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Module 7 · AI Agents

AI Agents

What actually makes something an agent, tool calling as the mechanism, the ReAct reasoning loop, the Model Context Protocol, agent memory, and the failure modes that show up once a single agent runs in production.

An agent is not just a large language model with a more excitable prompt — it is a model running an observe-decide-act-observe loop, using tool calling to trigger real code and reason over the results of its own actions. This module builds that definition from first principles: how tool calling actually works across the model, the schema, and the calling application; the ReAct (Reason-Act-Observe) pattern that gives an agent's reasoning an explicit, debuggable structure; and the Model Context Protocol (MCP), which standardizes how tools get exposed to a model in the first place.

By the end of this module you should be able to explain why a single agent starts to break down as a task grows — tool-call hallucination, infinite loops, and losing the plot in a long conversation are all real, specific failure modes with real causes, not vague bugs. Module 6's prompt engineering is the interface every agent decision runs through, and Module 8 picks up exactly where this module's single-agent limits end, splitting one agent's job across several.

Free related reading in this studio
→ AI Agent Development Guide→ AI Agent Design Patterns→ Concept Explainer: Agents vs. Workflows

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