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Home » Artificial Intelligence

The Rise of AI Agents: What They Are and How They Work

Published on: May 2026 • Last Updated: June 5, 2026
Sofia Ramirez
Written By
Sofia Ramirez
Sofia Ramirez
Senior Tech Writer • 441 Articles
Sofia Ramirez is a technology and cybersecurity writer at SQ Magazine. With a keen eye on emerging threats and innovations, she helps reader...
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Robert A. Lee
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Robert A. Lee
Robert A. Lee
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Robert A. Lee is a journalist at SQ Magazine who unpacks the fast-moving worlds of gaming and internet trends. He tracks everything from maj...
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The Rise of AI Agents
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AI agents on WebArena, the benchmark for autonomous web tasks, climbed from 15% in 2023 to 74.3% in early 2026, putting them within 4 percentage points of human performance, according to Stanford HAI. Yet over the same period, agent deployment sat in the single digits across nearly all business functions surveyed by McKinsey, with over two-thirds of respondents reporting no use of AI agents in most business scenarios, per Stanford HAI’s accompanying takeaways.

That gap between what agents can do and what they actually do at work is the defining feature of agentic AI. Capability is up. Deployment is not. Naming the mechanism that powers an agent, and the limits that keep it on a leash, is the prerequisite for understanding why.

Key Takeaways

  • AI agents reached 74.3% on the WebArena benchmark in early 2026, up from 15% in 2023, within 4 percentage points of human performance, per Stanford HAI’s AI Index.
  • On SWE-bench Verified, the test for autonomous software engineering, agents rose from 60% to near 100% of the human baseline in a single year.
  • AI agents handling cybersecurity issues solved problems 93% of the time, compared to approximately 15% in 2024, per the same Stanford report.
  • Despite the gains, 70% of organizations now use generative AI in at least one business function, but agent deployment specifically sits in the single digits.
  • Anthropic defines agents as systems where LLMs dynamically direct their own processes and tool usage, while workflows orchestrate LLMs through predefined code paths.
  • OpenAI describes agents as LLMs equipped with instructions and tools, running inside a built-in loop that handles tool invocation until the task is complete.
  • Russell and Norvig group agents into five classical classes: simple reflex, model-based reflex, goal-based, utility-based, and learning agents.

What Is an AI Agent?

An AI agent is a system or program capable of autonomously performing tasks on behalf of a user or another system by designing its workflow and using available tools, according to a recent arXiv survey of agent architectures. The vocabulary varies by vendor: according to Anthropic and per OpenAI’s Agents SDK documentation, the underlying idea is consistent across academic and industry sources.

The three most cited definitions sit close to each other once jargon is stripped away.

SourceDefinition
Anthropic (2024)Systems where LLMs dynamically direct their own processes and tool usage, maintaining control over how they accomplish tasks
OpenAI Agents SDKLLMs equipped with instructions and tools, running in a built-in loop that handles tool invocation
Russell and NorvigAnything that perceives its environment using sensors and acts upon it using actuators
arXiv survey (2025)A system that autonomously performs tasks on behalf of a user by designing its workflow and using available tools

Sources: Anthropic, OpenAI, Russell and Norvig, arXiv agent survey.

Key finding: Anthropic separates the category into two halves: workflows are “systems where LLMs and tools are orchestrated through predefined code paths,” while agents are “systems where LLMs dynamically direct their own processes and tool usage.” The distinction matters because most production deployments today are workflows, not agents.

Naming the system is half the work. The other half is naming the loop the system runs in.

The Perception, Reasoning, Action Loop

At the core of every modern agent, the arXiv survey on agent evolution describes a process where the agent perceives its environment, reasons about what to do, and takes an action. Each iteration pulls fresh ground truth from the environment before the next decision.

