How AI Agents Work: Tools, Builders & the Internal Architecture

Video by H2O.ai via YouTube
How AI Agents Work: Tools, Builders & the Internal Architecture

Knowing what an agent can do is one thing. Knowing how it works inside is another, and it is more structured than most people expect.

Give a general-purpose agent a goal and it plans the steps, picks its tools, executes, checks its own results, self-corrects when something looks wrong, and delivers a summary or output files. Plan, act, check, self-correct, deliver. That loop is what separates an agent from a chatbot.

Terms covered:
– Agent Tools: the specific actions an agent can take, from web search to running code to calling APIs
– Tool Builder: creating custom tools so an agent can reach internal databases, custom APIs and legacy systems
– Agent Builder: the environment where you set the agent’s goal, tools, instructions and constraints, without deep engineering

The internal loop gives it intelligence. The tools define its reach. The builder is how you put it together.


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