An AI agent is a software system that uses AI to complete specific tasks, make decisions, and take actions aimed at achieving certain goals. It serves as an assistant that not only follows the script but also learns, adapts, and helps customers with their problems with minimal or no guidance.

In this article, we’ll unveil how an AI agent works, its benefits, types, and features. We’ll also explain the difference between an AI agent and a chatbot and cover the use cases.

How does an AI agent work?

All AI agents work using the same processes step by step. They observe, decide, act, and learn. Let’s break down each stage to see how it works.

The first thing you should understand is that they start by collecting data within their environment to fully comprehend the situation. They can analyze various types of input, including text, images, videos, voice messages, and sensor data. When this AI agent is used for customer support, it focuses on the ticket to understand customers’ issues. The second step implies a decision-making process. The agent analyzes user inputs using rules and logic, knowledge bases, and reasoning algorithms. After that, the AI agent determines which action is best to move customers towards the desired outcome or solution.

Once the agent makes a decision, it takes action. It can send a reply, update a database, or trigger a specific workflow. The agent provides users with a comprehensive answer or transfers the chat to human specialists when the issue is too complicated. And, finally, the main benefit of AI agents is that they learn over time and provide even better and more natural responses. Eventually, they can improve customer service by analyzing the results of their actions and adjusting future responses based on customer feedback.

Now that you have an understanding of how AI agents work, it’s time to proceed to the next section and explore their benefits. They will help you decide whether you need to implement AI into your strategy.

Benefits of AI Agents

AI agents offer numerous advantages for businesses, including 24/7 support, accuracy, and optimized customer support. It’s time to explore these and more perks.

  • Around-the-clock availability. Integrating AI agents allows your business to assist users at any time of the day instantly. Since these virtual assistants are always available, they are well-suited for tasks such as customer support, sales inquiries, monitoring, and more. With the help of AI agents, your brand can reach international markets and provide excellent customer support without incurring additional costs.
  • Higher productivity. If AI agents handle FAQs, your customer support team can focus on more urgent tasks that require human interaction. It results in a better user experience and better productivity of your team. Moreover, AI agents resolve issues faster than human specialists, helping speed up response times without adding extra costs.
  • Reduced expenses. Incorporating AI agents can significantly save costs. They can replace a couple of employees, preventing you from needing to hire additional human agents when your business expands, while maintaining quality. This way, AI agents help you cut costs associated with searching for specialists, training them, and paying for overtime.
  • Personalized experience. Similar to chatbots, AI agents use customer data to craft personalized messages for users. It helps them provide responses and offers that are timely and relevant to customers, making them more eager to engage and reach conversion. Besides, AI agents save each user’s preferences and interactions to provide smarter responses tailored to users’ needs, pain points, and preferences.
  • Consistency. When everything is automated and connected to a single knowledge base, your AI agents deliver consistent, accurate answers — unlike human specialists. FAQs stay fact-based and uniform across all platforms, helping you avoid errors, inconsistent responses, or the occasional mood swings that come with tired staff.
  • Constant improvement. The main benefit of AI agents is their ability to learn and provide more relevant answers to each user over time. They analyze previous interactions to improve responses, strategies, and workflows. This optimization enables them to ensure seamless customer experiences.
  • Competitive advantage. Implementing something innovative like an AI agent enables you to outperform your competitors by providing faster customer support, offering tailored to each customer, and assistance to prospects around the clock. If clients are satisfied with your service and product, they will return and eventually become loyal to your brand.

Now that you know the advantages, let’s jump into the types. The next section will help you determine which one is suitable for your company.

Types of AI Agents

You can come across various types of AI agents that differ in their features, learning processes, and levels of independence. They can act differently and have specific limitations. That’s why it’s necessary to choose one based on your specific criteria, scenarios, and primary goals. To understand the difference between them, we invite you to explore the most popular types below.

  • Simple reflex agents. This basic type of agent has predefined rules, and it acts based on them when there is an urge to make decisions. Since these agents don’t save information from previous interactions, they operate smoothly only in predictable environments. This is caused by the absence of a history of communication, which can result in the same mistakes being made again and again. However, sensors and a fixed set of rules enable them to understand the situation and take action.
  • Goal-based agents. As its name suggests, these agents set certain goals and try to reach them by defining the steps. These agents help solve problems by planning specific actions and bringing them to life. They consider future states and how they influence the process of attaining specific goals. However, when it comes to more complex problems, goal-based agents might be inappropriate because they rely on preprogrammed strategies.
  • Model-based reflex agents. Although still relying on condition-action rules, model-based reflex agents scan the current situation and determine how past interactions have affected it. Their internal model helps analyze the environment's chances and make decisions based on them.
  • Learning agents. The main advantage of learning AI agents is that they learn and adapt to new data. This, along with feedback, allows them to optimize their performance over time, make better decisions, and act properly even in uncertain and changing environments. Usually, learning agents operate based on a knowledge base and then improve after analyzing feedback and experiences. They develop new strategies to respond to complex, dynamic situations. A perfect example of an AI agent is a virtual assistant that helps human agents ensure seamless customer experiences.

Now that you know the types, let’s proceed to the features of AI agents.

