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GlossaryAI / LLM

What is AI Agent?

An AI agent is an LLM-powered software system that takes actions — calling APIs, querying data, executing multi-step workflows — to achieve a goal.

Definition

An AI agent is a software system built on top of a large language model (LLM) like GPT-4 or Claude, that can understand a user's goal, plan a sequence of steps, call tools (APIs, databases, functions) to execute them, observe results, and adapt. Unlike a chatbot — which maps inputs to outputs — an agent takes action. In 2026, most production AI agents are built using frameworks like LangGraph or the OpenAI Agents SDK, with RAG (retrieval-augmented generation) over private data, function calling for tool invocation, and observability via LangSmith or Langfuse.

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