Anatomy of an Agent

Learn the core components that make up an AI agent and how they work together

Core Concepts

Deep dive into each componentβ€”how they work, what trade-offs exist, and how to choose the right architecture for your use case.

The Four-Layer Agent Architecture

Modern agents are built in layers, from low-level execution to high-level reasoning. Understanding these layers helps you debug failures and optimize performance.

🧠 Reasoning Engine: The Brain

What It Does

The reasoning engine is the LLM that processes inputs, generates thoughts, and decides what to do next. It's the "intelligence" of the agent.

Example Flow:
β†’ Input: "What's the weather in Tokyo?"
β†’ Thought: "I need current weather data, not just general knowledge"
β†’ Decision: Use get_weather tool with location="Tokyo"
β†’ Action: Call tool and wait for result
Model Choice
  • β€’ GPT-4: Best reasoning, expensive ($0.03/1K)
  • β€’ Claude 3.5: Fast, balanced ($0.015/1K)
  • β€’ GPT-3.5: Cheap, less reliable ($0.001/1K)
  • β€’ Open-source: Llama 3, Mixtral (self-hosted)
Prompt Engineering
  • β€’ System prompt defines agent behavior
  • β€’ Few-shot examples improve accuracy
  • β€’ Structured outputs (JSON) reduce errors
  • β€’ Temperature controls creativity (0.0-1.0)
⚑ Performance Trade-offs
Larger models: Better reasoning but slower (2-5s per call)
Smaller models: Faster (200-500ms) but more errors
Best practice: Use GPT-4 for planning, GPT-3.5 for execution

Component Integration: How They Work Together

A single agent task involves all four components working in concert:

1. User Input
"Book a flight to Paris next Friday"
2. Memory Retrieval
Agent recalls: "User prefers morning flights, economy class"
3. Reasoning
LLM thinks: "Need to search flights β†’ compare prices β†’ book best option"
4. Tool Call
Execute: search_flights(dest="Paris", date="2025-11-22")
5. Observation
Tool returns: 15 flights found, prices $450-$890
6. Control Loop
ReAct loop decides: continue to compare prices
7. Memory Update
Store: "Searched flights on 2025-11-15, found 15 options"
8. Final Response
"Found a $450 morning flight departing 8am. Would you like to book it?"

πŸ’‘Key Insights

  • β†’No single "best" architecture: Choose components based on your use case
  • β†’Start simple: ReAct loop + GPT-4 + basic tools β†’ works for 80% of use cases
  • β†’Add complexity only when needed: Don't add memory if tasks are stateless
  • β†’Guardrails are non-negotiable: Production agents must have hard limits