Explaining Agentic AI

Objective

After completing this lesson, you will be able to describe agentic AI capabilities and benefits

Introduction

This lesson explores agentic AI in detail. Unlike traditional AI, agentic AI adapts, learns, and comprehends context through machine learning and natural language processing. The lesson covers the types, capabilities, and benefits of AI agents, showing how they enhance real-time business performance by mimicking human reasoning.

Key Capabilities of AI Agents

AI agents are advanced digital systems equipped to perform (multi-step) tasks autonomously, learn from their experiences, and adapt dynamically.

The image describes the four main capabilities of AI Agents: Planning, Reflection, Tools Usage, and Collaboration and Multi-Agent. The details are described in the text that follows.

Recent advancements in generative AI empower them to execute multi-step complex tasks with greater autonomy and flexibility beyond simple automation.

  • Planning: Agents go beyond executing single actions: they break down complex problems, map out a path, and orchestrate a sequence of steps to efficiently achieve a goal.
  • Reflection: AI agents reflect on their own actions in real time and learn from mistakes. They self-correct errors, and process complex issues through iterative reasoning until they find the best solution. This iterative approach is what allows them to handle more irregular, complex issues and situations that they have never encountered previously.
  • Tool Usage: Agents gather data and use external tools, such as calculators, APIs, and databases, expanding beyond their built-in capabilities and broadening the scope of tasks they can accomplish.
  • Collaboration and Multi-Agent Interactions: AI agents aren’t limited to working solo. They can collaborate with humans and other specialized agents to achieve a common goal and collaborate with business users to review recommendations and approve actions that impact the business. This creates a collaborative ecosystem where different agents bring unique expertise to achieve a goal, allowing humans to delegate time-consuming tasks while staying in the loop whenever human judgment and oversight is needed.

Generative AI enhances these agents' power, allowing them to process complex data and generate contextual outputs like code, text, or media. With these capabilities, AI agents manage intricate, multi-step problems independently and effectively. As generative AI progresses, AI agents will navigate and solve complex challenges, advancing the potential of autonomous systems.

Types of AI Agents

AI agents can exist in various forms, allowing organizations to combine them into customized multi-agent systems tailored to specific needs. Here are six types of AI agents and how they work best:

Reactive Agents:

  • These agents use rule-based systems to respond to prompts autonomously.
  • Ideal for repetitive tasks, like using chatbots to reset passwords.
  • Limited memory means they handle only short-term scenarios, but they require little maintenance.

Proactive Agents:

  • They use predictive algorithms to identify patterns and forecast outcomes.
  • They can act without human input and are good for complex systems like supply chains.
  • Spot issues and recommend solutions automatically.

Hybrid Agents:

  • These agents combine the quick responses of reactive agents with the adaptability of proactive agents.
  • They efficiently handle predictable scenarios and adjust to changes.

Utility-Based Agents:

  • These agents focus on finding the best way to achieve a desired outcome by grading each action.
  • They can drive systems like car navigation, robotics, and financial trading with the highest user satisfaction.

Learning Agents:

  • These agents can improve by learning from past experiences.
  • They can try new strategies, collect data, and adapt over time.
  • They can even develop virtual assistants that adjust to users’ needs.

Collaborative Agents:

The image depicts 4 types of collaborative agents: Collection agents, support agents, email agents, and invoice agents. More details are provided in the text that follows.
  • These agents can coordinate with other agents to tackle complex tasks.
  • They operate across different areas, building workflows and delegating tasks to people and other AI agents.

This is where Joule Agents stand out because they can collaborate across the entire suite of business functions and applications in organizations.

To provide a clearer understanding of the different types of AI agents and their operational capabilities, the following table summarizes their characteristics and functions:

Type of AI AgentCharacteristicsFunctions
Rule-based AI AgentsFollow preset conditions with little or no memoryHandle simple, repetitive tasks
Utility-based AgentsGrade each action to find the best way to achieve desired outcomesCar navigation, robotics, financial trading
Learning AgentsImprove by learning from past experiences, try new strategies, and adapt over timeDevelop virtual assistants that adjust to users' needs
Collaborative AgentsCoordinate with other agents to tackle complex tasksBuild workflows, delegate tasks to people and other AI agents
Autonomous AI AgentsIndependently choose actions, craft plans, gather data, and use toolsManage complex functions, improve over time by analyzing feedback

AI agents operate on a spectrum of flexibility. At one end are rule-based AI agents with little or no memory that handle tasks by following preset conditions. On the other end, the most autonomous AI agents manage more complex functions. They can independently choose actions, craft plans, gather relevant data, and use various software tools to complete each step. As they learn from new information, these AI agents improve over time by analyzing feedback, correcting errors, and solving new problems. Multiple AI agents can also collaborate, even working alongside humans to accomplish diverse tasks.

Benefits of Using AI Agents

AI agents offer significant benefits, providing advanced reasoning and learning capabilities that exceed standard solutions. When integrated into business workflows, they help companies grow and adapt.

