What are AI Agents? - Explanation & Meaning

Definition

AI agents are autonomous software systems that use an LLM as their core reasoning engine to independently plan, execute, and complete tasks, including invoking external tools and data sources.

Technical explanation

AI agents combine the reasoning capabilities of LLMs with the ability to take actions in the outside world. An agent receives a goal, breaks it into subtasks via a planning phase, executes each step by invoking tools (APIs, databases, web searches), and evaluates results to determine whether the goal has been achieved. The ReAct pattern (Reasoning + Acting) is the dominant architecture, where the model alternates between reasoning and acting. Multi-agent systems deploy multiple specialized agents that collaborate: an orchestrator agent distributes tasks to specialist agents for code, research, or data processing. In 2026, 57% of enterprise companies have implemented AI agents. Anthropic's Model Context Protocol (MCP) has emerged as the open standard for tool use, enabling agents to connect to data sources and services via a standardized interface. Frameworks such as LangGraph, CrewAI, and AutoGen facilitate development of complex agentic workflows with built-in error handling, memory, and human approval steps.

How MG Software applies this

MG Software develops AI agents that automate business processes for our clients. We build agents that independently collect data, generate reports, handle customer queries, and orchestrate workflows. Via the MCP protocol, we connect agents to CRM systems, databases, and internal tools so they operate securely and reliably within existing IT infrastructure.

Practical examples

• A financial institution deploying AI agents to automatically generate compliance reports by collecting data from multiple internal systems, analyzing it against regulations, and compiling a report for compliance officer review.
• An IT helpdesk using a multi-agent system where a triage agent classifies incoming tickets, specialist agents propose solutions, and a communication agent keeps users informed of progress.
• An e-commerce company deploying an AI agent to automatically update product catalogs by scraping supplier information, comparing prices, and synchronizing inventory levels.

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