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What Is an AI Agent?

An AI agent is a system that perceives context, decides on an action, and acts — often with tools. The definition is simple; the implications for spend are not.

The core loop

Perceive: take in context (prompts, tools, state).

Decide: choose the next action.

Act: call a tool, write output, or trigger a workflow.

Why agents are different from chatbots

Chatbots respond; agents act. Acting means side effects — including spending money.

The spend implication

Every action can be a purchase. Agents with tool access are spend-capable by design.

That's why the money path needs a deterministic gate.

FAQ

Do all agents spend money?

Only those with access to paid tools — but tool access is the norm.

What's the difference from an LLM?

An LLM generates text; an agent decides and acts with tools.

Related

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