  • Boost Productivity and Accuracy:

    AI agent tools manage decision-making for complex tasks, improving efficiency by reducing human intervention and maintaining high accuracy through self-monitoring and error correction.

  • Expand Availability:

    Agents work continuously, handling tasks and customer inquiries beyond regular office hours.

  • Relieve Team Workloads:

    Agents can help in creating adaptable workflows that can free teams from operational tasks, enabling focus on strategic projects and innovation.

  • Reduce Costs:

    Automation through AI agents can lower expenses by eliminating inefficiencies and errors associated with manual processes.

  • Facilitate Collaboration:

    Networks of collaborative agents streamline data collection and workflows across departments, breaking down silos in complex projects.

  • Get Customized Results:

    Businesses can create custom agents trained on internal data for precise, and get customized results.

  • Adapt and Scale:

    AI agents easily accommodate increasing task volumes, supporting business expansion without losing performance or quality.

  • Identify Trends:

    They analyze data to detect patterns and offer insights into future outcomes, improving decision-making.

An Example of How AI Agents Work

AI agents, despite varying in complexity, share common features in their functionality. Here’s a breakdown of how AI agents work, using an advanced agent handling a complex procurement order as an example:

Employ Natural Language

AI agents utilize natural human expression, enabling users to interact conversationally through interfaces. They use LLMs, a type of generative AI, to interpret and produce human-like speech and text.

Example: Through a chatbot, a user asks an AI agent to select a third-party supplier that aligns with company priorities, like cost-effectiveness.

Design a Plan

AI agents create plans to complete tasks, adapting and adjusting rather than strictly following predefined steps. They use internal decision-making to develop new workflows.

Example: Based on user instructions, the AI agent constructs a custom workflow to identify the best supplier, gathering necessary data and software tools for each stage.

Use Software Tools

AI agents integrate various tools to complete complex workflows. These tools allow agents to collect and analyze data, run new code, communicate, and manage automatic functions.

Example: The AI agent employs document and web search tools to gather company policy and supplier information from emails, PDFs, databases, and websites. It uses coding and calculator tools to compare supplier quotations and payment terms. Within minutes, the agent recommends a third-party supplier and employs LLM tools to generate a detailed report.

AI Copilots and AI Agents

The image features three key sections: Intuitive Interaction and Customization, Collaborative Partnership, and Dynamic Functionality. Intuitive Interaction emphasizes user interfaces, natural language facilitation, and no-code platforms. Collaborative Partnership highlights deep business data integration and seamless cooperation among agents. Dynamic Functionality highlights catering to automated tasks, offering real-time assistance, and facilitating both autonomous operations and human input.

On the surface, AI agents and AI copilots may seem similar, but they have distinct roles. AI copilots are personal virtual assistants integrated into business applications to support tasks using data and computation. However, combining them with multi-agent systems enhances decision-making and collaboration. Here’s how copilots and agents work together to tackle challenges and improve productivity.

Intuitive Interaction and Customization

Conversational AI allows copilots to serve as user-friendly interfaces for managing agents. Users can interact with agents through natural language, directly within their core applications. Copilots also offer low-code or no-code platforms to build and scale custom intelligent agents, providing guided workflows to define necessary tools, data sources, and rules.

Collaborative Partnership

AI copilots and agents integrate deeply into business data and operations, working together to complete tasks. Copilots can orchestrate agents, determining which are needed for specific user requests. Embedded across departmental applications, copilots connect agents into collaborative networks, ensuring they work together seamlessly.

Dynamic Functionality

AI copilots and agents cater to both fully automated tasks and those requiring human involvement. Copilots provide real-time assistance – sourcing information, answering questions, producing insights, and recommending solutions. Agents can collaborate with users for more information or approvals or operate autonomously to solve problems in the background without constant input.

Joule as the Orchestrator of AI Agents

Joule has been the go-to AI copilot for organizations, transforming their businesses using generative AI and SAP Business Suite. Joule Agents leverage its skills, transforming Joule from just a copilot platform to an orchestrator of AI agents working collaboratively.

Joule’s single, integrated interface supports hundreds of essential use cases. It has revolutionized the employee experience, saved companies millions of dollars in annual efficiencies, and laid the foundation for even more significant agent-led outcomes.

Joule serves as the operating system and central hub within the SAP ecosystem for agentic activity. It goes far beyond simply deploying individual AI agents by orchestrating reasoning, planning, and multi-agent coordination to streamline complex business processes. Leveraging the SAP Knowledge Graph and SAP Business Data Cloud, Joule ensures that Joule Agents have immediate access to the necessary data and context for efficient execution.

Conclusion

This lesson highlighted the transformative impact of agentic AI on business operations. Key takeaways include understanding the different types of AI agents and their capabilities, such as boosting productivity, reducing costs, and fostering collaboration. The lesson also highlighted how Joule's AI agents boost productivity, reduce costs, and foster collaboration. Joule's ability to adapt and function independently promises more advanced problem-solving capabilities, driving business efficiency and innovation.

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