CyberFreezeDevNarrow tools
Only the actions the job needs. An agent that can only propose cannot delete.
Read more about Narrow tools
Give the agent the smallest set of actions the job needs. An agent that can only propose a record cannot delete one.
- Home
- AI glossary
- Agentic AI
What is agentic AI?
Software that picks its own next step and uses tools until the goal is met.
Definition
The model chooses actions, not just text: it picks a tool, your software runs it, and the result shapes the next decision.
Read more about Definition
Agentic AI is a way of building with language models where the model does not just produce text, it chooses actions. A loop runs: the model looks at the goal and what has happened so far, picks a tool (search the CRM, read a PDF, draft an email, query a database), the software runs that tool, and the result goes back to the model for the next decision.
A single system built this way is an AI agent. "Agentic AI" is the broader label for the approach, including setups where several agents divide the work, which we cover under multi-agent systems. The tool calls themselves use function calling, and the Model Context Protocol is a common way to give an agent access to tools.
How it differs from other AI
| Approach | Who decides the steps | Typical use |
|---|---|---|
| Chatbot | The user, one question at a time | Answering from documents or a knowledge base |
| Workflow automation | A designer, in advance | Fixed processes: when X happens, do Y then Z |
| Agentic AI | The model, at run time, within limits you set | Tasks where the next step depends on what was found |
A practical example
An agent matches bank lines to invoices and stops for a person when unsure. Nothing reaches the books without a person confirming.
Read more about A practical example
A finance team asks an agent to clear last week's unmatched bank lines. The agent lists the lines, searches open invoices for each amount, reads the narration for a customer name, and where it finds one match it proposes the link. Where it finds two candidates or none, it stops and writes a note for a person.
That last part is the design choice that matters. In our own product Fint, the agent proposes and a person confirms in an Inbox; nothing reaches the books on the agent's word alone. For most business uses that is the right default: let the agent do the searching and drafting, and keep a human in the loop for anything that moves money or speaks to a customer.
What to get right
Stopping rules
A step limit and clear handover rules stop a confused agent from looping.
Read more about Stopping rules
Set a step limit and clear conditions for handing over, so a confused agent stops instead of looping.
Logs
Record every tool call and result so you can see what the agent saw.
Read more about Logs
Record every tool call and result. When something goes wrong you need to see what the agent saw.
Evaluation
Test on real past cases before launch, and keep testing afterwards.
Read more about Evaluation
Test on real past cases before launch and keep testing after, as described under model evaluation.
Questions
Is agentic AI the same as generative AI?
No. Generative AI is the underlying ability to produce text, images or code. Agentic AI uses that ability inside a loop that chooses and runs actions. Most agentic systems use a generative language model as their decision maker.
Do I need agentic AI, or is workflow automation enough?
If you can write the steps down in advance, a fixed workflow is cheaper, faster and easier to audit. Use an agent where the next step depends on what was found. We compare the two in AI agent vs workflow automation.
Can an agent act without anyone checking?
It can be built that way, but for actions that move money, change records or reach customers we design agents to propose and let a person confirm. See our AI agent development service.
Last updated