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Chapter 1 of 4

Models & Agents

The difference between an AI model and an agent, how agents work, and how to choose a model.

What does an AI model do when you give it a prompt?

A model generates a response from the prompt and context it receives. Web searches and file operations require tools.

What turns a model into an agent?

An agent combines a model with tools and a loop. It can act, inspect the result, and decide what to do next.

Which is an example of an agent tool?

Agents use tools to interact with the real world, such as reading files, running commands, browsing, or calling APIs.

Why might you choose a smaller, faster model?

Simple tasks do not always need the most capable model. A faster model can save time and money.

What should an agent do after a tool returns a result?

The agent loop is observe, decide, act, and evaluate. Tool results help the agent choose its next action.

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