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What Are AI Agents? Types, Examples, and Benefits

What Are AI Agents? Types, Examples, and Benefits

What Are AI Agents? Types, Examples, and Benefits

Artificial intelligence continues to evolve, moving from simple rule-based systems to sophisticated tools capable of understanding context, learning from interactions, and making autonomous decisions. 

At the helm of this evolution are AI agents – intelligent software entities that can perceive their environment, make decisions, and take actions to achieve specific goals – all with minimal human intervention. 

The fundamental shift lies in the difference between generative AI and agentic AI. Generative AI tools generally have supported our daily work, whereas agentic AI tools can actually do the work for us. 

In this article, we’ll explore what AI agents are, how they differ from other AI systems, the mechanics behind the operation, and the transformative impact they’re beginning to have across industries – particularly AI in ecommerce and marketing.

What are AI agents?

AI agent definition: AI agents are autonomous or semi-autonomous software entities designed to perceive their environment, make decisions, and take actions to achieve specific objectives. Unlike traditional AI systems that simply process inputs and generate outputs based on predetermined rules, AI agents are able to observe, analyze, plan, and execute tasks with varying degrees of independence. 

There are a few important components of an AI agent:

  • Large Language Model (LLM). As the “brain” of the AI agent, an LLM is responsible for coordinating the decisions the AI agent makes. It is the component of the agent that reasons through tasks, plans actions, selects the appropriate tools to accomplish its goal, and manages access to the necessary data required to achieve objectives. Inside the agent core is where the agent’s overall goals and objectives are defined.
  • Memory modules. Memory is necessary for an AI agent to maintain context as well as adapt to ongoing or historical tasks.
    • Short-term memory. Tracks the agent’s “train of thought” and recent actions.
    • Long-term memory. Remembers historical interactions and relevant information to allow deeper contextual understanding and improved decision-making over time. 
  • Planning modules. With planning modules, AI agents are able to break down complex tasks into actionable steps: 
    • Without feedback. Structured techniques like “Chain of Though” or “Tree of Thought” are used to deconstruct tasks into manageable steps.
    • With feedback. By incorporating iterative improvement methods or human-in-the-loop feedback, the agent can refine strategies and outcomes accordingly.
  • Tools. AI agents can be tools themselves, or they can integrate with external systems as well, such as:
    • APIs. Access real-time data or execute actions programmatically.
    • Databases and retrieval augmented generation (RAG) pipelines. These tools retrieve the relevant information and ensure accurate knowledge bases are used.
    • Other AI models. Collaborate with additional models for specialized tasks. 

What’s the difference between AI agents and chatbots?

Both AI agents and chatbots utilize natural language processing (NLP), but the major difference between them is with autonomy and capabilities. 

A chart showing difference between AI agents and chatbots?

The major difference is with respect to agency. A chatbot will respond to your request, but an agent can proactively work to accomplish what you expect it to, and navigate various systems in order to accomplish the task. 

How does an AI agent work?

A sophisticated feedback loop allows agents to perceive, reason, act, and learn. 

A sophisticated feedback loop allows agents to perceive, reason, act, and learn. 

AI agent workflow

  1. Perceive. Agent collects information from its environment through data feeds, user inputs, sensors, or API connections. This information provides the context necessary for decision-making.
  2. Reason. A LLM serves as the agent’s brain and generates solutions using machine learning algorithms.
  3. Act. Agentic AI can execute a task based on the plan it formulated in step two, and it can do this without human interaction. 
  4. Learn. A data flywheel allows agentic AI to continuously improve through a feedback loop. The data generated from the interactions the agent completes is fed back into the system to enhance the model. 

This process is not linear, but it is cyclical. Agents are continuously perceiving, reasoning, acting, and learning as they work toward their objectives. This ongoing feedback loop enables agents to improve their performance over time, without explicit reprogramming. By contrast, a generative AI tool would need to be trained on new data to improve performance. 

The AI agent’s step-by-step process

An AI agent combines core components to tackle complex tasks. Below is an example that illustrates how these components work together in response to a user’s request.

Example prompt: Analyze our revenue for the past 30 days and provide a graph.

Step 1: User or machine request

A user or another agent or system initiates the agent’s workflow by requesting the analysis of sales data and a visual representation. The agent processes the input, then deconstructs how to accomplish the request into actionable steps.

Step 2: LLM understands the task

Acting as the brain of the agent, the LLM interprets what the user has prompted to determine what it needs to do to accomplish the task, such as:

  • Retrieve data from the database
  • Perform a data analysis
  • Create a visual graph

During this process, the LLM determines what information it already has at its disposal, what additional data or tools it needs, and a step-by-step plan to fulfill the task. 

