Agent Loop
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Lesson 1 of 8

The agent loop

Understand goal → action → observation → decision before adding frameworks.

Active reading
GOALCHOOSEACTOBSERVESTOP?

An agent is a loop with boundaries

An agentic system can choose an action, observe the result and decide what to do next. That flexibility is useful, but it also means you need explicit tools, limits and stop conditions.

Five parts
1
Goal

What outcome is the agent trying to reach?

2
Available tools

What actions is it allowed to take?

3
Observation

What result comes back from each action?

4
Decision

Continue, change course, ask for approval or stop?

5
Limit

Maximum steps, cost, scope or time.

Try it
Define a goal, allowed tool and stop condition.
Important

Do not give an agent broader permissions than the task needs.

Actions that can publish, spend money, delete data or message people should use explicit limits and human approval.

Key takeaway

Agent design is not “make AI autonomous.” It is designing a controlled loop with tools, observations and stop rules.

Next lesson

Tools and Actions

Continue to the next lesson.

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