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AI Agents in Practice
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As we mentioned in the preceding chapters, one of the key features and differentiations of AI agents is that they can interact with the world. While LLMs can understand, reason, and generate text, they are ultimately limited by what exists within their training data and current context window. To go beyond passive conversation and perform real, useful actions—such as booking appointments, querying databases, retrieving live information, or executing multi-step workflows—AI agents must be equipped with tools.
Tools are the functional extensions of an agent’s intelligence. They allow agents to call APIs, access external systems, retrieve fresh data, and even manipulate structured knowledge bases.
Throughout this chapter, we will cover the following topics: