What is AI Agent?
An AI system that plans and takes actions toward a goal over multiple steps.
Formal Definition
An AI agent is a system built around a model that pursues a goal through a loop of observing, reasoning, and acting, often using tools and memory across multiple steps rather than a single reply. An automated trader that reviews the market, decides, and updates a portfolio day after day is acting as an agent.
In Simple Terms
It is an AI that does not just answer one question, but works toward a goal on its own: it looks at the situation, decides what to do, acts, and then repeats, like a tireless assistant.
Example
A model that each day reads the market, chooses trades, records its reasoning, and carries lessons into the next day is behaving as a trading agent.