Lesson 6 of 13

How Agents Think and Act

How Agents Make Decisions

2 min read

When an agent faces a choice—which tool to use, what to research next, how to structure a response—it's making a decision. Understanding this process helps you guide agents more effectively.

The Decision Process

At each step, an agent weighs several factors:

1. Goal Alignment

"Does this action move me toward the objective?"

An agent writing a market analysis won't suddenly start booking flights—unless the analysis requires travel cost data.

2. Available Tools

"What can I actually do here?"

Agents can only use tools they've been given. If an agent has email access but not calendar access, it can send meeting requests but not schedule them directly.

3. Information Completeness

"Do I have everything I need?"

If an agent needs data it doesn't have, it decides whether to:

  • Ask you for it
  • Search for it
  • Make reasonable assumptions
  • Proceed without it

4. Confidence Level

"How sure am I about this action?"

Well-designed agents express uncertainty rather than guessing blindly. They might say "Based on available data, the most likely answer is..." rather than stating unfounded claims as facts.

What Influences Quality

Several factors affect how well agents decide:

Clear instructions — Vague goals lead to vague actions. "Improve this document" is harder than "Make this document more concise and add three examples."

Relevant context — The right background information helps agents make better choices.

Appropriate constraints — Sometimes telling an agent what NOT to do is as important as the goal. "Research competitors but don't contact them directly."

Feedback loops — Agents that can check their work catch more errors.

When Agents Should Pause

Good agents recognize when to ask rather than assume:

  • Ambiguous requirements ("Do you mean revenue or profit?")
  • High-stakes decisions ("This will delete the data. Confirm?")
  • Missing critical information ("I need access to the database to continue")
  • Conflicting instructions ("Earlier you said X, now you're asking for Y")

The Human-Agent Partnership

Think of working with agents as a collaboration:

  • You provide goals, context, and judgment calls
  • The agent handles research, execution, and iteration
  • Together you accomplish more than either could alone

The best results come from clear communication about what you want and trust in the agent's ability to figure out how to get there.

In the next module, we'll explore practical ways to work with AI agents day-to-day.

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Quiz

Module 2 Quiz: How Agents Think and Act

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