Features of AI Agents

AI agents have specific features that enable them to operate smoothly for your business. When these core elements are in place, they help you reach your goals efficiently, without needing constant human input or extra interventions that slow things down. Let’s take a closer look at each feature so you know exactly how they support your success.

  • Independent task execution. The main benefit of AI agents is their ability to operate without human involvement. This makes it easier for team members to focus on their primary tasks and boost productivity, as AI agents require minimal human interaction. For this reason, these agents have independent task planning, continuous operation, performance monitoring and improvement, error recovery, and others.
  • Decision making. AI agents make decisions in real time by analyzing various customer situations, assessing different possible answers, and choosing the most relevant one. They adjust responses based on all the data received. These agents are ready to consider several factors and compare different scenarios to provide the best available solution. It is almost the same as what human agents do.
  • The understanding of the context. One more feature of AI agents is their ability to understand context, which brings meaningful conversations to users and leads to conversions. It’s also crucial to handle specific tasks correctly. For this purpose, agents analyze user intent, understand its nuances, and draw on information from previous interactions to provide better and more relevant answers.
  • The ability to adapt in real time. Customer inquiries can change quickly, but AI agents’ adaptability helps them respond to each one in real time. They can reprioritize tasks, adjust the workflow, improve performance, and respond to changing inquiries, which makes them superior to traditional ways of handling customer issues.
  • Predictive capabilities. AI agents can effectively determine what users want due to their analytical abilities. To identify needs and results, they search for patterns in user behavior, identify specific issues, analyze trends, and evaluate possible risks. With all this information at hand, AI agents proactively react to customer problems and assist them whenever needed.
  • Multi-modal abilities. The development of technology, especially artificial intelligence, enables AI agents to provide answers to different types of input, presented in various forms such as text, image, video, voice, etc. This makes them universal tools for managing tasks on various channels and in different shapes.

Now that the features are clear, you might think they are similar to those in chatbots. It’s time to unveil the difference between them and AI agents. Let’s dive in.

How does an AI agent differ from a chatbot?

Often, people think that AI agents are the same as chatbots. However, some essential points make a huge difference between them. Let’s check it out.

Chatbots operate according to specific scripts. Businesses can determine how they act and how they respond to questions after understanding customer intent. Sometimes, when user inquiries are not covered, chatbots might have problems providing relevant and accurate responses. Users can also receive messages saying that the bot doesn’t understand their inquiries, so the only way to get information is to connect to a human agent. It may lead to dissatisfaction and annoyance among customers, having a negative impact on your sales, reputation, and customer loyalty. The situation is different when your bots are AI-powered.

Unlike chatbots, AI agents use large language models. They can analyze human inquiries, better understand them, and deliver consistent experiences across the platforms. With their help, companies can automatically handle not only simple repetitive tasks but also more complex ones that usually require human interaction. Unlike basic bots that rely on scripted replies, AI agents aim to truly understand user intent and respond with more than just generic answers. They’re also built to continuously improve — learning from past interactions to get better over time. As they evolve, AI agents become more fluent in human language, handle complex scenarios with ease, and engage in more meaningful conversations with your customers.

Now that you know the difference, it’s time to proceed to the next section and explore the use cases. They will give you a hint on when and where to incorporate AI agents into your business.

Use Cases of AI Agents

AI agents are universal, meaning that they can be used for different purposes and industries. They can be adapted to various scenarios and personalized customer experiences.

Virtual personal assistants

Virtual personal assistants can be involved in a variety of processes. They schedule events, send messages, search for information, set alarms, create reminders, read messages, make phone calls, and perform many more tasks. The examples include Siri, Alexa, and Google Assistant. Nowadays, they significantly simplify repetitive tasks and processes, allowing people to prioritize other issues.

Customer support

AI-powered agents are great for assisting prospects and customers in different situations. They can support users at various stages of their customer journeys. With AI agents, your business will respond to customer inquiries, handle complaints, and provide relevant offers, as well as book appointments in a natural and accurate way. This leads to happier users who are more likely to return to your brand.

Healthcare assistants

AI agents, such as chatbots, can be widely used in the healthcare industry, providing more relevant answers. They help patients gather all the necessary data, aid in diagnosing specific conditions, schedule notifications for medications, make appointments, and provide details of consultations with doctors. You can also train AI agents to perform some more tasks specific to your healthcare institution.

Financial trading

If you are involved in financial trading, AI agents can become useful tools for analyzing market data and forecasting trends. With trading bots at your disposal, you'll receive timely information, enabling you to make informed and well-thought-out decisions in your financial trading.

Personalized education

Students always welcome personalized experiences when it comes to attaining new knowledge and skills. AI agents can effectively provide them by adapting content after analyzing student performance and behavior. This way, AI agents can provide learners with what they need and ensure that they understand your content. The examples of AI agents incorporated into education include language learning platforms and AI-powered online tutors.

Smart home systems

AI agents can be integrated into smart home systems, where they control lights, temperature, and security based on your commands.

By integrating the latest tools into your business, you not only gain a competitive edge but also draw more customers to your brand. Remember, incorporating artificial intelligence into your strategy is key to keeping your customers happy and driving business growth. After getting to know AI agents better, we hope you’ll consider using them to boost conversions and take your business to the next level!

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