The components break down as follows:

  • Perception: Natural language understanding modules interpret user input and extract entities and intents, plus visual or audio inputs in multimodal agents
  • Reasoning: Deductive, inductive, and abductive reasoning select an appropriate next action
  • Planning: modules construct sequences of actions that look multiple steps ahead
  • Action and tool use: The agent invokes external tools, APIs, and services to act on the world
  • Memory: Episodic memory stores specific interactions, semantic memory organizes conceptual knowledge, procedural memory stores action sequences
  • Observation: The agent reads back the result of the action and updates its state

Anthropic stresses that during execution, agents must gain ground truth from the environment at each step, such as tool call results or code execution. The OpenAI Agents SDK encodes the same idea as a built-in agent loop that handles tool invocation, sends results back to the LLM, and continues until the task is complete.

StageWhat it doesExample
PerceptionReads input from user or environmentParses a support ticket
ReasoningSelects next action from optionsDecides to look up the customer’s order
PlanningBuilds a multi-step path to the goalPlans look up, refund, notify, log
ActionCalls tools or APIsCalls the order management API
MemoryStores interaction for later stepsRecords the ticket ID and resolution
ObservationReads tool output, updates stateConfirms refund processed

Sources: Anthropic, OpenAI Agents SDK documentation, arXiv agent survey.

The loop is universal. The agents that run inside it are not.

Five Classical Types of AI Agents

The textbook classification, attributed to Russell and Norvig, sorts agents into five classes: simple reflex, model-based reflex, goal-based, utility-based, and learning agents. The taxonomy predates large language models but still anchors how researchers describe agent capability.

Simple reflex agents act only on the basis of the current percept, ignoring the rest of the percept history. Model-based reflex agents handle partially observable environments by maintaining an internal structure that describes the part of the world the sensors cannot reach. Goal-based agents use goal information about desirable situations to choose among multiple possibilities. Utility-based agents employ a utility function that maps a state to a measure of its utility. Learning agents feature a separation between a learning element, responsible for improving performance, and a performance element, responsible for choosing external actions.

TypeDecision ruleModern example
Simple reflexIf condition then actionSpam filter on a single rule
Model-based reflexMaintains world model for partial observabilityRobot vacuum mapping rooms
Goal-basedPlans actions toward a desirable stateGPS route planner
Utility-basedMaximises a utility function over outcomesAlgorithmic trading system
LearningImproves performance over timeLLM fine-tuned with feedback

Source: Russell and Norvig, Artificial Intelligence: A Modern Approach.

The five classes still describe the decision logic. What has changed is the substrate. Modern LLM-based agents typically combine elements of all five: reflex behaviour for trivial inputs, a memory-backed world model for context, explicit goals from the system prompt, utility-style ranking when scoring tool outputs, and learning baked into the underlying model weights.

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Modern Agent Architectures

Beyond the classical taxonomy, three architectural patterns dominate the agent landscape that engineering teams build today: single-LLM agents, multi-agent systems, and hybrid agents that mix reactive and deliberative components. OpenAI’s Agents SDK encodes the multi-agent pattern through handoffs, which the documentation calls a powerful mechanism for coordinating and delegating work across multiple agents.

A typical production stack now looks like this:

  • Single-LLM agent: One model, one toolbelt, one loop. Suits well-scoped tasks like ticket triage or document summarisation.
  • Multi-agent system: A coordinator hands off subtasks to specialist agents. Frameworks such as CrewAI (role-based), AutoGen (conversation-based), and LangGraph (graph-state) sit in this slot.
  • Hybrid agent: Combines a reactive layer for instant responses with a deliberative layer for multi-step planning. Common in customer-service automation where some intents need a one-shot answer, and others need investigation.

The arXiv agent survey describes perception in modern agents as natural language understanding modules that interpret user input and extract entities and intents. That perception layer is what feeds the rest of the loop, and it is also what stretches the testing surface in unpredictable ways.

SQ Magazine’s Claude vs ChatGPT data shows capability rankings shift every six months, but search trends suggest public perception lags by over a year. The agent deployment lag fits the same pattern: the capability is current, the operating model is not.

AI Agents vs Chatbots vs RPA

RPA is process-driven, whereas AI is data-driven. RPA automates tasks; AI automation automates decisions and outcomes. A chatbot generates text. RPA scripts deterministic UI actions. An agent does both, plus reasoning over which to do when. Tool use, memory, and autonomy are the practical dimensions where the categories pull apart.

