improving speed and efficiency. For example, one agent could focus on writing code while another runs tests, all coordinated through a central controller.
  6. Empowered Decision-Making: With built-in reasoning and evaluation capabilities, agents can make smarter decisions, assess the outcomes of their actions, and adapt their strategies as needed. This dynamic decision-making makes them particularly useful for handling complex, evolving situations where static rule-based systems would struggle.
  7. Seamless Integration with Existing Tools: AI agents are not just standalone systems but are increasingly able to interact with other tools, APIs, and even other agents. This integration means they can be used in a wide range of applications, from automating business processes to developing software. For example, agents can use third-party APIs to gather information, format data, and even generate reports, all through a natural language interface.
  8. Scalability and Flexibility: As software development continues to evolve, the need for tools that can scale with user demands grows. AI agents are highly adaptable and can handle tasks ranging from simple automation to more complex processes, making them an integral part of modern software architectures.

In short, AI agents represent a major shift in how tasks are automated, how software is developed, and how humans interact with technology. They bring efficiency, autonomy, and intuitiveness to the forefront of AI applications, making them powerful tools in a wide array of fields from software development to business automation.

The key benefits of using AI agents include:

  • Task automation and process efficiency
  • Better decision-making through reasoning and planning
  • Enhanced natural language interfaces for more intuitive user experiences
  • Collaboration through multi-agent systems for handling complex tasks
  • Increased reliability through feedback and evaluation loops

Why Do We Need LLMs for AI Agents?

In the context of AI agents, LLMs and prompt engineering play a central role in enabling these agents to interact effectively with users and execute complex tasks autonomously or semi-autonomously. Here's a breakdown of why LLMs and prompt engineering are vital for AI agents:

Why Do We Need LLMs for AI Agents?

  1. Generative Capabilities for Autonomous Task Execution:LLMs, particularly those based on GPT architectures, are essential for AI agents because they can generate human-like responses and actions based on textual input. For an AI agent, whether it's assisting with customer service or carrying out technical tasks like generating code or reports, LLMs provide the generative foundation needed for the agent to make decisions, iterate on tasks, and interact with users. The generative power of LLMs allows AI agents to carry out dynamic and context-sensitive tasks, making them more versatile and capable of handling a wide range of goals.
  2. Task Planning and Reasoning:AI agents often require the ability to reason through tasks, plan actions, and evaluate outcomes. LLMs, particularly when used with chat completion models, allow agents to reason and plan by generating sequences of steps to complete a given task. For instance, an AI agent might break down a complex goal (like automating a report) into smaller tasks (e.g., gather data, format it, create charts, and write a summary) using an LLM’s reasoning abilities. This makes LLMs essential for handling tasks that require iteration, re-planning, and adapting to new information as the task progresses.
  3. Natural Language Interface:One of the most powerful features of LLMs is their ability to understand and generate natural language. This is crucial for AI agents because it enables human-agent interactions to happen seamlessly. With LLMs, AI agents can process natural language inputs, interpret them effectively, and generate understandable responses, instructions, or actions. This capability is important when agents are interacting with humans, whether for customer support, personal assistants, or more complex decision-making roles. Natural language interfaces make it easy for users to interact with AI agents without needing technical knowledge.
  4. Context-Awareness and Adaptability:AI agents need to be contextually aware and adapt their responses based on the user's inputs. LLMs, with their ability to handle context and maintain conversation history, enable agents to remember previous interactions and refine their behavior over time. This adaptability allows AI agents to adjust their strategies based on feedback, improving their ability to handle long-term, iterative tasks, such as project management or continuous problem-solving.
  5. Multi-agent Systems:In more complex use cases, multi-agent systems require several agents to collaborate or work autonomously on different aspects of a task. LLMs are crucial in these environments because they allow each agent to communicate, share information, and make decisions based on the shared context. For example, a coding agent might interact with a testing agent to write code and run unit tests. The LLM-based agents can autonomously coordinate tasks, which is essential for creating efficient multi-agent systems.

Why Is Prompt Engineering Important for AI Agents?

  1. Directing Agent Behavior:Prompt engineering plays a significant role in guiding the behavior of AI agents. By carefully designing prompts, you can control the actions and decisions an agent makes. For example, if you're building an AI agent to automate report generation, you would need to craft a prompt that guides the agent through the process, ensuring it knows how to gather data, organize it, and create the report. Effective prompt engineering ensures that the agent acts according to your intentions, making it essential for achieving consistent and reliable results.
  2. Ensuring Task Completion:Many tasks performed by AI agents require multi-step processes or iterative refinement. Prompt engineering is crucial for breaking these tasks into smaller subtasks and ensuring that the agent handles each step in the correct order. For example, an agent tasked with summarizing a document might need prompts that first break down the document, then identify key themes, and finally summarize the findings. Without prompt engineering, the agent might miss crucial steps or misinterpret the task, resulting in incomplete or incorrect output.
  3. Controlling Output Format and Consistency:An AI agent might need to return its results in specific formats, such as bullet points, reports, or structured data. Prompt engineering allows you to specify the output style or format you need. For example, if you're building an agent that generates summaries of research papers, you might specify that the agent outputs the summary in a particular format, such as "Summary: followed by the key findings in three bullet points." The clarity of the prompt ensures that the agent’s output is structured according to your needs.
  4. Improving Interaction Quality:AI agents, especially those based on LLMs, can have wide variations in their responses based on the prompt. Without careful prompt engineering, you might get responses that are too vague, off-topic, or inconsistent. By providing clear instructions, context, and even examples, prompt engineering ensures that the agent understands the task and generates high-quality, relevant responses. It enables agents to handle complex tasks with more precision, reducing the chances of failure or irrelevant results.
  5. Guiding Agent Learning and Feedback:AI agents often improve over time by learning from feedback and adjusting their behavior based on it. In the context of prompt engineering, this means designing prompts that allow agents to self-reflect, evaluate their progress, and improve their actions. For example, an AI agent working on a research project might evaluate its own output and refine its methodology for gathering data or generating insights. Prompt engineering enables this type of iterative feedback process, helping the agent to refine its skills and improve task performance.
  6. Providing Control Over Iterative and Autonomous Tasks:In cases of autonomous agents, prompt engineering is essential to ensure that the agent remains on track while working through tasks. For example, an autonomous agent tasked with researching a topic might be prompted to check in with the user at each major decision point (e.g., "Do you want to proceed with this approach, or should I try something else?"). This allows you to maintain control over the agent’s actions while still letting it execute tasks with a degree of independence. Prompt engineering ensures the agent stays aligned with user expectations throughout the process.