What are AI agents?

Transform how business leaders scale operations

Discover autonomous AI agents that drive proven ROI and transform operations, and learn why agents that are powered by small language models (SLMs) unlock unmatched reliability, customization, and domain-specific results.

What are AI agents?

Traditional AI revolutionized how we work with machines–but AI agents are revolutionizing how machines work with us. Unlike conventional AI tools that passively wait for commands, AI agents are autonomous digital partners that actively drive business outcomes.

The most basic definition of AI agents is that they are advanced software systems designed to perform tasks, make decisions, and solve problems on behalf of users or other systems. They go beyond natural language processing and take concrete actions: they can analyze business environments, create strategies, and independently execute and achieve specific goals. Most importantly, these AI agents don't just execute tasks–they evolve. Through continuous self-learning, they refine their performance over time, becoming more effective and valuable to your business with each interaction.

Now, organizations can use no-code AI agent builders like Arcee Orchestra to create custom agents for complex business tasks. This is possible without any technical expertise in AI or machine learning.

The evolution of automation

Description
Benefits
Best for
Limitations
Example use cases
Traditional automation
Rule-based systems that run in the background based on triggers or schedules
  • Reliable outcomes
  • Low maintenance costs
High-volume tasks or pre-designed standard processes
  • Limited to tasks that have been explicitly programmed

    Will fail if the process changes even slightly
  • Will fail if the process changes even slightly
Automated email scheduling, data backup processes
Robotic Process Automation (RPA)
Software bots that mimic human actions to perform repetitive computer tasks
  • Replaces manual desktop work
  • Handles multiple applications at once
Structured tasks that humans do in a consistent way on computers
  • Can't handle unpredictable tasks
  • Hard to grow and expand the system
Logging into multiple systems to copy-paste data, filling out forms across different websites
AI workflows
Automated processes that use AI at certain steps to make them smarter
  • Capable of complex rules
  • Better pattern recognition
  • Can handle some changes
Tasks that have multiple steps and need AI to make basic decisions along the way
  • Model/data quality dependency
  • Potential for bias amplification
  • Harder to debug
Intelligent Document Processing encompassedof OCR, data extraction, summary and report generation, and completion notifications
AI agents
Self-directed systems that perceive, decide, and act autonomously
  • Independent operation
  • Continuous learning
  • Adjusts to new situations
Tasks that need quick, smart decisions when situations keep changing
  • Unpredictable outcomes leading to variable experiences
Processes which require access to different systems and use of different tools, such as an assistant agent which requires access to calendar, email, customer data, and much more
Agentic AI workflows
Automated workflows powered by autonomous AI agents that combine self-directed decision-making with structured process execution
  • Blends structured automation with AI adaptability
  • Self-optimizing processes
  • Combines reliability with flexibility
Tasks requiring both consistent execution and intelligent adaptation to changing conditions
  • Requires careful balance between autonomy and control
  • Intelligent customer service workflows that adapt responses while following nuanced rules and regulations
  • Supply chain optimization with dynamic rerouting
  • Automated financial risk assessment and trading pipelines

Understanding the difference between generative AI and AI agents

Generative AI
Agentic AI
Primary function
Generates new content (text, images, etc.) based on user prompts
Autonomously manages and executes complex workflows with minimal human intervention
Autonomy
Cannot act or make decisions independently
Can self-direct and automate processes, adapting to dynamic environments
Interaction level
Typically requires human input for each interaction, driven by the user
Highly interactive; collaborates with external tools, knowledge bases, andother AI agents
Task complexity
Excels at creative tasks and data analysis
Well-suited for managing complex tasks with multiple steps and decision points

Four advantages of AI agents

0.1
0.2
0.3
0.4

1.  Boosted Productivity

By assigning tasks to AI agents as part of your digital workforce, your employees can focus on more meaningful and creative work. Most importantly, these AI agents aren't limited to simple tasks; they can handle multiple tasks simultaneously. Studies show that companies using AI have experienced up to a 14% boost in employee productivity. Imagine automating most of the routine and time-consuming tasks—it could completely transform how we think about and approach work.

2.  24/7 availability

AI agents operate independently and can carry out tasks based on their understanding of the environment. In contrast to generative AI, they don't require constant input or instructions from humans. AI agents work autonomously, making decisions on their own. They can also determine when to take action and when to hold back, acting like a tireless guard or employee for your organization. These AI agents ensure that any pressing matters or requests are dealt with efficiently.

3.  Scalability

Unlike traditional automation or RPA, scaling up AI agents is much easier. With traditional automation or RPA, you often face limitations on the backend or front end. For example, if you want to automate processes through traditional automation and have it span multiple systems, it can be challenging to achieve (like being constrained by chains when you implement it).

However, AI agents offer a new possibility. They can handle various tools and tasks across departments, helping you scale seamlessly. In the era of AI agents, they've evolved beyond acting only as the "brain" of generative AI. They now have "eyes, ears, and hands"– they can perceive their environment, understand which tools to use, and even implement integrations on their own.

4.  Enhanced ROI

AI agents are becoming a critical driver for businesses that aim to maximize ROI from AI technology. While McKinsey estimates that generative AI  already saves individuals an estimated 11 hours per week, agentic AI takes it to the next level, bringing an additional time savings of 25-50%. Let’s break it down: for a 100-person team, this translates to thousands of hours reclaimed, enabling employees to focus on high-value, strategic tasks. In the era of AI agents, success isn’t just about cutting costs or optimizing resources for better ROI—it’s about transforming the way you operate to achieve results that are exponentially better.

