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Generative AI advanced 10 min read

AI Agents and Tool Use

How LLMs go beyond chat to plan, use tools, and take actions.

Inspired by learning material from OpenAI

An AI agent is an LLM that doesn't just answer — it plans, uses tools, and takes actions to accomplish goals.

From chatbot to agent

A plain LLM responds to a prompt. An agent can:

The reasoning loop

Agents often follow a loop: think → act → observe → repeat, until the goal is met. This lets them handle multi-step tasks.

Tool use

By giving the model functions it can call, you extend its abilities far beyond text — fetching live data, running code, or updating records.

Risks and guardrails

Agents that take actions need limits: permissions, validation, and human approval for sensitive steps.

Key takeaways