Glossary - AI Agent
AI agents come in many shapes and sizes, and the names can get confusing fast. To make it easier, here’s a quick rundown of the main types—both the classic categories from computer science and the practical versions you’ll actually hear about in business.
What is AI Agent?
An AI agent is basically smart software that can get things done for you. Instead of just answering questions, it can think through tasks, make decisions, and use different tools to actually take action.
How Does AI Agent Work?
They usually follow a simple loop: take in information, figure out what needs to be done, use the right tools or systems, remember the outcome, and repeat. This cycle helps them learn, adapt, and improve over time instead of starting from scratch each time.
Key Features
Good agents can break big tasks into smaller steps, connect with business tools like CRMs or databases, and keep both short- and long-term memory. They also come with guardrails to stay safe, dashboards for monitoring, and sometimes even the ability to work together as a team of agents.
Benefits
The main win is saving people time and effort. Agents handle repetitive work consistently, reduce errors, and keep things moving even when humans are busy. They also make sure small but important tasks don’t slip through the cracks.
Use Cases
AI agents can jump in almost anywhere. They resolve customer service issues end-to-end, help sales teams by researching leads, automate back-office tasks like invoices, monitor IT systems, or keep supply chains running smoothly by adjusting orders and deliveries in real time.
Types of AI Agent
There are a few different “flavors” of AI agents, each with its own style of working. In business settings, you’ll also hear about more practical categories.
Reflex agents
Only react to what’s in front of them. Think of them as “if this happens, do that” machines.
Model-based agents
They carry a simple memory of the world around them, so they can handle situations that aren’t purely black and white.
Goal-driven agents
They don’t just react—they plan steps with a clear outcome in mind.
Utility-based agents
They go a step further, weighing options and picking the one that delivers the best overall result.
Learning agents
These get better the more they work, adjusting their approach based on experience.
Task bots
They repeat specific workflows like processing refunds.
AI-enhanced RPA tools
Automate messy, unstructured data tasks better than old-school scripts.
Domain specialists
Focus on one area—like HR, compliance, or IT—and excel there.
Orchestrators
Act like managers, breaking big jobs into smaller tasks and handing them out.
Multi-agent teams
Where several specialized agents team up to solve larger, more complex problems.
How to Choose the Right One
Choosing the right type of agent really comes down to the job at hand. If the task is routine and predictable, a simple rule-based bot often does the trick. Once you’re dealing with processes that touch several systems or need some judgment, it’s better to lean on a goal-oriented agent or an orchestrator that can coordinate the steps. Risk is another factor: when money or compliance is on the line, you’ll want guardrails and approvals in place. On the other hand, low-risk tasks can usually be left to run without much interference. One last thing—agents perform best when your data and systems are clean, so the stronger that foundation, the more trust you can place in them.