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The Rise of AI Agents

Artificial intelligence has been a trending topic for decades—and for good reason! It keeps changing the way we interact with technology and the world around us. AI is all about building smart systems that can take on tasks we usually associate with human intelligence, like reasoning, problem-solving, decision-making, and understanding natural language.

One of the biggest breakthroughs in AI has been large language models (LLMs), which have paved the way for AI agents and assistants. But what exactly is an AI agent, and how are they used? Let’s take a closer look!

What is an AI Agent?

An AI agent is like a smart assistant that doesn’t just follow orders—it thinks, plans, and takes action on its own. It looks at the situation, figures out the best move, and decides what to do based on its goals and the data it has.

How do they work?

  • AI agents can decide which tools or actions to use, like searching the web, calling APIs, managing files, controlling a browser or even operating a computer.
  • They often use LLMs to process information and execute tasks.
  • With memory they can recall past interactions and refine their decisions over time.
  • They can automate multi-step workflows, anticipate user needs, and work with minimal human input.

Key Components

At the core of every AI agent are three essential parts:

  1. Router – The decision-maker that figures out what needs to be done.
  2. Tools – The actions the agent can take.
  3. Memory – The agent’s ability to remember past interactions.

Let’s break each of these down.

1. Router

Think of the router as the AI agent’s project manager. When you give it a request, it doesn’t just dive in blindly. It first analyzes the situation and decides the best way to handle it.

How it works:

  • The router gets your request.
  • It figures out the best tool or service to handle it.
  • It sends the request to the right place, optimizing efficiency.

This means the agent doesn’t waste time or resources. It’s always delegating tasks smartly, so you get the best outcome. Whether it’s using smart models or logic in the code, the router is the one calling the shots.

🌎 Real-World Example: Imagine you have a coding assistant, but someone asks it, “What’s the weather like?” The router, knowing the assistant isn’t built for weather reports, responds with, “I can’t help with that, but check a weather app!” It doesn’t waste resources on something outside its scope.

2. Tools

If the router is the project manager, then tools are the resources it has to get things done.

Here are a few of the tools an AI agent might have in its kit:

  • Web Search APIs – To fetch real-time information.
  • External APIs – For retrieving stock prices, booking flights, managing emails, etc.
  • Code Execution – Running Python scripts or calculations on the fly.
  • File Management – Reading or writing documents, organizing folders, handling spreadsheets.
  • System Control – Moving the mouse, opening apps, or automating desktop tasks.

🌎 Real-World Example: Imagine you ask your AI agent, “Can you generate a report with sales data by region for last week?” You don’t have to worry about SQL or tech-y details. The agent pulls the info from your database, organizes it, and even adds charts. It already knows which tables to grab from, making the whole process seamless and saving you time.

3. Memory

Memory is what gives your AI agent the ability to remember what’s been said and learn over time. Without memory, the agent would treat every chat as if it were brand new, which means you’d be repeating yourself all the time.

Memory Types:

  • Short-term memory – Keeps track of the conversation within a single session.
  • Long-term memory – Stores facts, rules, personal preferences, past interactions, and learned behaviors across multiple sessions.

What Memory Makes Possible:

  • Getting to know you: The more you interact, the more the agent understands your preferences, like how you like to view data or when to check in with you.
  • Smooth Conversations: The agent remembers context, so you don’t need to explain yourself over and over.
  • Proactive Help: The agent can anticipate your needs. For example, if you check sales data every week, it might automatically remind you of the report without you asking.

🌎 Real-World Example: Let’s say you’re running a marketing campaign and asking your agent for social media updates each week. At first, you just ask for basic stats—like “What were our top-performing posts this week?” But over time, the agent picks up on the key metrics you care about—like engagement rate or audience demographics. The next time you ask, it provides more detailed insights tailored to your goals and even offers suggestions for your next campaign based on what it’s learned. The agent doesn’t just remember your requests—it adapts and gets smarter, delivering exactly what you need.

How AI Agents Control Computers

We’ve mentioned that AI agents can control a computer, but how does that actually work?

These agents combine computer vision with language models to process what's happening on the screen in real-time. They take screenshots to understand the current state, use chain-of-thought reasoning to decide the next steps, and then interact with the computer using a virtual mouse and keyboard—just like a human (but maybe a little bit slower)!

🌎 Real-World Example: Imagine you need to collect data from multiple websites and organize it in a spreadsheet every single day. Instead of doing it manually, a Computer Using Agent (CUA) can:

  • Open a browser
  • Navigate to each site
  • Find and copy the necessary data
  • Paste it into the right cells in your spreadsheet

No APIs, no custom integrations—just a digital assistant getting the job done!

And if a website’s layout changes? No problem! AI can analyze the new screen state and adapt, making CUAs super useful for automating data entry, form submissions, report generation, and other repetitive tasks—freeing up your time for more important work.

Up until now, we’ve explored what AI agents are, how they work, and a few examples of what they can do. But you might be thinking, “Is an AI agent just an assistant?” Let’s answer that question next!