CapabilityTraditional chatbotRPA botAI agent
Tool / API callsNoLimited, scriptedYes, dynamic
Persistent memorySession onlyNoneShort-term plus long-term
Multi-step planningNoPredefinedAdaptive
Reasoning over inputPattern matchingNoneLLM-driven
Behaviour on novel inputFalls back to humanBreaksRe-plans or escalates
Best fitFAQ deflectionStable, repetitive UI tasksOpen-ended, exception-heavy work

Sources: SS&C Blue Prism, OpenAI Agents SDK documentation, IBM Think (AI agents overview).

The framing puts the divide bluntly: RPA automates tasks while AI automation automates decisions and outcomes; RPA robots perform the same way every time and will not improvise, while an AI agent takes a goal as input and figures out how to reach it autonomously. The two technologies increasingly cohabit in 2026: agents handle reasoning and orchestration, RPA handles deterministic execution against legacy interfaces.

The difference shows up most clearly in real deployments, which is also where the headline benchmark numbers stop telling the whole story.

Where AI Agents Show Up Today

Four production patterns now account for most agent deployment outside research labs: coding agents, customer-service triage, autonomous research, and security-task automation. The performance numbers behind each have moved fast enough to confuse anyone who last checked in earlier years.

  • Coding agents: On SWE-bench Verified, the autonomous software-engineering benchmark, agent performance rose from 60% to near 100% of the human baseline in a single year, per Stanford HAI’s 2026 AI Index. Tools such as Claude Code and OpenAI Codex sit in this bucket.
  • Customer service triage: A coordinator agent classifies intent and hands off to specialist agents per category, each with access to CRM tools, documentation search, and ticket creation, with human escalation when confidence is low.
  • Autonomous research: A research pipeline runs a web-search agent, a summarisation agent, and a formatting agent in parallel over a set of sources, returning a structured brief.
  • Cybersecurity task automation: Stanford HAI’s 2026 AI Index reports that AI agents handling cybersecurity issues solved problems 93% of the time, compared with approximately 15% in 2024.

For a deeper look at where these systems sit in the broader market, see SQ Magazine’s AI agent adoption data.

By the numbers: Stanford HAI’s 2026 AI Index documents four agent benchmark gains documented between 2023 and 2026: WebArena 15% to 74.3%, OSWorld roughly 12% to 66.3%, SWE-bench Verified 60% to near 100% of the human baseline, and cybersecurity tasks 15% to 93%. Each line steepens at a different rate, which complicates any single capability claim about agents in general.

The Capability-Deployment Gap

The most striking finding in the latest AI Index is not a single benchmark number. It is the gap between capability and deployment: agents are approaching human-level performance on real computer tasks, yet agent deployment still sits in single digits across nearly all business functions, per Stanford HAI. McKinsey’s survey behind the figure reports that over two-thirds of respondents had no use of AI agents in most business scenarios.

Three forces explain the lag. First, cost: Anthropic’s own guidance warns that the autonomous nature of agents means higher costs and the potential for compounding errors. Second, governance and integration: a misbehaving agent that touches customer data, payments, or production code is a risk most enterprises have not yet operationalized, and agents still need clean tool interfaces, reliable identity, and an audit trail.

What Could Go Wrong

Anthropic recommends extensive testing in sandboxed environments along with appropriate guardrails. The risk profile of an agent is qualitatively different from a chatbot’s because the action surface is larger. A chatbot can mislead a user; an agent can take an action that has financial, security, or compliance consequences.

The practical YMYL implications come down to three rules.

  • Sandbox first: Agents that can write to production systems must first run end-to-end against a copy of those systems, with the same authentication and rate limits.
  • Compounding errors: A 95% per-step success rate becomes roughly 60% over ten steps. Multi-step plans amplify any individual mistake, so step-level monitoring matters more than headline accuracy.
  • Human approval gates: High-impact actions, including refunds above a threshold, code merges to main, or data exports, should require explicit human sign-off rather than silent execution.

Agents that follow these rules help reduce risk in day-to-day operations. Agents that skip them do the opposite. The framing matters: agents are an accelerant, not a guarantee.

