Glossary
AI agent: what it is, and how it differs from a chatbot
An AI agent is software that uses a language model to pursue a goal on its own: it plans the steps, calls tools and systems, reads the results and decides what to do next. A chatbot answers a question; an agent completes a task. In a business, agents work inside existing systems and within written limits on what they may decide.
Featuring insights fromShaun Devan · Founder & CEOUpdated · 3 min read
AI agent vs chatbot vs assistant
| Chatbot | AI assistant | AI agent | |
|---|---|---|---|
| Does | Answers questions | Helps a person with a task | Completes a task end to end |
| Acts in systems | Rarely | Through the user | Directly, through tools and APIs |
| Who decides | The user | The user | The agent, within its authority |
| Example | Website FAQ bot | Drafting a reply in email | Deciding an insurance endorsement |
What an agent is made of
- A model that reads, reasons and writes.
- Instructions and context: the rules, examples and data it needs for the task.
- Tools: the APIs, databases and systems it can read from and write to.
- Authority and controls: what it may do alone, what it must refer, and a log of every action.
Agents in production
Native helped TIE put agents on every endorsement request for a transportation insurance MGA. They check each one against the policy and the rules and either decide it or hand an underwriter a pre-filled decision; 74% now need no underwriter. See Native Agents.
Sources
Frequently asked questions
What is the difference between an AI agent and a chatbot?
A chatbot answers questions in a conversation. An AI agent takes actions toward a goal, using tools and systems, and can complete work without a person driving each step.
Are AI agents safe to use in a business?
They are when they run within written authority, are tested against real past cases before release, log every action, and refer anything outside their limits to a person.
What can AI agents do for a company?
Common uses include reading and entering orders and invoices, reviewing applications and claims, sourcing candidates, answering calls, and querying business data in plain English.
