How do AI agents work?

by SkillAiNest

When people talk about AI agents, they often envision a future that can think, talk, and make decisions.

But the fact is, AI agents are already here. And they are working quietly in the background. They answer customer questions, schedule meetings, write code, and even automatically send emails.

The reason they can do all of this comes down to one idea: they can understand their environment, reason about what to do, and then act.

In this article, we’ll explore how AI agents actually work and look at a real-world example using it. OpenAI API. You will see how an agent can use information, make choices, and take action to complete a task without the need for constant human assistance.

Table of Contents

What is AI Agent?

An AI agent is a system that observes its environment, makes decisions, and takes actions to reach a goal. You can think of it as a smart digital worker that not only responds to commands, but figures out how to achieve a goal.

For example, if you tell your virtual assistant, “Book a meeting with Alex next week,” the AI ​​agent doesn’t just understand the words. , it checks your calendar, looks up Alex’s schedule, finds free time slots, and sends invitations. In this simple task, the agent has understood your request, reasoned about its fulfillment, and taken action.

This same process applies to many of the systems we already use. When a chatbot answers your question, a car drives itself, or a trading bot makes decisions in real time, they all follow the same pattern.

The basic loop of an AI agent

Each AI agent operates on a simple but powerful idea: it detects, reasons, and acts.

Agent Loop

Perception means that the agent gathers information about its environment. For a chatbot, this is reading your text message. For a self-driving car, it could be data from cameras and sensors. The goal is to collect what’s going on around him and turn it into something he can understand.

Reasoning occurs when the agent decides what to do next. It takes the information it has just gathered and uses an algorithm or machine learning model to figure out the best course of action.

For example, if a chatbot reads a message that says, “I forgot my password,” that’s because the correct response is to help the user reset it.

Action is the last step. This is where the agent performs the task that is judged. It can respond with a message, execute a command, or control the system. After acting, it observes the results and adjusts if necessary. That cycle is ongoing, which allows for learning and adaptation over time.

Example: Using the OpenAI API to send email

Let’s look at a simple but real-world example. Imagine you run a small business and want an AI agent that automatically sends polite follow-up emails to people who haven’t responded after three days. The agent should be able to decide who to contact, write a natural message, and send it himself.

Here’s how it might look in pseudocode using the OpenAI API.

Set up OpenAI API key

Create a list of contacts with names, emails, and their last contact date

Function perceive_environment:
    Create an empty list called pending_contacts
    For each contact in contacts:
        If it has been 3 or more days since the last contact:
            Add the contact to pending_contacts
    Return pending_contacts

Function reason_and_generate_email(contact):
    Create a text prompt asking OpenAI to write a short friendly follow-up email
    Send the prompt to OpenAI model and get the generated email text
    Return the generated email text

Function act_and_send_email(contact, message):
    Display on screen:
        “Sending email to (contact email)”
        The generated message
        “Email sent successfully”

Function ai_email_agent:
    Get list of people who need follow-up by calling perceive_environment
    For each person in that list:
        Generate email text by calling reason_and_generate_email
        Send email by calling act_and_send_email

Run ai_email_agent

This pseudocode shows the three main parts of the AI ​​agent.

First, check feedback measures that have not responded in more than three days. This is how the agent observes its environment. It looks at the list of contacts and selects only those that require follow-up.

Next, reasoning takes place. The agent uses an OpenAI model to generate a personalized email for each contact.

It describes what to say, how to say it, and what tone to use based on the context. It doesn’t rely on pre-written templates, but instead, creates the message itself each time.

Finally, the action step sends the email. In this example, it prints the message to the screen rather than actually sending it, but in a real system, it could easily contact Gmail or any email service.

Each time the agent runs, it repeats this process. It again examines the environment, decides what to do, and acts accordingly. This continuous loop enables it to handle tasks autonomously and without direct control.

This example shows that AI agents can go beyond answering questions. Once connected to real-world tools such as APIs, databases, or messaging systems, they can perform actions automatically. The OpenAI model acts as the reasoning engine, while your code acts as the agent’s eyes and hands.

In a way, this setup mirrors how humans work. We observe our surroundings, think about what to do, and then act. Agent does the same but through code and models. It doesn’t just respond with text, it makes decisions that produce real results.

In large systems, AI agents handle complex workflows. A customer service agent can read tickets, check customer data, and write helpful responses. A coding agent can read a bug report, fix the code, and push updates to GitHub. Data Assistant can analyze sales records, summarize insights, and generate visual reports automatically.

All these systems share the same basic structure. They reason about the world through data, using large language models or algorithms, and operate through APIs or connected services.

How AI Agents Learn

Some AI agents improve by tracking their results over time. For example, if a follow-up email gets a reply, the agent records it as a success. If it is ignored, learns to try a different tone or topic next time.

This process is similar to how reinforcement learning works Machine learning. The agent receives a signal based on the success of its action and adjusts its future decisions to achieve better results.

Over time, it becomes more effective at achieving its goal, whether that goal is getting responses, resolving tickets, or reducing response time.

The future of AI agents

Today’s AI agents can already perform useful tasks, but the next generation will be far more capable. They will be able to plan, coordinate multiple actions and collaborate with other agents.

Instead of just sending emails, Future Agent can manage your calendar, update spreadsheets, analyze responses, and even handle billing without any human involvement.

These systems will not only automate tasks but also make decisions in real time. For example, an agent can analyze user feedback and automatically suggest product improvements, or a cybersecurity agent can detect a threat and deploy a patch immediately.

The challenge ahead is to make these agents work responsibly, safely and in alignment with human goals. Developers will need to focus on transparency, reliability and ethical behavior as agents become more autonomous.

The result

An AI agent works by observing, reasoning and acting towards a specific goal. Its genius comes from how it combines these three steps into a continuous loop.

As these systems evolve, they will transition from simple assistants to autonomous digital workers. Understanding how they work helps us see where the future of automation and intelligence lies, where software doesn’t just respond, but acts intelligently on our behalf.

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