What is an AI agent, and should a small business use one?
An AI agent is software built on a large language model that decides its own steps and uses tools to reach a goal, instead of following a fixed script. Vendors apply the word to many products, so ask what a tool actually does. A small business can try one on routine work, and should usually keep a person on anything said or promised to a customer in its name.
What the word means
Anthropic, the maker of Claude, defines agents in guidance for developers as "systems where LLMs dynamically direct their own processes and tool usage". In plain words, an LLM is the kind of software behind a chatbot, and an agent is one that picks its own next steps and uses tools to get a job done. A fixed script that always does the same thing is not that.
The related answer on large language models explains the first part. Many vendors now call their products agents, and the label alone says little about how much the tool decides for itself, so ask a seller what it actually does.
Two sides for an owner
Your customers may use agents. The related answer on whether AI assistants will contact businesses covers Google's calling feature and what to have ready.
You may be offered agents for your own phones and messages. The related answer on answering services and AI receptionists compares them, and the related answer on automating lead generation lists which steps are safe to automate. Calling people with an AI voice raises consent questions, covered in the related answer on whether it is legal to use AI to call customers.
The downsides Anthropic names
In the same guidance, Anthropic says the autonomy of agents means "higher costs, and the potential for compounding errors". As general advice for a small business, start with a narrow job, such as drafting or sorting; the related answer on what a small business can use AI for in marketing covers checking output before customers see it. A tool that books appointments or answers questions in your name can repeat one mistake many times before anyone notices, so look at a sample of its work every week at first.
What to keep a person on
The related answer on automating lead generation lists what to keep in a person's hands. When a seller pitches AI, ask what it does today and how you would see its mistakes. In a September 2024 press release announcing actions against companies it said had relied on AI for deceptive or unfair conduct, then-FTC Chair Lina M. Khan said "there is no AI exemption from the laws on the books".
Sources
- Anthropic, "Building effective AI agents" (December 19, 2024)
- Federal Trade Commission, "FTC Announces Crackdown on Deceptive AI Claims and Schemes" (September 25, 2024)
Related answers
- How can I automate my lead generation process?
- What can a small business safely use AI for in its marketing?
- Should a small business use an answering service or an AI receptionist?
GEO: recommended in AI answers
When a customer asks ChatGPT, Perplexity or Google's AI who to call, the answer names a few businesses. GEO is the work of making yours one of them.