🤖 Artificial Intelligence

AI Agents & Tool Use: From Chatbots to Autonomous Task Completion

📅 December 14, 2025 ⏱️ 19 min read 👤 TeraSystemsAI Research Team

ChatGPT answers questions. AI Agents complete tasks. The shift from passive Q&A to autonomous execution is the biggest transformation in AI since the transformer. And it's happening right now.

🎯 The Evolution:
2022: "What's the weather?" → "It's 72°F and sunny"
2025: "Plan my outdoor birthday party" → Agent checks weather, books venue, sends invitations, orders catering, creates playlist...

🔬 Live Agent Execution Trace

Watch an AI agent decompose tasks, select tools, and execute autonomously

🧰 Available Tools

🔢 Calculator
Perform mathematical calculations
📅 Calendar
Check and create calendar events
📧 Email
Send and read emails
🗄️ Database
Query company database
💻 Code Executor
Run Python code snippets
Execution Trace
Ready
System
Agent initialized. Select a task and click Execute to begin.

The ReAct Framework

Modern AI agents use ReAct (Reasoning + Acting), interleaving thought and action:

User: "What's the population of France times the GDP per capita of Germany?"

Agent Thought: I need two pieces of information. Let me search for each.

Agent Action: search("population of France 2024")
Observation: France population is approximately 68 million.

Agent Thought: Good. Now I need Germany's GDP per capita.

Agent Action: search("GDP per capita Germany 2024")  
Observation: Germany's GDP per capita is approximately $51,000.

Agent Thought: Now I can calculate: 68,000,000 × 51,000

Agent Action: calculator("68000000 * 51000")
Observation: 3,468,000,000,000

Agent Response: The population of France (68 million) multiplied by 
Germany's GDP per capita ($51,000) equals $3.468 trillion.

🔧 Function Calling: The Technical Foundation

OpenAI, Anthropic, and Google all support function/tool calling:

tools = [
    {
        "type": "function",
        "function": {
            "name": "search_database",
            "description": "Search company database for records",
            "parameters": {
                "type": "object",
                "properties": {
                    "query": {"type": "string"},
                    "table": {"type": "string", "enum": ["customers", "orders", "products"]},
                    "limit": {"type": "integer", "default": 10}
                },
                "required": ["query", "table"]
            }
        }
    }
]

response = client.chat.completions.create(
    model="gpt-4-turbo",
    messages=[{"role": "user", "content": "Find our top 5 customers by revenue"}],
    tools=tools,
    tool_choice="auto"
)

The model outputs structured JSON that your code executes:

{
    "tool_calls": [{
        "function": {
            "name": "search_database",
            "arguments": "{\"query\": \"ORDER BY revenue DESC\", \"table\": \"customers\", \"limit\": 5}"
        }
    }]
}

🏗️ Agent Architectures

1. Single-Agent Loop

One LLM handles planning, tool selection, and synthesis:

while not task_complete:
    thought = llm.think(observation)
    action = llm.select_action(thought, tools)
    observation = execute(action)
    if llm.is_complete(observation):
        return llm.synthesize(history)

2. Multi-Agent Systems

Specialized agents collaborate:

3. Hierarchical Agents

Manager agents delegate to worker agents:

ManagerAgent
├── ResearchTeam
│   ├── WebSearcher
│   └── DocumentAnalyzer
├── ExecutionTeam
│   ├── CodeWriter
│   └── Deployer
└── QATeam
    ├── Tester
    └── Reviewer

⚠️ Challenges & Risks

Hallucinated Actions

Agents can confidently take wrong actions. A coding agent might "fix" a bug by deleting critical code.

Runaway Execution

Without proper safeguards, agents can:

Security Vulnerabilities

Agents with tool access are prime targets for prompt injection (see our security post).

🛡️ Safe Agent Design Principles:
  1. Least privilege: Agents get minimal permissions needed
  2. Human-in-the-loop: Require approval for destructive actions
  3. Sandboxing: Execute in isolated environments
  4. Rate limiting: Cap actions per minute/hour
  5. Audit logging: Record every action for review

Building Production Agents

Frameworks for building agents:

TeraSystemsAI Agent Platform
We build enterprise-grade AI agents with:

📚 Further Reading

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AI Researcher 3 days ago

Great article! Very informative and well-structured. Looking forward to more content like this.