An AI agent is a system that uses an LLM not just to answer one message, but to reason over multiple steps, call tools (search, APIs, code), and use memory (conversation and sometimes long-term storage). The key difference from simple chat: the agent runs in a loop — it can decide to search, then read the result, then call another tool or finally answer the user. That loop is controlled by an agentic pattern (e.g. ReAct or plan-and-execute).
How an agent runs: the loop
The agent keeps looping (think → act → observe) until it produces a final answer or hits a step limit.
Definition
Example: When you need an agent
Single turn: "Summarize this article" → one call, one reply. Agent: "Book me a flight to Tokyo next week" → the system might call a search tool for flights, then a booking API, then confirm with you. Multiple tool calls and turns are required; the agent coordinates them.