AI Agents and Tool Use
An AI agent combines a model with tools, instructions, memory or state, and a control loop that allows it to pursue a goal through multiple steps.
Learning objectives
What you will be able to do
- Explain ai agents and tool use accurately in your own words.
- Recognise how the concept appears in real AI products and professional work.
- Identify an important limitation, risk or evaluation requirement.
- Apply the concept through a practical activity and knowledge check.
Core explanation
Build the right mental model
A basic chatbot produces a response. An agent can choose an action: search documents, call an API, calculate, write a file or ask for approval. The environment returns an observation, and the agent decides the next step.
Tool use increases usefulness and risk. A wrong answer is different from a wrong action that sends an email, changes a record or spends money. Permissions should be minimal, important actions should require approval, and every action should be logged.
Good agent design defines a narrow goal, trusted tools, stopping conditions, error handling and evaluation scenarios. More autonomy is not automatically better.
Tool
A controlled capability the model can request, such as search or calculation.
Agent loop
Plan or select action, observe result, then continue or stop.
State
Information retained across steps in a task.
Approval gate
A point where a person must confirm a consequential action.
Research agent
The agent searches approved sources, extracts findings and drafts a brief.
Apply your learning
Practical activity
- Design a three-step agent for a low-risk task.
- List its allowed tools.
- Add one approval gate, stopping rule and error recovery step.
Write your answers in a learning journal. The value comes from connecting the concept to your own profession.
Knowledge check
Test your understanding
Q1What distinguishes an agent from a single model response?
Answer: An agent can select tools and perform multiple environment-connected steps toward a goal.
Q2Why use least privilege?
Answer: It limits the damage possible when the model or workflow makes a mistake or is manipulated.
If you cannot explain the answer without reading it, revisit the core explanation and example before continuing.
Continue with authoritative sources
Important industry resources
These links lead to official organisations, industry laboratories or established open-source learning projects.