LiveAI Agent Tracing: How to Design End-to-End Agent Traces
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AI Agents

How AI Agents Work

A practical explanation of AI agents, tool calling, memory, planning, permissions, and execution.

  1. STEP 01

    What an agent is

    Start with the smallest useful implementation. Define inputs, outputs, dependencies, failure modes, and the boundary between automated actions and human decisions. Test one measurable outcome before expanding the system.

  2. STEP 02

    Model loop

    Start with the smallest useful implementation. Define inputs, outputs, dependencies, failure modes, and the boundary between automated actions and human decisions. Test one measurable outcome before expanding the system.

  3. STEP 03

    Tools

    Start with the smallest useful implementation. Define inputs, outputs, dependencies, failure modes, and the boundary between automated actions and human decisions. Test one measurable outcome before expanding the system.

  4. STEP 04

    Memory

    Start with the smallest useful implementation. Define inputs, outputs, dependencies, failure modes, and the boundary between automated actions and human decisions. Test one measurable outcome before expanding the system.

  5. STEP 05

    Permissions

    Start with the smallest useful implementation. Define inputs, outputs, dependencies, failure modes, and the boundary between automated actions and human decisions. Test one measurable outcome before expanding the system.

  6. STEP 06

    Observability

    Start with the smallest useful implementation. Define inputs, outputs, dependencies, failure modes, and the boundary between automated actions and human decisions. Test one measurable outcome before expanding the system.