Step 3: Planning module breaks down the order of tasks

The planning module divides the task into specific actions:

  • Fetch. Retrieve the latest sales data for the past 30 days from the appropriate database.
  • Analyze. Apply appropriate algorithms to identify trends and insights.
  • Visualize. Generate a graph to present results.
Step 4: Memory module provides the context

The memory module ensures the context is preserved for task execution by utilizing the short-term and long-term memory:

  • Short-term memory. Tracks the context of the current workflow, such as similar tasks that were requested previously, to streamline the process.
  • Long-term memory. Retains historical knowledge, like which database is required or preferred analysis methods.
Step 5: Perform the task

The agent chore orchestrates the tools required to complete each step:

  • APIs. Retrieves raw sales data.
  • Machine learning algorithms. Analyzes data for trends and patterns.
  • Code interpreter. Generates the graph based on the analysis.
Step 6: Reasoning and reflection to improve outcomes

As the process goes on, the agent applies reasoning to refine its workflow and enhance accuracy. This process includes:

  • Evaluating the effectiveness of each action
  • Ensuring the efficient use of tools and resources
  • Learning from user feedback to enhance tasks in the future

7 types of AI agents and real-world examples

There are several categories of AI agents based on their complexity, ability to learn, and decision-making mechanisms. Let’s go over some examples of AI agents and their potential applications. 

Types of AI agents and real-world examples

1. Simple reflex agents

Simple reflex agents operate on a basic condition-action rule set. They perceive their current environment and act based on predefined rules without considering the history or possible future states. 

Following an “if-then” logic, these agents are effective for straightforward tasks with clear rules, but are limited in their usefulness for complex environments that may have uncertainty. 

Example: Thermostat system that adjusts temperature based on current readings without considering patterns or user preferences. 

2. Model-based reflex agents

Model-based reflex agents maintain an internal representation of the world (a model) that helps them track aspects of the environment they’re unable to directly observe. By understanding how the world evolves independently of their actions, the agent is able to make more informed decisions. 

Example: A spam email filter builds models of what constitutes spam and what is a legitimate email based on patterns and features. 

3. Goal-based agents

Goal-based agents take decision-making a step further by considering the future consequences of their actions. They evaluate different action sequences to determine which will lead them closer to their goals, making them much more flexible in complex environments. 

Example: Navigation systems like Google Maps can calculate routes based on current traffic conditions, anticipated congestion, and the user’s goal of reaching a destination efficiently. 

4. Utility-based agents

A utility-based agent refines the goal-based approach by assigning a value (utility) to different possible outcomes. This enables them to make optimal decisions when faced with conflicting goals or uncertain outcomes by maximizing expected utility. 

Example: A product recommendation system balances multiple factors, such as user preferences, inventory, and profit margins to optimize for overall customer satisfaction as well as business value. 

5. Learning agents

Learning agents can improve their performance over time and through experience. They can incorporate feedback mechanisms that allow them to adapt their behavior based on successes and failures to gradually refine their decision-making process.

Example: Netflix’s content recommendation algorithm continuously improves its suggestions based on viewing patterns and explicit feedback from users. 

6. Hierarchical agents

Hierarchical agents organize the decision-making process across multiple levels, with higher levels handling long-term planning and lower levels managing moment-to-moment actions. This structure allows them to tackle complex tasks that require both strategic thinking and tactical execution. 

Example: An autonomous agent in a vehicle separates the navigation planning (where to go) from motion control (steering, accelerating, and braking) in a hierarchical decision-making system.

7. Multi-agent systems (MAS)

A multi-agent system involves multiple agents working together, sometimes cooperatively and sometimes competitively. These systems are able to solve problems that are beyond the capability of any one agent individually by coordinating the tasks. 

Example: Supply chain optimization systems can have different agents represent various stakeholders (suppliers, manufacturers, distributors) and negotiate to find optimal solutions for the entire network.

AI agent use cases

Many industries are completely transforming their operations through the use of agents. Here are some of the most impactful applications at play today:

Business intelligence and analytics

One thing AI agents excel at is turning raw data into actionable insights. By continuously monitoring business metrics, detecting anomalies, generating reports, and alerting stakeholders to emerging trends or issues, agents can handle a number of tasks at once that typically require significant time investment.

For example, Triple Whale’s Moby Agents allow users to use natural language to ask questions about their data, and the agent can automatically generate visualizations and insights from the data. 

Automated customer service

Routine inquiries and common problems can easily be handled by customer service agents, and complex issues can be forwarded to human representatives. Agents are able to maintain context across multiple interactions and can work across various channels (chat, email, voice) while accessing relevant knowledge bases.

Companies like Zendesk have incorporated AI agents that are able to handle the bulk of customer service interactions that are repetitive or easily answered by an agent. As a result, companies using AI-powered customer agents have reported a 21% reduction in resolution times, as well as an improved capacity to handle increasing volumes of inquiries.

Optimization of marketing and advertising

AI agents can analyze campaign performance, adjust the targeting parameters, reallocate ad budgets across channels, and even generate creative content based on performance data.

Triple Whale’s Moby Agents feature a specific subcategory of agents dedicated to the needs of a Media Buyer, with agents that can pinpoint mid-day marketing performance, pacing, forecasting, and detect spend or performance anomalies before money is wasted on failing campaigns. 

Sales and lead qualification

AI agents can easily qualify leads, nurture prospects through personalized outreach, schedule meetings, and provide sales representatives with contextual information about potential customers. 

