AI Agent Development: Guide to Building AI Agents

james-42 Sep 21, 2026 | 2 Views
  • Artificial Intelligence

AI Agent Development: How Businesses Can Build, Evaluate and Secure Intelligent Workflows

Businesses are rapidly adopting artificial intelligence to automate repetitive work, improve decision-making, and create more responsive customer experiences. Among the newer applications of AI, AI agents are becoming increasingly important because they can interpret objectives, reason through tasks, use connected tools, and take actions with varying levels of autonomy.

Organizations considering AI agent development company services should first understand what AI agents can realistically accomplish, where they can add value, and what technical and security considerations should be addressed before deployment.

A successful AI-agent project is not simply about connecting a large language model to an application. It requires clearly defined objectives, appropriate tools and data access, testing, monitoring, security controls, and human oversight where the consequences of an incorrect action could be significant.

 

What Is an AI Agent?

An AI agent is a software application that uses AI to pursue a defined goal by processing information, reasoning about available options, using tools, and taking actions. Modern agent architectures can combine a model with orchestration, memory or state, external tools, data sources, and application logic.

Unlike a basic chatbot that may primarily generate responses to user prompts, an AI agent can participate in a multi-step workflow.

For example, a customer-service agent could:

  1. Receive a customer request.
  2. Identify the customer’s account.
  3. Retrieve relevant information from a CRM.
  4. Check an order or service record.
  5. Determine what action is appropriate.
  6. Draft or send a response.
  7. Record the interaction in the relevant system.

Tool use is an important part of this process. Function calling allows an AI model to request a defined external function, after which the application executes that function and returns the result to the model.

This combination of reasoning, context, tools, and actions is what makes agentic systems different from simple conversational interfaces.

 

Why Businesses Are Exploring AI Agents

Organizations are exploring AI agents for workflows where conventional automation may be too rigid and where tasks require interpreting information, making intermediate decisions, or interacting with several systems.

Potential benefits include:

  • Workflow automation: Agents can assist with repetitive and multi-step processes.
  • Faster information processing: Agents can retrieve, organize, and summarize information from connected sources.
  • Improved responsiveness: Agents can support customer and employee workflows outside traditional working hours.
  • Personalized interactions: Agents can use relevant context to tailor responses and actions.
  • Reduced manual workload: Employees can spend less time on repetitive administrative tasks.
  • Process scalability: Well-designed systems can support additional workloads without requiring every step to be performed manually.

However, these benefits are not automatic. An agent’s usefulness depends on the quality of its underlying model, data, tools, workflow design, access controls, evaluation, and monitoring.

Businesses should therefore measure outcomes against clearly defined objectives rather than assuming that adding an AI agent will automatically improve productivity.

 

Key Components of AI Agent Development

A reliable AI agent usually combines several technical components.

1. AI Model

The model provides the reasoning and language capabilities used by the agent. Model selection should consider factors such as accuracy, latency, context requirements, cost, privacy requirements, and the complexity of the intended tasks.

The most capable model is not necessarily the best choice for every workflow. A simpler or more specialized model may be sufficient for a narrowly defined task.

2. Orchestration

The orchestration layer controls how the agent processes requests, maintains state, selects tools, and moves between different stages of a workflow.

For complex applications, orchestration can determine:

  • Which tool should be used
  • What information should be retrieved
  • Which step should happen next
  • When the task should stop
  • When a human should review the result

3. Natural Language Understanding

AI agents need to interpret instructions expressed in natural language. Modern language models can interpret questions, commands, and contextual information, allowing agents to interact with users in more flexible ways.

However, natural-language understanding does not guarantee correct reasoning. Agent outputs should therefore be evaluated against the requirements of the specific business workflow.

4. Tool and API Integration

Tools allow an agent to interact with external systems.

Depending on the application, these may include:

  • CRM platforms
  • Databases
  • Enterprise software
  • Payment systems
  • Search services
  • Communication platforms
  • Scheduling systems
  • Internal APIs
  • Knowledge bases

Tool permissions should be carefully controlled. An agent should only have the access required for its assigned responsibilities.

