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Reference 2026-07-01 8 min

How AI Agents Work

A plain-language explanation of agents, tools, memory and guardrails.

By Mohammad Zayed

Overview

An AI agent takes a goal and works toward it by calling tools, observing results and deciding the next step — unlike a fixed script.

Parts

  • Model — reasons about what to do next.
  • Tools — actions like search, send, query.
  • Memory — what it knows from earlier steps.

The loop

loop
while (!done && steps < MAX) {
  action = plan(state);
  result = run(action);
  state = observe(result);
  done = evaluate(state);
}

Guardrails

Cap steps and tokens, validate outputs, and require human approval for risky actions. See our AI Agent Architecture note.

Frequently asked questions

Is this a definitive recommendation?
It's our reasoned default, not a universal rule. The right choice depends on your constraints, team and timeline.
Do you only use these technologies?
No. We choose the stack that fits the problem. These pages explain the defaults we reach for and why.
Can you help us decide?
Yes. Book a strategy call and we'll map your requirements to a stack.

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