AI Agent

An AI agent is a software system that uses an AI model to pursue a goal by deciding on steps, using tools, and acting on the results – within limits set by its designers and users.

AI

Explanation

A typical AI agent combines:

• a model, usually a large language model, for reasoning and language,

• tools, such as access to systems, files, databases, or APIs,

• instructions and rules that define its task, scope, and permissions,

• context or memory about the current task and intermediate results.

The agent works in a loop: it plans a step, executes it with a tool, evaluates the outcome, and decides what to do next. It can hand off to a human when it needs a decision or approval.

Why It Matters

In SAP projects, AI agents can be specialized for tasks such as configuration analysis, test scenario generation, posting validation, or error investigation. Their value depends on the quality of their tools and data and on clear boundaries. For finance, agents should operate with defined permissions, traceable actions, and review by qualified specialists.

Related Terms

Agentic AI · Multi-Agent System · Model Context Protocol · Human-Governed Automation

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