Benefits of Small Language Models (SLMs) in creating custom AI agents

1

Domain-specific excellence

While LLMs offer broad capabilities, SLMs excel when it comes to specific tasks and domains. By training on targeted datasets tailored to a particular use case, SLMs deliver exceptional performance in specialized areas. This focus on domain-specific expertise allows SLM-powered AI agents to prioritize the most relevant information, which improves accuracy and problem-solving abilities. For example, with specialized small language models, you can create highly customized agents tailored specifically for tasks like coding or managing visual content.

2

Flexibility and control

SLMs provide businesses with greater flexibility and control over their AI agents. Unlike LLMs, which often require reliance on third-party providers, SLM-powered AI agents can be deployed in any environment (like your VPC). This flexibility ensures that companies can maintain full control over their data security and compliance, addressing any concerns related to sensitive information or regulatory requirements. Moreover, by owning the underlying model, businesses have the freedom to customize their AI agents to align with their specific goals and objectives.

3

Competitive differentiation

In a crowded market where many AI agent frameworks rely on similar LLMs for AI agent development, SLMs offer a unique opportunity for businesses to differentiate themselves. By developing AI agents powered by SLMs, enterprises can create tailored and highly specialized agents that cater to their specific industry or niche. This level of customization empowers businesses to stand out from the competition and gain a definitive edge in the evolving AI agent landscape.

At Arcee AI, we are at the forefront of SLM innovation, setting industry benchmarks with our advanced capabilities. Our Arcee Orchestra platform for creating AI agents is powered by our most advanced Small Language Models, making it the optimal solution for creating cutting-edge AI agents.

AI agent examples

AI agents examples in finance

  • Automating routine tasks like invoice processing and compliance reporting.
  • Generating real-time investment insights by collecting and analyzing data from 
multiple channels.
  • Task-oriented agents excel at streamlining complex financial processes like loan processing, compliance reporting, and risk management.

AI agents examples in healthcare

  • Providing nuanced insights during diagnostics.
  • Automating scheduling, billing, and the process of updating medical records.
  • Improving the accuracy of treatment recommendations

AI agents examples in manufacturing

  • Monitoring inventory levels.
  • Predicting maintenance needs.
  • Automating the process of defect detection and reporting.

AI agents examples in human resources management

  • Screening and shortlisting resumes.
  • Analyzing candidate data to identify top talent.
  • Automating the onboarding process by automating paperwork, training schedules, and initial orientation tasks.

AI agents examples in customer success

  • Chatbots for immediate assistance.
  • AI-powered customer lead score assignments.
  • Predictive analytics systems.

Agentic AI chatbots for Enterprise

For organizations seeking to upgrade their customer assistance, agentic AI chatbots offer a transformative solution beyond traditional automated responses. Unlike standard chatbots, these intelligent agents can:

Learn from every interaction:

Continuously improve responses based on previous conversations.

Understand context:

Recognize nuanced customer intents.

Personalize experiences:

Adapt communication style to individual user needs.

Proactively solve problems:

Anticipate customer requirements before they've been explicitly stated.

Agentic and non-agentic AI chatbots:

Non-Agentic AI Chatbots
Agentic AI Chatbots
Decision-making
  • Require continuous user input
  • Can only reach short-term goals
  • Cannot plan ahead
Takes user input and determines if more information is needed, what tools to call, and decides the best actions to take.
Learning ability
  • No memory retention
  • Cannot learn from mistakes
  • Cannot improve from feedback
  • Learn from past interactions
  • Self-correct and update plans
Growth capability
  • Static knowledge base
  • Repeat the same patterns
  • No performance improvement
  • Get smarter with use
  • Remembers user preferences
  • Refines responses over time
Personalization
  • Same response to similar queries
  • Poor performance with unique questions
  • No personalized context
  • Provide personalized experiences
  • Adapt responses to user context
  • Handle unique user situations

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Frequently
Asked Questions

What are AI Agents?

AI agents are advanced software systems designed to perform tasks, make decisions, and solve problems on behalf of users or other systems. They go beyond the natural language processing capabilities of generative AI by taking concrete action such as: analysis of business environments, creation of strategies, and independent execution of specific tasks. 

How are AI agents different from traditional automation and RPA?

The key difference between AI agents and other automation methods lies in their level of autonomy and adaptability. Traditional automation systems are rule-based, operating within predefined parameters and executing tasks in a predetermined manner. In contrast, AI agents are self-directed systems that can perceive their environment, make autonomous decisions, and adapt to changing situations. 

What are the key advantages of using AI agents in business?

The key benefits of AI agents include increased productivity, 24/7 availability, and scalability. AI agents handle routine tasks autonomously, freeing up employees for more creative and strategic work, and they can scale seamlessly across systems and departments. Additionally, AI agents drive enhanced ROI by optimizing workflows and improving decision-making capabilities.

How do small language models (SLMs) enhance AI agents?

SLMs provide AI agents with domain-specific expertise, allowing businesses to create highly customized agents for specific tasks, such as coding or handling visual content. They also offer greater flexibility and control, enabling companies to deploy AI agents in secure environments while ensuring data privacy and compliance. Most importantly, SLM-powered AI agents can differentiate businesses by providing specialized solutions tailored to their unique needs.

Are AI agents right for my business?

They could be, but before investing in AI agents, be sure to thoroughly consider the legal and logistical aspects. Ensure that you have the necessary budget and resources to implement them properly while fully complying with data privacy and other regulations. Arcee Orchestra, powered by SLMs, can offer you safeguards when it comes to monitoring and compliance.