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Why landing a first job is getting harder – and how AI plays a role

By Daniel Reed
November 23, 2025
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AI Tools and Reviews / Intelligent agents in AI: How agents make decisions in artificial intelligence systems
AI Tools and Reviews

Intelligent agents in AI: How agents make decisions in artificial intelligence systems

Learn what intelligent agents are in AI, how they sense, decide and act, and why autonomous AI agents and their decision loops matter for real-world applications.

Daniel Reed
ByDaniel Reed
AI Research, Safety & Ethics Analyst
Daniel Reed currently works as an AI Research, Safety & Ethics Analyst at Aiholics, writing about how changes in artificial intelligence are affecting and will affect...
- AI Research, Safety & Ethics Analyst
Published: December 20, 2025
13 Min Read
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Intelligent agents in AI: how agents make decisions in artificial systems
Image: Adobe Stock
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Every time I scroll through AI headlines, I see the word “agent” everywhere. AI agents, autonomous agents, multi-agent systems. It sounds futuristic and important, but when you actually ask people what an intelligent agent is, the answers are surprisingly vague. Some think it is just a new label for chatbots. Others imagine a kind of mini-CEO that can run a business on autopilot.

Underneath the hype, the core idea is much simpler and much more useful. An intelligent agent in artificial intelligence is simply a system that senses, decides, and acts in an environment to achieve goals. Once you see it like that, the buzzword stops being mystical and becomes a very practical way to think about AI systems.

Recently, it has become clear that the “agent” perspective is starting to shape how real products are built. Instead of treating models as isolated prediction engines, more teams are organizing them as entities that live inside an environment, receive signals, choose actions, and adapt over time. If you want to understand where AI is heading, it is worth getting comfortable with that mental model.Once that loop clicks, the whole conversation about agents becomes much easier to follow. 

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What we really mean by “intelligent agent” in AI

At its core, an agent exists inside some environment. That environment could be a physical space, like a living room for a robot vacuum. It could be a digital world, like a stock market feed, a video game, or a web browser. It can even be a hybrid that mixes sensors in the real world with software tools in the cloud.

Within that environment, the agent is doing three things again and again. It perceives what is going on through some form of input. It decides what to do based on those perceptions and its internal state. Then it acts in a way that changes the environment, even if only slightly. After that action, the environment responds, new information arrives, and the loop repeats.

An AI agent is not just something that answers a one-off question – it is something that continuously senses, decides, and acts in a loop.

You will often see this described with the language of sensors and actuators. Sensors are just the channels the agent uses to observe the world: cameras, text input, microphones, data streams, logs. Actuators are the ways it can respond: motors, keyboard actions, API calls, messages, trades, or other operations.

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When you put it all together, an intelligent agent is less about a particular algorithm and more about this dynamic structure. In that sense, an intelligent agent is defined by its loop: perceive, decide, act, learn. A static classifier that labels images once and never sees the consequences is not really acting as an agent. A navigation system that repeatedly updates its plan as traffic changes is.

Once you start looking at AI systems through this lens, you notice how many of them are quietly becoming agents, even if the marketing language has not caught up yet. 

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How agents actually make decisions

So what is happening inside that loop when the agent decides what to do next? Most agent designs share three ideas: a notion of state, a policy, and some concept of a goal or reward.

State is the agent’s current view of the world. It is not just the latest input; it is everything the agent is remembering or inferring at that moment. Policy is the strategy for choosing actions: given this state, which action should I take? The goal or reward is the signal that tells the agent which outcomes are better than others over time.

difference-machine-learning-artificial-intelligence
Image: Adobe stock

Different agents implement this in very different ways. A very simple reflex agent might behave almost like a set of “if this, then that” rules. A thermostat is a classic example: if the temperature falls below a threshold, turn on the heating. There is no deep understanding there, but it is still a basic agent. More sophisticated, model-based agents maintain an internal picture of the world that goes beyond what they can see right now. A self-driving car does not just react to the pixels in the last frame; it maintains a map of other vehicles, lanes, and likely trajectories, and it updates that map every moment. That internal model lets it reason about things that are not currently visible.

Goal-based agents add another layer. Instead of just reacting, they can explicitly represent desired outcomes and plan sequences of actions that move them closer to those outcomes. Think about a logistics agent that decides how to route deliveries across a city. It is not enough to make one good move; it needs a chain of decisions that works well together.

Then there are agents that use utility or reward functions and learn over time, often through reinforcement learning. These agents experience a stream of states, actions, and rewards, and gradually adjust their policy to maximize long-term value. They might start off exploring in a clumsy way and end up discovering surprisingly effective strategies.

In real systems, most of the intelligence comes not from a single clever model, but from how perception, memory, planning, and action are wired together in the agent architecture.

