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What are AI Agents?

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Used in a sentence

Engineering Notes · AI Systems

The bank is piloting AI agents that reconcile supplier invoices end to end without human review.

The reader highlighted one word in the docs. Clicked broke down the technical term “AI agents” into plain English:

Explained in three depths

Same facts, different vibe — Slang mode 😎

Formal definition — The same term, explained the usual way

AI agents are systems in which a language model operates in an iterative loop of planning, tool invocation, and observation to pursue a specified objective with limited human intervention. Distinguishing features include multi-step autonomy, access to external tools and environments, and state carried across steps; principal risks include error compounding, misaligned actions, and prompt injection via untrusted content, motivating guardrails such as approval gates and action logging.

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