Beginner

    How to Build an AI Agent with LLMs

    A low-barrier introduction to the building blocks of LLM-powered agents.

    Jay Burgess4 min read

    Building an AI agent with LLMs starts with a goal and a controlled environment. The LLM is the reasoning component, but it is not the whole system. A practical agent also needs tools, memory, routing logic, and a way to explain the steps it took. Without those pieces, the model can talk about work but cannot reliably do work.

    The first building block is a clear task boundary. Instead of asking an agent to "handle finance," define a narrow workflow such as "extract invoice fields, compare them against purchase orders, and route exceptions to a human." Narrow goals make tool selection easier, testing easier, and failure recovery more realistic.

    The second building block is tool design. Agents need structured access to APIs, databases, search systems, calculators, code execution, or workflow actions. Each tool should do one thing and return a predictable result. If a tool is too broad, the agent gains too much authority. If a tool returns messy output, the agent spends its reasoning budget recovering from avoidable ambiguity.

    The third building block is memory. Short-term memory keeps track of the current run. Long-term memory stores durable knowledge, preferences, or prior outcomes. Beginners should be cautious with long-term memory because it can make systems harder to explain. In many cases, retrieval from approved documents is safer than an agent remembering everything. Good agents are modular, inspectable, and constrained enough that a team can improve them over time.

    The LLM is the CPU, not the system
    An LLM alone is not an agent any more than a CPU alone is a computer. The system around it — memory, tools, retrieval, handoff paths, and evaluation — determines whether it's reliable. Invest in that infrastructure before investing in model quality.

    What this means in practice

    The practical implementation question is not whether the idea is interesting. It is how a team turns it into a workflow that can be inspected, repeated, and improved. For this topic, the operating focus is direct: Build around modular components: a reasoning model, narrow tools, short-term state, retrieval, and a clear handoff path.

    That means the engineering work starts before the first model call. The team must decide what the agent is allowed to know, what it is allowed to do, what evidence it must produce, and which actions require a human decision. This is the difference between an impressive demo and a system that can survive real users, changing inputs, and production constraints.

    A credible implementation also includes a feedback path. Every agent run should leave behind enough context for another engineer to answer four questions: what goal was attempted, what context was used, which tools were called, and why the system believed the task was complete. If those questions cannot be answered from logs, traces, or structured outputs, the agent is still operating as a black box.

    Reference Diagram

    A simple architecture to reason from

    Use this diagram as a starting point, not as a universal blueprint. The important move is to make the stages visible. Once stages are visible, you can assign owners, define contracts, set permissions, measure quality, and decide where human review belongs.

    Workflow Map
    Read left to right: state moves through controlled boundaries.
    1
    Task Boundary

    Define the input and constraint boundary.

    2
    LLM Reasoner

    Transform state through a controlled interface.

    3
    Tool Set

    Transform state through a controlled interface.

    4
    Short-Term Memory

    Transform state through a controlled interface.

    5
    Retriever

    Transform state through a controlled interface.

    6
    Human Handoff

    Return evidence, state, and decision context.

    Code Example

    Narrow tool contract

    The example below is intentionally small. Production agentic systems should start with compact contracts like this because small contracts are testable. Once the boundary is working, you can add richer orchestration without losing control of the core behavior.

    ts·Narrow tool contract
    interface InvoiceLookupInput {
      invoiceId: string;
    }
    
    async function lookupInvoice(input: InvoiceLookupInput) {
      if (!input.invoiceId.startsWith("INV-")) {
        throw new Error("Invalid invoice id");
      }
      return { status: "pending_review", total: 4280 };
    }
    Illustrative pattern — not production-ready

    Implementation notes

    Treat these notes as the first design review checklist. They are deliberately concrete because agentic systems fail most often in the gaps between the model, the tools, the data, and the human operating process.

    Design note 1

    Define one narrow business workflow before adding memory or multi-agent behavior.

    Design note 2

    Use typed tools so the model cannot invent arbitrary action parameters.

    Design note 3

    Prefer approved retrieval over broad long-term memory for early systems.

    Long-term memory is a governance problem
    Every fact stored in long-term memory will be used by future runs as trusted context. If that memory contains stale data, user-specific information without retention policies, or poisoned inputs, the agent will confidently act on incorrect beliefs. Treat agent memory with the same care as a production database.

    Common failure modes

    The fastest way to make an article useful is to name how the pattern breaks. These are the failure modes to watch for when a team moves from reading about this idea to deploying it inside a real workflow.

    The tool is too broad and becomes an unreviewed remote-control surface.
    Long-term memory stores stale facts that later runs treat as ground truth.
    The system cannot explain why a tool was selected or what context supported it.

    Operating checklist

    Before this pattern graduates from experiment to production, require a short operating checklist. The checklist should include the owner of the workflow, the allowed tools, the risk rating for each tool, the data sources the agent can use, the completion criteria, the review path, and the rollback plan. If a team cannot fill out that checklist, the workflow is not ready for higher autonomy.

    The checklist should also define how the system will be evaluated after launch. Useful metrics include task success rate, human correction rate, average iterations per completed task, cost per successful run, escalation rate, and the number of blocked tool calls. These metrics turn agent quality into an engineering conversation instead of an opinion about whether the output felt good.

    Finally, make the learning loop explicit. When the agent fails, decide whether the fix belongs in the prompt, the retrieval layer, the tool contract, the permission model, the evaluation suite, or the human process. Mature agentic engineering is not the absence of failures. It is the ability to classify failures quickly and improve the system without expanding risk.

    Key Takeaways
    An LLM is the reasoning unit, not the entire agent.
    Narrow task boundaries make agents easier to test and trust.
    Memory should be designed deliberately, not added by default.
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