Recent developments show that many modern “autonomous AI agents” are actually hybrid constructions. A language model might handle reasoning and tool use. A planner might simulate different futures. A critic module might evaluate options against safety rules. The “agent” is the orchestration of all these pieces running inside that sense–decide–act loop.

This is why simply upgrading to a bigger model helps sometimes, but rethinking the agent’s structure can completely change how a system behaves. 

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Autonomous AI agents and the spectrum of autonomy

The word “autonomous” carries a lot of weight. It makes people picture systems that wake up one day and start making their own plans. In practice, autonomy is more like a dimmer switch than a light switch.

On one side, you have agents that are barely autonomous at all. They follow fixed scripts, respond to narrow triggers, and cannot really adapt. Many classic automation flows live here. They are technically agents because they sense and act, but they cannot do much outside their scripts.

In the middle, there are agents that can choose between options, adapt to new situations inside a defined domain, and defer to humans for higher-risk choices. A good customer service assistant that drafts responses, suggests actions, and asks for help when unsure is a nice example of this space.

At the far end, you get agents that can set sub-goals, plan long sequences of actions, interact with other systems, and run for extended periods without direct supervision. These are the kinds of autonomous AI agents that can manage parts of a workflow, run experiments, or participate in more complex multi-agent ecosystems.

That flexibility is exactly why they are both powerful and risky. Poorly specified goals can make smart agents behave in very dumb ways. If you reward an agent only for speed, it might cut corners in ways you did not anticipate. If you reward an agent only for clicks or engagement, it might learn to exploit attention in destructive ways. New findings indicate that a lot of the “weird” behavior people report from autonomous systems is less about the agent being too smart and more about the reward signal being too crude.

Good design tries to counter this in several ways. It adds hard constraints on what the agent is allowed to touch. It routes high-impact actions through human approval or at least human review. It logs the agent’s choices so patterns can be audited. It refines the reward signals when it becomes clear that the agent is learning the wrong lessons.

This is why many practitioners keep repeating that alignment and oversight are not optional extras; they are part of the core design of any serious intelligent agent AI system.

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Key takeaways without the buzzword haze

If I had to condense the whole “agents in artificial intelligence” idea into a handful of thoughts, I would start here. An agent is defined by its ongoing loop with an environment, not by a specific algorithm. The term “intelligence agent in artificial intelligence” is really about this structure: something that perceives, decides, and acts with some notion of goals. Autonomy is not binary; useful agents often live in the middle ground where they are strong collaborators rather than fully independent operators. And a lot of the risk comes from how we specify their goals and constraints, not from raw model power alone.

In other words, when you hear “agent”, it is worth asking very concrete questions. What environment does this agent live in? What does it see? What can it actually do? What is it trying to optimize? And who, if anyone, is watching what it does over time?

Conclusion: Think in loops, not snapshots

For me, the concept of intelligent agents stopped feeling like hype the moment I started thinking in loops instead of snapshots. A one-off model prediction is a snapshot. An agent running inside a product, touching real workflows and systems, is a loop.

Once you see that difference, you cannot unsee it. Every time someone describes a new AI product, you can mentally map it to an agent structure: environment, perceptions, decisions, actions, and feedback. That makes it much easier to spot both the opportunities and the failure modes.

In the end, thinking in terms of intelligent agents is really about respecting the fact that AI systems act, not just predict. When a system can move money, send messages, edit code, or control machines, it is no longer just “a model in the cloud”. It is an active participant in your world.

Design it, govern it, and deploy it as an agent, and the term stops being a buzzword and becomes a useful way to reason about real intelligence in artificial intelligence.

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ByDaniel Reed
AI Research, Safety & Ethics Analyst
Daniel Reed currently works as an AI Research, Safety & Ethics Analyst at Aiholics, writing about how changes in artificial intelligence are affecting and will affect scholarship, society, and human civilization. He reports on breakthroughs in AI research, the development of safety frameworks, discussion of long-term risks, and ethical challenges; he also reports on global shifts in policy and governance. Daniel aims to make complex research papers and long-term thinking accessible to the everyday reader without sacrificing nuance. With his thoughtful and analytical style of writing, Daniel translates advanced topics into clear language. He targets questions that really matter: how safe are today's AI systems, what kind of ethical boundaries do we need, and how could exponential progress affect the way education, jobs, governance, and human values are shaped? His articles are often not just expert opinions but also balanced views and insight into emerging debates that define AI's place in the world. Daniel believes responsible AI development begins with awareness, transparency, and informed public conversation. In terms of his work with Aiholics, he encourages readers to look beyond headlines to understand the promise of artificial intelligence but also some of its consequences.
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