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An AI agent is a modular software tool—typically powered by large language or image models—that is designed to perform narrow, well-defined tasks, such as summarizing documents, extracting data, or automating customer responses. These agents often rely on tool integrations, prompt engineering, and basic reasoning chains to accomplish their objectives within constrained workflows.

Relevance to business: AI agents can automate decision-making processes, reducing the need for human intervention during routine or high frequency tasks, like knowledge management, support ticket triage, and operational reporting.