conbersa.ai
AI6 min read

What Is an AI Agent?

Neil Ruaro·Founder, Conbersa
·
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An AI agent is an autonomous software system that perceives its environment, reasons about goals, and takes actions to achieve them - without requiring a human prompt at every step. Unlike traditional chatbots that respond to one query at a time, AI agents can plan multi-step tasks, use external tools, and adapt their approach based on results.

The global AI agents market reached approximately $7.6 to $7.8 billion in 2025 and is projected to hit $10.9 billion in 2026. That growth is not slowing down. The market is expected to reach $182.97 billion by 2033 at a CAGR of 49.6%.

AI agents are no longer experimental. They are becoming core infrastructure for how companies operate.

How Are AI Agents Different from Chatbots?

The distinction matters. A chatbot waits for your input, generates a response, and stops. An AI agent receives a goal and figures out how to accomplish it.

Three capabilities separate agents from simple chat interfaces:

  • Autonomy. Agents operate across multiple steps without needing human input at each one. You give them a goal - they determine the path.
  • Tool use. Agents can call APIs, search the web, read databases, execute code, and interact with external systems. A chatbot just generates text.
  • Goal-directed behavior. Agents maintain context about what they are trying to achieve and adjust their strategy when something does not work.

When you ask a chatbot to "find me the best CRM for a 10-person startup," it gives you a list. When you ask an AI agent the same thing, it researches options, compares pricing, checks reviews, and presents a recommendation with reasoning.

How Do AI Agents Work?

AI agents follow a perception-reasoning-action loop. This cycle repeats until the agent achieves its goal or determines it cannot proceed.

Perception

The agent takes in information from its environment. This could be user instructions, API responses, database queries, web search results, or sensor data. The agent parses this input into a format it can reason about.

Reasoning

Using a large language model as its core, the agent evaluates the current state against its goal. It decides what action to take next. Modern agents use techniques like chain-of-thought reasoning and prompt engineering to improve decision quality.

Action

The agent executes its chosen action - calling a tool, generating output, or modifying its environment. It then observes the result and feeds it back into the perception step.

This loop is what makes agents powerful. They do not just respond - they iterate.

What Are the Main Types of AI Agents?

AI agents fall into several categories based on their complexity and capabilities.

Simple Reflex Agents

These operate on condition-action rules. If a support ticket contains the word "billing," route it to the billing team. No memory, no planning - just pattern matching. Simple but effective for narrow tasks.

Goal-Based Agents

These agents maintain an internal model of their goal and plan steps to reach it. They can evaluate multiple possible actions and choose the one most likely to succeed. Most modern AI coding assistants fall into this category.

Learning Agents

The most sophisticated type. These agents improve their performance over time by learning from outcomes. They adjust their strategies based on what worked and what did not. Recommendation engines and adaptive content systems use this approach.

Multi-Agent Systems

Multiple specialized agents working together on a complex task. One agent handles research, another handles writing, a third handles quality checks. Agent orchestration coordinates these systems.

What Are the Top Use Cases for AI Agents?

According to DemandSage, 85% of organizations have adopted AI agents in at least one workflow, and 79% of employees now utilize AI agents in their daily work. Here is where they are making the biggest impact.

Content Operations

AI agents can research topics, draft content, optimize for SEO, and schedule publishing across channels. For startups managing social media at scale, agents handle the repetitive work of adapting content across platforms and accounts.

At Conbersa, we have seen firsthand how agent-driven content workflows let small teams produce output that would otherwise require a full content department.

Customer Support

Agents triage incoming tickets, answer common questions using RAG-powered knowledge bases, and escalate complex issues to humans. They reduce response times and free support teams to focus on problems that need human judgment.

Coding and Development

AI coding agents can write functions, review pull requests, debug issues, and refactor code. They work alongside developers rather than replacing them - handling the tedious parts so engineers focus on architecture and design.

Research and Analysis

Agents that can search the web, read documents, and synthesize findings are transforming how teams do market research, competitive analysis, and due diligence.

Why Should Startups Care About AI Agents?

The agentic AI market is projected to reach $199.05 billion by 2034 at a 43.84% CAGR. This is not a trend to watch from the sidelines.

For startups specifically, AI agents offer three advantages:

  1. Do more with less. A 5-person team using AI agents effectively can match the output of a 15-person team without them. Agents handle the repetitive, time-consuming work.
  2. Move faster. Agents work around the clock. Content gets drafted overnight. Support tickets get triaged instantly. Research that took days happens in hours.
  3. Scale without proportional headcount. As your workload grows, you add agent capacity rather than hiring for every new task.

The startups that build agent-powered workflows now will have a structural advantage over competitors who wait.

What Are the Limitations of AI Agents?

AI agents are powerful but not infallible. Key limitations include:

  • Hallucination risk. Agents built on LLMs can generate confident but incorrect information. Grounding techniques like RAG help, but human oversight remains essential for high-stakes outputs.
  • Context window constraints. Agents can lose track of earlier steps in very long task sequences. Breaking complex workflows into smaller agent-managed chunks helps.
  • Tool reliability. An agent is only as good as the tools it can access. If an API goes down or returns bad data, the agent's output suffers.
  • Cost at scale. Every LLM call costs money. Agents that make many reasoning steps per task can get expensive. Optimizing agent architecture to minimize unnecessary calls matters.

The practical approach is to start with well-scoped agents for specific workflows, validate their output, and expand from there. Treat AI agents as capable team members that still need supervision - not as replacements for human judgment.

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