Technology

Do you still need ChatGPT? AI agents are everywhere

Reading time: 7 min | Oct 27, 2024

The AI industry has reached a point of rapid evolution, with companies like Microsoft, SAP, and Salesforce unveiling ambitious new AI solutions they’re calling “AI agents.” These announcements have sparked excitement but also confusion—as enterprises seek to understand exactly what these AI solutions offer. For business leaders monitoring AI trends, distinguishing between “AI agents” and familiar generative AI assistants like ChatGPT or Microsoft Copilot has become increasingly challenging. Each solution promises to automate and enhance business processes, but they’re not all the same. The key to effectively leveraging these technologies is understanding the distinctions, both practical and technical, that set agents and assistants apart. With this article, the aim is to break down the essentials, addressing what each tool can do and where the true transformative potential lies.

What are generative AI assistants?

Generative AI assistants, such as ChatGPT, Microsoft Copilot, and Claude, are tools designed to help users by generating responses through natural language interactions. Unlike traditional conversational AI, which uses pre-set rules for structured exchanges, generative AI assistants utilize large language models (LLMs) to respond dynamically to each prompt. These assistants are highly responsive and adaptable, producing context-aware answers for specific user inquiries, summarizing reports, or even generating content.

However, generative assistants remain reactive tools that depend on user input for each interaction. They lack the autonomy needed to perform complex, multi-step workflows independently or to make ongoing decisions without prompts. With limited memory that doesn’t persist across sessions, generative AI assistants are best suited to handle single-response tasks, offering immediate, language-based support without the capability for proactive decision-making.

The core of AI agents

An AI agent takes AI capabilities further by operating as an autonomous, goal-oriented system. Agents are built to perform tasks independently, and they incorporate several advanced components that distinguish them from generative AI assistants. These building blocks enable agents to plan, adapt, and execute workflows without constant user input. Key elements include:

  • Planning: An AI agent doesn’t simply respond to a single prompt; it devises a sequence of steps to achieve a specific objective, such as processing a customer request or executing a series of tasks in a workflow. Planning allows an agent to reason through the necessary actions, resources, and order required to complete its assigned goals.
  • Tools: Agents use external tools and resources to dynamically gather information and make decisions. This tool integration capability allows agents to interact with external data sources or applications beyond their own model, which is essential in a business context. For instance, an agent might access a database or perform calculations through APIs, dynamically selecting the best tools for the job based on cost, response time, and relevance. These external functionalities make agents powerful connectors, enabling them to pull in information or take actions across platforms, such as linking CRM and ERP systems.
  • Perception: Perception enables agents to monitor changes in their environment, effectively acting as sensors that recognize when specific triggers occur. For example, an AI agent might track system data to detect and respond to customer support requests or monitor logistics updates, allowing for real-time responsiveness.
  • Memory: Memory is crucial for AI agents handling ongoing tasks, providing continuity over extended interactions. Memory enables agents to retain details across sessions or even between complex workflows, so they can build on past interactions, track progress, or deliver a consistent experience over time.some text
    • Short-term memory: Useful for tracking specific details within a limited context, such as a single troubleshooting session.
    • Long-term Memory: Helps an agent support recurring projects or retain customer preferences. In a customer service setting, this enables an agent to remember past interactions, ensuring seamless continuity.
    • Episodic and Semantic Memory: These structures mimic human memory, with episodic memory for storing detailed event-specific information and semantic memory for general knowledge. For example, an agent might retain interaction logs as episodic memory and use semantic memory for company policies, creating a digital “colleague” that can adapt and learn over time.
High-level architecture of an AI agent

What is the difference between them? Are they not all the same?

For those new to the concept, it can seem like generative AI assistants and AI agents serve similar functions. However, the practical and technical distinctions between them are significant, particularly when it comes to autonomy, tool integration, behavior, and complexity. Here’s a breakdown:

Scope of autonomy

Generative AI assistants respond solely within the bounds of a user’s prompts. For instance, Microsoft Copilot can analyze Excel data or summarize email threads based on a prompt but lacks the autonomy to initiate any of these tasks independently. An assistant waits for user input and does not persist in activities beyond that interaction.

AI agents, however, can perform tasks without constant input, operating autonomously toward set goals. They may be programmed to monitor data continuously, raise alerts, or even adapt based on new information. This autonomy allows them to execute complex workflows or react to specific conditions without waiting for direct user intervention.

Tool usage and integration

Generative AI assistants integrate with a limited range of tools and data sources, typically within a specific context like being part of the Microsoft Office tools or as an everyday companion like ChatGPT or Claude that has limited tool capabilities (for example being able to search the web). They respond to prompts with the information provided or trained on, but they cannot autonomously reach out to external systems to pull data or take actions unless explicitly requested.

