Definition: AI agent

An AI agent is software that interacts with the environment. Extremely versatile, AI agents can not only employ small and large language models to obtain knowledge but they can use external sources such as databases and websites.

The key to any agent, AI or otherwise, is that it can continuously monitor a situation and act on its own when certain events occur. An AI agent might begin processing based on the time of day. Unlike generative AI, which always requires a prompt from the user, an AI agent can take action on its own. See agent and reinforcement learning.

AI agents are becoming popular because they add human-like decision making to traditional computer-based tasks. They can not only handle routine functions such as scheduling a meeting or booking a trip, but they may be able to refine their algorithms to improve their effectiveness the next time.

Agent Terminology
Also called "agentic AI," an AI agent is generally considered part of an AI application or AI system, both of which are commonly called just plain AI; for example, "an AI can do that job." See system and AI model.

Replacing Everything?
In late 2024, Microsoft CEO Satya Nadella said AI agents are going to be part of all software applications in the future. Considering that Microsoft has made a fortune in business applications, Nadella's comment sparked a lot of controversy. Nevertheless, by all accounts, we seem to be heading into a very different technological future. Stay tuned! See AI anxiety.

The Future?

Artisan's eye-popping slogan at the HumanX AI conference in 2025 created a lot of attention. "Stop Hiring Humans" means Artisan's AI sales agent does the work of several people, so there is no need to hire more. See HumanX. (Image courtesy of Artisan AI Inc.)