AI Agents vs. AI Assistants

The line between AI agents and AI assistants is getting increasingly blurry, so let’s break down some key distinctions! While both are designed to help us out and make our lives easier, they go about it in different ways.

AI Agents = Independent Thinkers
  • They work autonomously, without needing user input for every step.
  • They make their own decisions on which actions to take.
  • They can learn and adapt over time.

🤖 Example: An AI agent can analyze a dataset, find patterns, and generate insights without being explicitly told to do so.

AI Assistants = Helpful Sidekicks
  • They are more reactive, waiting for you to give them a prompt before acting.
  • They typically focus on simplifying tasks, helping with things like organizing or answering questions.
  • They usually don’t have long-term memory or the ability to learn from interactions.

🤖 Example: An AI assistant can look up information, answer questions, or create reports—but it won’t make decisions or take action unless you tell it to.

Best way to think about it? If an AI assistant is like Siri answering a question, an AI agent is like J.A.R.V.I.S. managing Tony Stark’s entire lab.

🌎 Real-World Examples in Use
  • SQL Bot (LinkedIn): Generates SQL queries from natural language, fixes errors, and personalizes responses based on the user.
  • Realm-X (AppFolio): A real estate AI agent that manages properties, schedules actions, and automates workflows.
  • Zapia AI (BrainLogic): A personal AI agent in WhatsApp that can transcribe audio, summarize news, and assist with daily tasks.
  • Elastic AI for Security: Helps security analysts by answering questions and detecting attack patterns.
  • Siri & Alexa: Voice assistants that set reminders, play music, and control smart devices.
  • Alexa+: A next-gen assistant with agent-like abilities, like browsing the web to make reservations.

As AI keeps evolving, some AI assistants are gaining agent-like autonomy, and some AI agents still rely on human input at times. The future? Even more powerful, self-sufficient AI that blends the best of both worlds!

Now, if you’re excited about building your own AI agent, the next step is figuring out where to start. There are plenty of frameworks and platforms out there, so just go with one that works for you!

Choosing an AI Agent Platform

If you want a quick and easy solution, low-code and no-code platforms let you build AI agents without deep programming knowledge. Prefer full control and customization? High-code platforms give developers the flexibility to design complex agents with custom logic and integrations.

⚡ Low-Code/No-Code Options

  • Google Vertex AI Agent Builder – Easily build chatbots that answer questions based on documents or websites.
  • Browser-use – Automate online tasks like filling forms, booking reservations, and tracking deliveries—no deep coding skills needed!
  • n8n – Create powerful AI workflows, automate tasks across apps and services, and choose between cloud or self-hosted options.

💻  High-Code Options

  • OpenAI offers two great tools for building intelligent agents:
    • Responses API – Lets agents search the web, find files, and use your browser or computer.
    • Agents SDK – Gives you full control to customize agent behavior, turn Python functions into tools, and handle complex workflows with built-in tracing for debugging.
  • LangGraph – Design AI agents as structured graphs of states, making their behavior easier to manage and trace.
  • CrewAI – Create AI agents that collaborate to accomplish tasks, with roles and orchestration built in.

No matter your skill level, there’s a platform to help you get started!

That said, even the most powerful AI agents have their limitations. Like any tool, they come with their own strengths and weaknesses. Understanding where AI agents still have room to grow can help set the right expectations.

AI Agents Aren’t Perfect—Yet

While they’re constantly improving, there are still a few hurdles to overcome. Here are some limitations to keep in mind:

  • LLM Performance Gaps – While models like Claude 3.5 Sonnet and GPT-4o do well at reasoning and coding tasks, they struggle with direct computer interactions. For example, Claude 3.5 Sonnet and GPT-4o’s OSWorld scores (measuring how well they interact with operating systems) are still quite low—~15% and 38%, respectively. However, these numbers are likely to improve fast!
  • Hallucinations Happen – Sometimes, AI confidently makes things up. A chatbot might give incorrect financial advice, a coding assistant could suggest nonexistent functions, and a medical AI might hallucinate drug dosages. This is why fact-checking, RAG (Retrieval-Augmented Generation), and human oversight are critical.
  • Self-Improving Systems Are Still Evolving – AI can optimize its own prompts (prompt optimizers) and refine its outputs using feedback loops (reflection agents). But managing these loops at scale is tricky, and bad feedback can reinforce existing flaws.

But even with these challenges, the potential of AI agents is undeniable. As the technology evolves, the possibilities for automation and intelligent systems are only getting more exciting!

Final Thoughts

As we’ve seen, AI agents are changing the way we interact with technology. Instead of needing deep technical skills, we can now tell AI what we want in natural language, and it translates that into actions.

As these systems improve, the line between human intent and machine execution gets thinner. What once required coding expertise can now be achieved with simple commands—making AI more accessible and powerful than ever.

Whether you’re looking to automate tasks, build custom workflows, or develop advanced autonomous agents, the possibilities are endless. The future of AI is fast, intuitive, and built to work for you.

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