NIST has highlighted the importance of understanding the risks that arise when AI agents are given access to data, tools, and applications, including the need for appropriate identification and authorization controls.

5. Memory and Context Management

Memory allows an agent to retain relevant information about an interaction or workflow.

Depending on the application, this may include:

  • Current conversation state
  • Previous actions
  • User preferences
  • Relevant business information
  • Retrieved knowledge
  • Task history

Memory should be designed carefully because retaining unnecessary or sensitive information can create privacy and security concerns.

6. Grounding and Knowledge Retrieval

Agents often need access to reliable information rather than relying entirely on the model’s internal knowledge.

Grounding can connect an agent to approved knowledge sources, databases, documents, or retrieval systems. This can help an agent work with organization-specific information and provide responses based on available source material.

7. Multi-Agent Collaboration

Some complex applications can use multiple specialized agents.

For example:

  • One agent can gather information.
  • Another can analyze the information.
  • A third can prepare a report.
  • A human reviewer can approve the final output.

Multi-agent architectures can be useful for complex workflows, but they also introduce additional coordination, monitoring, and security considerations.

8. Monitoring and Observability

Businesses need visibility into how an agent operates.

Monitoring can include:

  • Tool usage
  • Errors
  • Task completion rates
  • Response quality
  • Latency
  • Cost
  • Failed workflows
  • Human interventions
  • Security events

Logs and evaluation data can help development teams identify recurring problems and improve the system over time.

 

Where AI Agents Can Be Used

AI agents can support a wide range of industries and business functions.

Healthcare

Potential applications include appointment scheduling, administrative workflows, patient communication, and information retrieval.

Healthcare implementations require particular attention to privacy, authorization, safety, and applicable regulatory requirements.

Ecommerce

Agents can assist customers with product discovery, order information, frequently asked questions, and support workflows.

Actions that affect purchases, refunds, or customer accounts should have appropriate authorization and safeguards.

Finance

Financial organizations may use AI agents for document processing, research assistance, customer support, internal knowledge retrieval, and administrative workflows.

Because financial decisions can have significant consequences, human review and strong controls may be necessary for higher-risk applications.

Real Estate

Agents can assist with lead qualification, appointment scheduling, customer inquiries, and organizing property information.

Travel and Hospitality

AI agents can support itinerary planning, booking assistance, customer service, and information retrieval.

Actions involving reservations, payments, or cancellations should be subject to appropriate permissions and confirmation requirements.

Software and IT

Agents can assist with troubleshooting, documentation, ticket management, code-related workflows, and internal technical support.

Where agents can modify production systems or execute code, stronger access controls and testing are particularly important.

 

AI Agent Development Process

Building an effective AI agent requires more than integrating a language model into an application.

Step 1: Define the Business Problem

Start with the business outcome rather than the technology.

Define:

  • What problem needs to be solved?
  • Who will use the system?
  • What tasks should the agent perform?
  • What decisions can it make?
  • What actions should require human approval?
  • How will success be measured?

A narrowly defined use case is often easier to evaluate and control than a system given a broad, undefined objective.

Step 2: Map the Workflow

Document the existing process before automating it.

Identify:

  • Inputs
  • Decisions
  • Data sources
  • Applications
  • Human approvals
  • Exceptions
  • Outputs
  • Failure points

This helps determine whether an AI agent is actually appropriate or whether conventional automation may be simpler and more predictable.

Step 3: Select the Architecture and Technology

Developers can then determine the appropriate combination of:

  • AI models
  • Orchestration
  • Databases
  • Retrieval systems
  • APIs
  • Tools
  • Memory
  • Cloud infrastructure
  • Security controls

Architecture decisions should reflect the sensitivity and risk of the workflow rather than only the technical capabilities of the available models.

Step 4: Build the Agent and Its Tools

The development stage involves implementing the agent’s instructions, reasoning workflow, tool integrations, business rules, data access, and application interfaces.

Tool definitions should be precise, and permissions should follow the principle of giving the agent only the access it needs.

Step 5: Test and Evaluate

Testing should cover more than whether the agent produces a convincing response.

