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Gary Constable AKA GhostFrog

Builder of AI Agents, Data Pipelines & Automation Systems

AI Agents Under the Hood: What They Actually Do (Not the Hype Version)

2025-12-11

Agents aren't magic. They're:

  1. a planner
  2. an executor
  3. a memory layer
  4. a loop holding it together with duct tape

🤖 What an agent is

An AI agent is:

an LLM that can call tools, inspect results, decide next actions, and loop until done.

🛠️ Tools

Tools are functions the LLM can call:

  • Python
  • APIs
  • SQL
  • file operations

LLMs with tools = applications.
LLMs without tools = chatbots.

🔁 The loop

  1. LLM decides action
  2. Calls tool
  3. Gets output
  4. Reflects
  5. Replans

The hard parts: retries, timeouts, bad JSON, hallucinated arguments, infinite loops.

🧠 Memory types

  • short-term
  • working memory
  • long-term vector store
  • episodic history
  • procedural rules

🧱 Industry architecture

Production agents use:

  • planner LLM
  • executor
  • tool registry
  • memory layer
  • safety checks
  • observability / logs

🐸 Bob + Chad

Bob = planner.
Chad = executor.

Exactly how industry agents work.

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