In contrast, AI agents are designed for dynamic integration and with a specific goal in mind. An AI agent tasked with customer service, for example, might query CRM data, email customers, and update logs as part of a single workflow. The ability to activate and interact with various tools on-demand makes agents especially valuable in complex enterprise settings.

Proactive vs. reactive behavior

Generative assistants operate reactively, responding when prompted. For example, ChatGPT will draft a report if asked but lacks the awareness to follow up or proactively check on updates to that report.

AI agents are proactive, and goal-oriented, continually scanning for updates or reacting to triggers. In a finance department, for instance, an agent might watch for unusual spending patterns or workflow bottlenecks, flagging issues without a prompt. This proactive stance is highly beneficial for real-time monitoring and continuous process improvement.

Task complexity and multistep workflows

While generative assistants perform well with single-step or short workflows, they are less equipped to manage complex tasks independently. Tasks like summarizing a document or recommending a course of action fall within their wheelhouse, but extended workflows remain out of reach.

AI agents thrive in multistep workflows. An HR agent, for example, could autonomously manage the hiring process, from initial candidate screening to scheduling interviews, handling various steps independently. Their ability to coordinate across platforms and manage multi-step processes makes them suitable for complex business operations.

Why copilots and assistants aren’t considered agents

Generative AI assistants and copilots, despite their advanced capabilities, aren’t true agents. They are designed to provide responsive, on-demand support based on user prompts rather than independently managing workflows. These tools excel at assisting with specific tasks within a reactive framework, requiring user input to function.

In contrast, AI agents operate autonomously, handling complex, multistep processes and adapting to dynamic environments without continuous guidance. While copilots and assistants serve as highly effective task helpers, AI agents function as proactive digital collaborators, moving projects forward independently and achieving goals with minimal or no human intervention.

Solution providers claiming “Agentic” capabilities? What’s really going on?

A growing trend is for some generative AI assistants to be marketed as “agentic” solutions, suggesting an elevated degree of autonomy or capability. In AI and academic literature, “agentic patterns” refer to design principles that give AI systems a semblance of independence and adaptability. For example, an agentic design may include the following patterns:

  • Reflection: An agent reviews its actions to assess quality or accuracy, iteratively refining its approach.
  • Tool Use: The ability to access and operate external tools, from simple applications to complex APIs, as needed.
  • Planning: The capacity to devise and execute multistep plans for tasks like completing a customer request or running an analysis.

While some generative assistants like ChatGPT demonstrate limited “agentic” patterns—such as using tools within a single conversation or adjusting responses based on context—they do not possess the independence or multi-session continuity that defines true AI agents. They remain primarily reactive, relying on user prompts for each action, and lack the long-running, asynchronous task management needed for complex workflows. Generative assistants with these limited “agentic” features may exhibit some adaptive decision-making within interactions, but they don’t fit the criteria of full AI agents.

Are AI agents fully autonomous? The question of job replacement

The word “autonomous” is often associated with AI agents, sparking concerns about job displacement. However, the level of autonomy in AI agents is variable and generally limited by design to ensure human oversight where necessary. Rather than replacing human roles entirely, agents can be configured to perform basic, repetitive tasks independently, while complex decision-making is often kept under human supervision.

AI system designers are able to set varying levels of autonomy based on the use case and associated risks. An agent may operate in a low-autonomy setting, where it performs routine actions but requires human approval for critical steps. In more advanced applications, agents may execute end-to-end workflows with minimal intervention, although key actions can still prompt a “human-in-the-loop” check to confirm accuracy. This balance of autonomy allows enterprises to benefit from AI agents without sacrificing control, particularly in high-stakes fields like finance and healthcare.

Rather than a job replacement, AI agents represent a means of amplifying human capabilities by handling repetitive or time-consuming tasks. By automating certain actions, agents free up employees to focus on higher-value responsibilities, making their roles more impactful and aligned with strategic goals.

Possible workflow transformation through AI agents

Conclusion

Generative AI assistants and AI agents both play essential roles in today’s AI landscape, but their capabilities differ in significant ways. While generative assistants are well-suited for responsive, language-based interactions, AI agents bring a new level of autonomy and adaptability, enabling them to manage complex workflows across systems. Understanding these distinctions is critical for businesses aiming to implement AI solutions that align with their operational goals. With the right approach, these tools can complement one another, driving efficiency and enhancing overall workplace & business productivity in an increasingly AI-driven world.

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