Frequently Asked Questions (FAQs)

Is an AI agent the same as ChatGPT?

No. ChatGPT is primarily a chatbot interface to a large language model. An AI agent uses an LLM as one component but adds tool use and a built-in loop that handles tool invocation and continues until the task is complete, per the OpenAI Agents SDK documentation. Agentic features such as web browsing and code execution layer on top of a chat interface but require the loop to qualify.

Do AI agents replace traditional chatbots?

Not entirely. Chatbots remain the cheaper option for FAQ deflection and simple intent routing. In practice, AI agents tend to outperform RPA when the task requires multi-step planning, tool calls, or recovery from unexpected inputs. RPA robots perform the same way every time and will not learn from one repetition to another, per SS&C Blue Prism.

What tools do AI agents use?

Tools include any callable interface: function tools convert Python functions into tools with automatic schema generation, and handoffs let agents delegate to other agents, per the OpenAI Agents SDK documentation. Common tool categories are REST APIs, CRM systems, code interpreters, database queries, file readers, browser automation, and payment gateways.

Are AI agents safe to deploy in production?

Safety depends on scope. Agents operating in sandboxed environments with read-only tools carry low risk. Anthropic recommends extensive testing in sandboxed environments along with appropriate guardrails, noting that the autonomous nature of agents means higher costs and the potential for compounding errors.

How are AI agents different from RPA?

RPA automates tasks while AI automation automates decisions and outcomes, and where robotic process automation requires explicit instructions for every step, AI automation can generalize across scenarios. Most automation programmes today run both: agents handle reasoning, RPA handles deterministic execution.

Which frameworks do developers use to build AI agents?

OpenAI’s Agents SDK centers on three primitives: agents, handoffs between agents, and guardrails for validation, per the SDK documentation. Other widely cited frameworks include Anthropic’s tool use and computer use APIs, LangGraph for graph-state orchestration, CrewAI for role-based multi-agent setups, and AutoGen for conversation-based collaboration.

Conclusion

AI agents jumped from 15% to 74.3% on the WebArena benchmark over three years, yet deployment in business functions still sits in the single digits, per Stanford HAI’s 2026 AI Index. The mechanism is consistent across vendor framings: agents are systems where LLMs dynamically direct their own processes and tool usage, while workflows orchestrate LLMs through predefined code paths, per Anthropic.

The practical lesson for developers: treat agents as workflows by default and graduate to fully autonomous loops only where the task genuinely needs them. For operations teams: invest in tool interfaces, identity, and audit trails before the model layer becomes the bottleneck. The organizations that close the deployment gap first will be the ones that already trust their plumbing.

This article has been reviewed and fact-checked by Robert A. Lee. SQ Magazine follows strict Publishing Principles and a documented Fact-Check Policy to ensure accuracy, transparency, and editorial independence across all content.

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References

  • Building Effective Agents
  • The 2026 AI Index Report
  • OpenAI Agents SDK Documentation
  • Intelligent Agent (Russell and Norvig classification)
  • AI Agents: Evolution, Architecture, and Real-World Applications
  • Stanford’s AI Index for 2026 Shows the State of AI
  • RPA vs AI Agents: Comparing AI Agents and RPA Bots
  • Inside the AI Index: 12 Takeaways from the 2026 Report
Sofia Ramirez

Sofia Ramirez

Senior Tech Writer


Sofia Ramirez is a technology and cybersecurity writer at SQ Magazine. With a keen eye on emerging threats and innovations, she helps readers stay informed and secure in today’s fast-changing tech landscape. Passionate about making cybersecurity accessible, Sofia blends research-driven analysis with straightforward explanations; so whether you’re a tech professional or a curious reader, her work ensures you’re always one step ahead in the digital world.

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Table of Contents

  • Key Takeaways
  • What Is an AI Agent?
  • The Perception, Reasoning, Action Loop
  • Five Classical Types of AI Agents
  • Modern Agent Architectures
  • AI Agents vs Chatbots vs RPA
  • Where AI Agents Show Up Today
  • The Capability-Deployment Gap
  • What Could Go Wrong
  • Frequently Asked Questions (FAQs)
  • Conclusion
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