When people talk about AI agents today, they often imagine something futuristic that can think, talk, and make decisions. But the truth is, AI agents are already here. And they are working quietly in the background. They answer customer questions, schedule meetings, write code, and even send emails automatically. The reason they can do all this comes down to one idea: they can sense their environment, reason about what to do, and then act. In this article, we will explore how AI agents actually work and look at a real-world example using the OpenAI API. You will see how an agent can use information, make choices, and take action to complete a task without needing constant human help. OpenAI API What Is an AI Agent An AI agent is a system that observes its surroundings, makes decisions, and performs actions to reach a goal. You can think of it as a smart digital worker that not only responds to commands but figures out how to achieve an objective. For example, if you tell your virtual assistant, “Book a meeting with Alex next week” The AI agent doesn’t just understand the words. It checks your calendar, looks up Alex’s schedule, finds a free time slot, and sends an invite. In this simple task, the agent has perceived your request, reasoned about how to fulfill it, and taken action. This same process applies to many systems we already use. When a chatbot answers your question, a car drives itself, or a trading bot makes decisions in real time, they all follow the same pattern. The Core Loop of an AI Agent Every AI agent operates on a simple but powerful idea: it perceives, reasons, and acts. Perception means the agent gathers information about its environment. For a chatbot, this might be reading your text message. For a self-driving car, it could be data from cameras and sensors. The goal is to collect what is happening around it and convert that into something it can understand. Reasoning is when the agent decides what to do next. It takes the information it has just gathered and uses algorithms or machine learning models to figure out the best action. For instance, if a chatbot reads a message that says, “I forgot my password,” it reasons that the correct response is to help the user reset it. “I forgot my password,” Action is the final step. This is where the agent performs the task it decided on. It might reply with a message, execute a command, or control a system. After acting, it observes the results and adjusts if needed. That cycle continues, which allows it to learn and adapt over time. Example: Using the OpenAI API to Send Emails Let’s look at a simple but real-world example. Imagine you run a small business and want an AI agent that automatically sends polite follow-up emails to people who have not replied after three days. The agent should be able to decide who to contact, write a natural message, and send it out on its own. Here’s how that might look in Pseudocode using the OpenAI API: Set up OpenAI API key

Create a list of contacts with names, emails, and their last contact date

Function perceive_environment:
    Create an empty list called pending_contacts
    For each contact in contacts:
        If it has been 3 or more days since the last contact:
            Add the contact to pending_contacts
    Return pending_contacts

Function reason_and_generate_email(contact):
    Create a text prompt asking OpenAI to write a short friendly follow-up email
    Send the prompt to OpenAI model and get the generated email text
    Return the generated email text

Function act_and_send_email(contact, message):
    Display on screen:
        “Sending email to [contact email]”
        The generated message
        “Email sent successfully”

Function ai_email_agent:
    Get list of people who need follow-up by calling perceive_environment
    For each person in that list:
        Generate email text by calling reason_and_generate_email
        Send email by calling act_and_send_email

Run ai_email_agent Set up OpenAI API key

Create a list of contacts with names, emails, and their last contact date

Function perceive_environment:
    Create an empty list called pending_contacts
    For each contact in contacts:
        If it has been 3 or more days since the last contact:
            Add the contact to pending_contacts
    Return pending_contacts

Function reason_and_generate_email(contact):
    Create a text prompt asking OpenAI to write a short friendly follow-up email
    Send the prompt to OpenAI model and get the generated email text
    Return the generated email text

Function act_and_send_email(contact, message):
    Display on screen:
        “Sending email to [contact email]”
        The generated message
        “Email sent successfully”

Function ai_email_agent:
    Get list of people who need follow-up by calling perceive_environment
    For each person in that list:
        Generate email text by calling reason_and_generate_email
        Send email by calling act_and_send_email

Run ai_email_agent This pseudocode demonstrates all three key parts of an AI agent. First, the perception step checks who has not replied in more than three days. This is how the agent observes its environment. It looks through the list of contacts and selects only those that need follow-up. Next, reasoning happens. The agent uses the OpenAI model to generate a personalized email for each contact. It figures out what to say, how to say it, and what tone to use based on the context. It does not rely on pre-written templates but instead creates the message on its own each time. Finally, the action step sends the email. In this example, it prints the message to the screen instead of actually sending it, but in a real system, it could easily connect to Gmail or any email service. Each time the agent runs, it repeats this process. It checks the environment again, decides what to do, and acts accordingly. That continuous loop makes it autonomous and capable of handling tasks without direct control. This example shows that AI agents can go far beyond answering questions. Once connected to real-world tools like APIs, databases, or messaging systems, they can perform actions automatically. The OpenAI model acts as the reasoning engine, while your code acts as the agent’s eyes and hands. In a way, this setup mirrors how humans operate. We observe our surroundings, think about what to do, and then act. The agent does the same, but through code and models. It doesn’t just respond with text; it makes decisions that create real outcomes. Expanding the Idea In larger systems, AI agents handle complex workflows. A customer service agent can read tickets, check user data, and write helpful replies. A coding agent can read a bug report, fix the code, and push updates to GitHub. A data assistant can analyze sales records, summarize insights, and generate visual reports automatically. All these systems share the same core structure. They perceive the world through data, reason using large language models or algorithms, and act through APIs or connected services. How AI Agents Learn Some AI agents improve over time by tracking their own results. For example, if a follow-up email gets a reply, the agent records that as a success. If it gets ignored, it learns to try a different tone or subject next time. This process resembles how reinforcement learning works in machine learning. The agent receives a signal based on the success of its action and adjusts its future decisions to get better results. Over time, it becomes more effective at achieving its goal, whether that goal is getting replies, solving tickets, or reducing response time. The Future of AI Agents Today’s AI agents can already perform useful tasks, but the next generation will be far more capable. They will be able to plan, coordinate multiple steps, and collaborate with other agents. Instead of just sending emails, a future agent could manage your calendar, update spreadsheets, analyze responses, and even handle billing without any human involvement. These systems will not just automate tasks but also make decisions in real time. For example, an agent could analyze customer feedback and automatically suggest product improvements, or a cybersecurity agent could detect a threat and deploy a patch instantly. The challenge ahead is to ensure these agents act responsibly, safely, and in alignment with human goals. Developers will need to focus on transparency, reliability, and ethical behavior as agents become more autonomous. Conclusion An AI agent works by observing, reasoning, and acting toward a specific goal. Its intelligence comes from how it connects these three steps in a continuous loop. As these systems evolve, they will move from simple assistants to autonomous digital workers. Understanding how they function helps us see where the future of automation and intelligence is headed, one where software doesn’t just respond, but acts intelligently on our behalf. Hope you enjoyed this article. Signup for my free AI newsletter TuringTalks.ai for more hands-on tutorials on AI. You can also find visit my website. Hope you enjoyed this article. Signup for my free AI newsletter TuringTalks.ai TuringTalks.ai TuringTalks.ai for more hands-on tutorials on AI. You can also find visit my website visit my website visit my website .

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How AI Agents Actually Work

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