Glossary

What is an LLM agent?

Last reviewed 7 October 2026

Definition

An LLM agent is an agent whose decisions are made by a large language model, which reads a goal, reasons about it and chooses actions such as tool calls in a repeated loop. The term has no single standard definition. Researchers use it for any agent built on a language model, while many developers use it as a plain synonym for AI agent.

Also called: LLM agents, LLM-based agent, language model agent, LLM-powered agent.

Why it matters

Why LLM agent matters

The phrase is useful because it names the part that does the deciding. Older agents used rules, search algorithms or reinforcement learning policies. An LLM agent hands that job to a language model, which can read untidy inputs and write its own plans, but which can also be confidently wrong. Knowing that the decision-maker is an LLM tells you which failures to plan for: invented tool arguments, drift from the goal and sensitivity to wording.

Definitions vary, so check the source. The survey by Xi and colleagues (2023) describes LLM-based agents as artificial entities that sense their environment, make decisions and take actions, built around three parts it calls brain, perception and action. Anthropic does not treat “LLM agent” as a separate category; it describes agents as systems where an LLM directs its own process and tool use. On this site, LLM agent and AI agent mean the same thing unless a page says otherwise.

Mechanism

How it works

The best known pattern is ReAct, from a 2022 paper by Yao and colleagues. The model generates reasoning traces and task-specific actions in an interleaved manner: it writes a short thought, takes an action, reads what the action returned, and repeats. That lets the model adjust its plan when a tool returns something unexpected, rather than committing to a plan it wrote before seeing any data.

Modern model APIs build this loop in. The developer describes tools with a name, a description and a JSON schema; the model returns a structured tool call; the application runs it and sends back the result. The agent framework around the model handles memory, retries, step limits and logging.

Because the LLM is the decision-maker, the prompt and the tool descriptions are part of the program. Change a tool description and the agent may call it more or less often. Teams that run LLM agents in production treat prompts as versioned code and test them against a fixed set of tasks before each change.

Worked example

Example: answering a question about a contract

A legal operations user asks: “Does our agreement with this vendor allow termination for convenience?” The LLM agent reasons that it needs the contract first and calls a document search tool with the vendor name. The search returns the master agreement and two amendments.

The agent reads the master agreement and finds a termination clause, then notices that the second amendment changes the notice period. It calls the search tool again for that amendment, reads the relevant section, and answers with both clauses quoted and cited. When it cannot find a clause, it says so instead of inferring one from typical contracts.

The behaviour that matters is the second search. A single retrieval would have missed the amendment. The model decided to look again because of what it read.

Where Swfte stands

How Swfte relates to it

Built in the product

In Swfte Studio every agent is an LLM agent in this sense: its decisions come from a language model you choose. Because Studio reaches models through Swfte Connect, you can run different agents on different providers and change an agent’s model without rewriting the agent. Connect adds routing and fallback, budgets and an audit event stream for those model calls.

Studio records traces and token cost per step, which is how you see why an agent chose a tool. Golden sets and regression runs for agents are in development, not shipped, so for now keep your own fixed task set and run it before you change a prompt or a model.

Keep reading
  • AI agent

    An AI agent is a software program that uses an AI model to decide what to do next and then acts through tools to reach a goal it was given.

  • Function calling

    Function calling is a feature of language model APIs that lets a model return a structured request to run a function you defined, with arguments that match its schema, instead of only replying in text.

  • Agentic AI

    Agentic AI is a style of AI system that works toward a goal with limited supervision, choosing its own next steps and calling tools to act on other systems.

  • Agentic RAG

    Agentic RAG is retrieval-augmented generation in which an AI agent controls the retrieval step, deciding what to search for, which sources to use and whether to search again before it answers.

Common questions

Is an LLM agent different from an AI agent?
In most current writing, no. AI agent is the wider term and could include agents driven by rules or reinforcement learning. LLM agent says specifically that a large language model makes the decisions. Since nearly all new agents use LLMs, people use the two interchangeably. Ask which model drives the agent if that matters to you.
What is ReAct in LLM agents?
ReAct is a prompting pattern from a 2022 paper by Yao and colleagues. The model alternates between a reasoning step and an action, then reads the result before reasoning again. It is a simple, widely copied baseline for tool-using agents, and many agent frameworks implement a version of it under the hood.
Why do LLM agents make up tool arguments?
The model predicts plausible text, including plausible parameters. If a required value is missing from the context, it may fill one in instead of asking. Strict schemas, clear tool descriptions and validating arguments in your own code before execution reduce this. For actions with side effects, add an approval step so a person sees the arguments first.
Can a small model run an LLM agent?
Yes, for narrow jobs. Routing, classification and simple lookups often work on small models, while open-ended planning tends to need a stronger one. Many teams split the work: a small model for routine steps and a larger one for the hard decision or the final answer. Test both on your own tasks before you choose.
Evidence

Sources

Definitions on this page were read on the sources below on 7 October 2026. Where sources define the term differently, the page says so. The full glossary lists more terms.

  1. Xi and colleagues, survey of large language model based agents (arXiv 2309.07864) (read 2026-10-07)
  2. Yao and colleagues, ReAct paper on interleaving reasoning and acting (arXiv 2210.03629) (read 2026-10-07)
  3. Anthropic engineering article on building effective agents, workflows versus agents (read 2026-10-07)

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