Teams should evaluate:

  • Task accuracy
  • Tool selection
  • Incorrect actions
  • Failure recovery
  • Security behavior
  • Performance
  • Latency
  • Cost
  • User experience
  • Human escalation

NIST’s current evaluation work emphasizes structured testing, red teaming, and user testing as components of broader AI evaluation.

Because agent behavior can vary between attempts, repeated testing can also be important for workflows exposed to security or reliability risks. NIST research on agent evaluations has highlighted the importance of evaluating agent behavior across multiple attempts.

Step 6: Deploy With Appropriate Controls

Deployment should include monitoring, access controls, logging, incident-response procedures, and defined human responsibilities.

Higher-risk actions may require explicit human approval before execution.

NIST’s AI Risk Management Framework emphasizes trustworthy AI characteristics and risk management throughout design, development, deployment, use, and evaluation.

Step 7: Continuously Improve

An AI agent should not be considered finished when it is deployed.

Organizations should monitor performance, collect feedback, investigate failures, update knowledge sources, review permissions, and repeat evaluations as the underlying models, data, tools, and business requirements change.

 

Security and Risk Considerations for AI Agents

The ability of an agent to take actions creates risks that may not exist in the same form in a simple chatbot.

Excessive Permissions

An agent with unnecessary access can create a larger potential impact if something goes wrong.

Use role-based access, limited permissions, authentication, and authorization appropriate to the task.

Prompt Injection and Agent Hijacking

An agent may encounter untrusted content containing instructions designed to influence its behavior.

NIST research has demonstrated that indirect prompt injection can cause an agent to perform unintended actions when malicious instructions are embedded in information the agent processes.

Agent workflows should therefore distinguish trusted instructions from untrusted external content and include appropriate safeguards.

Tool Misuse

A model may select an inappropriate tool or provide incorrect parameters.

Critical tools should have validation, permission checks, input constraints, and, where appropriate, human confirmation.

Data and Privacy Risks

Agents may process sensitive business or personal information. Organizations should determine what data the system can access, how long information is retained, and which parties or systems can receive it.

Human Oversight

Not every action should be fully autonomous.

Human review can be appropriate for actions involving significant financial, legal, safety, security, employment, or customer-impacting consequences.

Organizations should define in advance which actions an agent can perform independently and which require human approval. NIST guidance emphasizes clearly defined human roles and responsibilities for AI system oversight.

Supply-Chain and Integration Risks

Agents may depend on models, external APIs, plugins, tools, frameworks, and other software components.

Organizations should evaluate the security and reliability of those dependencies as part of the overall system rather than assessing only the underlying AI model.

OWASP’s Agentic AI security guidance identifies risks associated with agent goals, tool use, identity and privilege, and interconnected agent ecosystems.

 

How to Measure an AI Agent’s Success

Before deployment, businesses should define measurable outcomes.

Depending on the use case, useful metrics may include:

  • Task completion rate
  • Accuracy
  • Escalation rate
  • Human correction rate
  • Average processing time
  • Cost per task
  • Customer satisfaction
  • Error rate
  • Tool-call success rate
  • Security incident rate

For example, an IT-support agent should not be judged only by how natural its responses sound. A more meaningful assessment could include whether it correctly identifies issues, retrieves appropriate information, resolves eligible tickets, escalates uncertain cases, and avoids unauthorized actions.

Evaluation should therefore reflect the actual business objective.

 

How to Choose an AI Agent Development Partner

Businesses considering external development support should evaluate a provider based on the requirements of the specific project rather than selecting a company solely because of marketing claims.

Important questions include:

  • Does the team understand the intended business workflow?
  • Can it work with the required AI models and APIs?
  • Does it have experience with enterprise integrations?
  • How will data privacy and security be addressed?
  • How will agent permissions be controlled?
  • What evaluation methodology will be used?
  • How will failures and incorrect actions be handled?
  • What monitoring will be available after deployment?
  • Who will maintain the system?
  • What are the expected development, infrastructure, and ongoing operating costs?

