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Agentic AI

Software that uses LLMs to plan, decide, and act over multiple steps, often calling tools to interact with other systems. Different from a chatbot, which only responds to messages inside a conversation. The defining AI architecture of 2025-2026.

How it works

An agentic AI system has four parts: a planner (LLM that decides next action), an executor (runtime that calls tools), tools (functions for interacting with external systems), and memory (conversation history plus optional long-term retrieval). It runs autonomously until it completes the task or hits a step or cost limit.

Example

A customer service agent that reads a billing complaint, looks up the customer in Stripe, validates the duplicate charge against the refund policy, processes the refund, sends the confirmation email, and updates the support ticket — all without human input in 30 seconds.

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