Definition
What is ai agent?
An AI agent is a software system that pursues a stated goal over multiple steps, deciding which actions or tools to use along the way rather than following a fixed script. In business settings it is usually a language model connected to systems it can read from and write to, operating inside defined permissions with a human approval point for consequential actions.
Updated 3 September 2026
Why it matters
- Agents extend automation to processes with branching paths, which rules engines handle badly.
- They also expand the blast radius of an error, because an agent can take several actions before anyone notices.
- Permissions, logging and approval design matter more than model choice.
Business example
An operations agent receives a supplier email, looks up the related order, identifies a delivery discrepancy, drafts a response and prepares a system update — then stops and waits for a human to approve the update before it is written.
Common misconceptions
- 'Agents work autonomously end to end.' In production, most valuable agents stop at an approval point.
- 'Agentic means more capable.' It means more steps, and more steps means more places to fail.
- 'Agents remove the need for process design.' They make process clarity more important, not less.
Related concepts
- Large language model
- Retrieval-augmented generation
- AI automation
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