Businesses should also ask for clarity about intellectual property, data ownership, documentation, support arrangements, service-level expectations, and exit or migration options.

For organizations evaluating external development support, 75way Technologies is one example of a company operating in the AI application development space. As with any technology provider, businesses should independently evaluate its capabilities, experience, security practices, commercial terms, and suitability for their particular requirements.

The objective should be to select a development partner based on verifiable capabilities and project fit rather than promotional claims alone.

 

When an AI Agent May Not Be the Right Solution

AI agents are not automatically the best choice for every automation problem.

A conventional software workflow may be preferable when:

  • The process follows fixed and predictable rules.
  • Every decision can be expressed deterministically.
  • The task requires extremely low error tolerance.
  • The cost of an incorrect action is very high.
  • There is little need for natural-language interpretation.
  • A simpler automation tool can accomplish the same objective.

The right question is therefore not simply “Can an AI agent perform this task?” but “Does an AI agent provide enough value to justify its complexity, cost, and risk?”

 

Future of AI Agent Development

AI agents are developing toward systems that can combine reasoning, memory, tools, multimodal inputs, and coordination across multiple agents and applications. Industry and standards organizations are also increasingly focusing on secure agent identity, authorization, evaluation, interoperability, and governance.

Future systems may handle longer workflows and more complex interactions with enterprise software. However, greater autonomy also makes evaluation, security, access control, and human oversight increasingly important.

The evolution of AI agents is therefore likely to involve not only more capable models, but also better engineering practices for controlling how those models interact with real-world systems.

 

Conclusion

AI agents are changing how organizations approach automation and intelligent software development. They can combine AI models with tools, data, memory, and application workflows to perform tasks that go beyond simple conversational interactions.

Their potential applications span customer support, ecommerce, healthcare administration, finance, IT, real estate, travel, and many other business functions.

However, successful AI-agent development requires more than selecting a capable model. Organizations need clearly defined use cases, appropriate architecture, controlled access to data and tools, rigorous evaluation, security measures, monitoring, and human oversight where appropriate.

Businesses considering an AI agent development company should therefore evaluate providers based on technical capability, security practices, development methodology, measurable outcomes, and long-term support.

As agentic AI continues to evolve, organizations that approach it as both a technology and a risk-management challenge can make more informed decisions about where autonomous systems can genuinely add value.

 

FAQs

What is an AI agent?

An AI agent is a software application that uses AI to pursue a goal by processing information, reasoning about tasks, using available tools, and taking actions.

How are AI agents different from chatbots?

A traditional chatbot may primarily generate responses to user questions. An AI agent can go further by planning or carrying out multi-step tasks, interacting with external tools, and taking actions within defined permissions.

What technologies are used to build AI agents?

Depending on the application, an AI agent may use language models, orchestration frameworks, APIs, databases, retrieval systems, memory or state management, cloud infrastructure, monitoring tools, and security controls.

Are AI agents fully autonomous?

Not necessarily. The level of autonomy depends on how the system is designed. Organizations can require human approval for selected actions and limit the agent’s access to tools and data.

What are the main risks of AI agents?

Potential risks include incorrect actions, excessive permissions, prompt injection, data exposure, tool misuse, unreliable outputs, integration failures, and security vulnerabilities. Agent security therefore needs to be considered alongside the business benefits.

How should an AI agent be evaluated?

Evaluation should reflect the intended business task. Depending on the use case, this can include accuracy, task completion, tool-use reliability, error rates, cost, latency, security testing, human intervention, and user outcomes.

Does every business need an AI agent?

No. Some workflows are better handled by conventional automation or deterministic software. Businesses should compare the expected benefits of an agent against its complexity, operating costs, and risks.

What should businesses consider before deploying an AI agent?

Businesses should define the use case, identify the data and tools the agent needs, establish access controls, determine human-approval requirements, test the system under realistic conditions, monitor its performance, and establish procedures for handling failures and security incidents.

 

Disclaimer

AI technologies and best practices evolve rapidly. Organizations should verify technical, regulatory, security, privacy, and compliance requirements applicable to their specific industry and jurisdiction before deploying an AI-agent system.

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