Salesforce’s Einstein AI includes agent capabilities that can prioritize leads based on their likelihood to convert and suggest optimal times and methods for follow-up.

Personal productivity assistance

Personal productivity assistants help individuals manage their time, prioritize tasks, and automate routine aspects of their work. They can schedule meetings, draft emails, summarize documents, and filter notifications based on importance. 

Microsoft’s Copilot is an advanced implementation of this type of agent, working across the Microsoft 365 suite to help users draft documents, analyze data, and manage communications more efficiently. 

Benefits of AI agents

There are numerous advantages for businesses and individuals who adopt AI agents, particularly as these technologies continue to mature and improve:

Enhanced efficiency and productivity

AI agents can work continuously without any breaks (unlike humans!), and handle routine tasks consistently. Automation can free human workers to focus on higher-value activities that require creativity, emotional intelligence, and strategic thinking that AI isn’t capable of (yet). 

Salesforce reports that 76% of ecommerce teams that use AI credit it with revenue growth, and 92% of service teams say that AI reduces their costs.

Scalable operations

Unlike human teams, AI agent systems can scale instantly to handle increased workloads, making them particularly valuable for businesses with fluctuating demand patterns. An example where workloads may increase but not necessarily drive a need for a new employee is an ecommerce store’s holiday peak – it would be difficult to hire extra help for only a month or two, but an AI agent can be deployed easily to help scale operations. 

Data-driven decision making

AI agents are able to process vast amounts of data quickly, and also extract actionable insights instantaneously. They’re able to identify patterns and correlations that might be missed by a human analyst, leading to faster and more accurate data to inform business decisions. 

Continuous improvement

With a feedback loop to learn from each interaction, AI agents are naturally able to improve their performance over time without any manual updates, reprogramming, or additional training.

Cost optimization

An upfront investment is necessary to implement AI agents, but they typically will deliver significant cost savings through efficiency, reduced error rates, and optimized resource allocation. According to McKinsey, agents can produce high-quality content to reduce review cycles by 20-60%. 

Challenges and limitations of AI agents

Despite the benefits of AI agents, there are still significant challenges that businesses must address to ensure successful implementation. 

Technical complexity

Sophisticated technical expertise is necessary to deploy effective AI agents, and businesses would need expertise in areas including machine learning, natural language processing, and systems integration. This complexity can make implementation challenging for organizations that don’t have established AI capabilities.

Data quality and availability

AI agents rely on high-quality, relevant data to make efficient decisions. Organizations with fragmented data infrastructures or poor data governance may struggle to provide agents with the information they need to function optimally.

Trust

Autonomous AI agents that engage in decision-making bring up concerns about transparency, accuracy, and explainability become increasingly important. Users and stakeholders need to deeply understand how and why agents make particular decisions, especially in high-stakes environments or regulated industries.

Security and privacy concerns

Since AI agents often require access to sensitive business data and systems, there are potential security vulnerabilities at play. Interactions with users would also mean they could process personal information, which raises privacy concerns that must be carefully managed. 

Integration challenges

When incorporating AI agents into existing workflows and systems, careful management of the change and technical integration is necessary. Organizations need to ensure agents can seamlessly interact with their existing technology stack. 

The future of AI agents

Many key technological developments are pushing AI agents to become increasingly capable of performing complex tasks, meaning they are poised for widespread adoption across a number of industries.

The evolution of AI agents will likely include:

  1. Greater autonomy. Agents will handle increasingly complex tasks with less human oversight, making more consequential decisions independently when appropriate. 
  2. Enhanced collaboration. AI agents will work more effectively alongside humans in collaborative workflows, adapting to individual working styles and preferences.
  3. Multi-agent systems. Organizations will deploy networks of specialized agents working together to solve problems, with different agents handling distinct tasks that operate in tandem. 
  4. Improved natural interaction. Advances in natural language understanding will make interaction with AI agents more intuitive and accessible to non-technical users. 

In AI agents for ecommerce businesses specifically, AI agents will be able to:

  • Autonomously manage entire marketing campaigns across channels
  • Dynamically optimize pricing based on real-time market conditions
  • Personalize the entire customer journey at an individual level
  • Predict inventory needs and manage supply chain relationships
  • Proactively identify and capitalize on emerging market trends

In fact, AI agents like Moby Agents can already do much of the above for ecommerce businesses!

Conclusion

AI agents are a significant advancement in the evolution of artificial intelligence, and move past passive tools to become active participants in achieving business goals. By combining perception, reasoning, action capabilities, and continuous learning, these systems offer unprecedented opportunities for automation across industries.

In the ecommerce space, AI agents can provide powerful ways to optimize operations, enhance customer experiences, and gain competitive advantages in the competitive marketplace. It’s clear that ecommerce brands must adopt AI agent technologies to successfully operate in the future, as it will make many processes easier, faster, and more accurate. Brands that thoughtfully integrate AI agents into their workflows to address pain points will be best positioned to take advantage of their potential. 

Ready to explore how AI agents can transform your ecommerce business? Learn more about Triple Whale’s AI tools for ecommerce and discover how Moby Agents can help you make smarter decisions with your data. 

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