How Are AI Agents Built?
An AI agent is not one model or one tool. It is a system that combines model intelligence with instructions, tools, state, and an execution loop.
Six pieces working together
Model
Generates or reasons about the next useful step.
Instructions / System Prompt
Sets the role, rules, context, and boundaries.
Tools
Lets the system take approved actions in the world.
State / Memory
Keeps task context, history, and useful information.
API / MCP
Provides a structured bridge to external capabilities.
Permissions / Human Approval
Defines what can happen automatically and what needs review.
Action happens in a cycle
The loop continues until one of these conditions is reached.
“Check order 123 and draft an update email.”
Four common shapes
SINGLE AGENT + TOOLS
One agent uses a set of tools to complete a task.
AGENT + RAG
An agent retrieves relevant knowledge before acting.
AGENT + HUMAN APPROVAL
The agent proposes actions while a person controls sensitive steps.
MULTI-AGENT
Several specialized agents coordinate on one larger task.
Frameworks assemble the pieces
Frameworks help developers assemble and manage these pieces. Explore Agent Frameworks →
Capability vs system
MODEL
Generates and reasons.
AGENT SYSTEM
Uses model capability inside an action loop.
Dynamic vs predefined
AGENT
Can dynamically decide the next steps.
WORKFLOW
Often follows predefined steps.
Real systems can combine both.
An agent is a system
An AI agent is built by combining a model with instructions, tools, state, and a loop that lets it act toward a goal.
HOW AGENTS ARE BUILT PAGE PASS / FAIL
PASS when you can explain what an Agent is made of, Model vs Agent, the Agent Loop, Tools / State / MCP, and Agent vs Workflow.