The Agent Loop

Understanding the core cycle that powers autonomous AI agents: observe, think, act, repeat.

What is the Agent Loop?

The agent loop is the fundamental cycle that enables AI agents to interact with their environment autonomously. It consists of observation, reasoning, action, and feedback phases that repeat continuously.

The reality? An agent is just an LLM running in a while loop.

The Four Phases

Observe

Gather information from the environment, tools, and user input.

Think

Reason about the current state and decide on the next action.

Act

Execute the chosen action using available tools.

Learn

Process feedback and update understanding for the next iteration.

The Core Pattern

context = [system_prompt, tool_definitions]
context.append(user_message)

while True:
  response = llm(context)

  if response.has_tool_call:
    # Execute the tool and add result to context
    result = execute_tool(response.tool_call)
    context.append(response)
    context.append(result)
    continue  # Loop again

  else:
    # No tool call = final answer
    return response.content
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Watch It In Action

See how the context builds up through the loop

Start Loop

Step #0

Loop #1
context = [system_prompt, tool_defs]
while True:
response = llm(context)
if response.has_tool_call:
result = execute_tool(response.tool_call)
context.append(result)
else:
return response.content

Context

0 tokens

Start Loop

Key Takeaways

  • 1The loop continues until the task is complete or terminated
  • 2Each iteration builds on previous observations and actions
  • 3Error handling and recovery are crucial for robust agents
  • 4The quality of tools directly impacts agent capabilities