Glossary
What is AI agent?
Last updated:
An AI agent is a system that connects a language model to tools and thereby executes multi-step tasks autonomously: it reads requests, retrieves data, decides and acts, instead of only producing text.
The difference from a chatbot is agency: an agent calls interfaces, writes records, plans follow-up steps. A phone agent, for instance, takes the call, recognises the request, checks the calendar and books the appointment, without a human hand in between.
Technically, an agent consists of a model, tools (API calls, databases) and a loop that checks intermediate steps. Standards such as the Model Context Protocol connect the tools.
Why it matters for the mid-market
Agents are the form in which AI takes over real work in the mid-market: call answering, quote preparation, data upkeep. They pay off where a uniform process repeats often, and they need clear stop rules, because they act autonomously.