Guide to Building Good AI Agents

Aman Singh
3 min readFeb 6, 2025

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AI Agents Guide

Artificial Intelligence (AI) agents are transforming industries by automating complex tasks, improving decision-making, and enhancing user experiences. Whether you’re building a chatbot, an automation assistant, or a research companion, a well-structured approach is key to creating an effective AI agent. This guide will walk you through the essential steps to build a powerful and efficient AI agent.

1. Choose the Right LLM

Not all large language models (LLMs) are created equal. Selecting the right one can make a significant difference in performance. Consider the following factors:

  • Reasoning Capabilities: Choose an LLM that excels in reasoning benchmarks.
  • Chain-of-Thought (CoT) Prompting: Models that support CoT tend to deliver more accurate and logical responses.
  • Consistency: Look for models that produce reliable and predictable results.

📌 Tip: Experiment with different models and fine-tune prompts to enhance reasoning and accuracy.

2. Define the Agent’s Control Logic

An AI agent needs a strategic approach to operate efficiently. Common methodologies include:

  • Tool Use: Deciding when to call external tools versus responding directly.
  • Basic Reflection: Generating responses, critiquing them, and refining answers.
  • ReAct Framework: Planning, executing, observing outcomes, and iterating accordingly.
  • Plan-then-Execute: Outlining all steps before execution for structured problem-solving.

📌 Choosing the right approach improves the agent’s reasoning and reliability.

3. Define Core Instructions & Features

Clear operational rules shape an AI agent’s behavior. Consider:

  • How should the agent handle unclear queries? (Ask clarifying questions?)
  • When should it use external tools?
  • Formatting rules (Markdown, JSON, etc.)?
  • Preferred interaction style (formal, casual, structured)?

📌 A well-crafted system prompt ensures the agent follows the intended behavior.

4. Implement a Memory Strategy

Since LLMs do not retain previous interactions, incorporating a memory strategy is essential:

  • Sliding Window: Keeps recent interactions while discarding older ones.
  • Summarized Memory: Condenses key points from past conversations.
  • Long-Term Memory: Stores user preferences for personalization.

📌 Example: A financial AI remembers a user’s risk tolerance from past chats.

5. Equip the Agent with Tools & APIs

Extending the agent’s capabilities with external tools enhances its functionality. Key considerations:

  • Clear Naming: Use intuitive tool names (e.g., “StockPriceRetriever”).
  • Description: Clearly define what each tool does.
  • Schemas: Define input/output formats for structured responses.
  • Error Handling: Determine how failures are managed.

📌 Example: A support AI retrieves order details via a CRM API.

6. Define the Agent’s Role & Key Tasks

Narrowly focused agents perform better than general-purpose ones. Clearly define:

  • Mission Statement: (e.g., “I analyze datasets for insights.”)
  • Key Tasks: (Summarizing, visualizing, analyzing data)
  • Limitations: (e.g., “I don’t offer legal advice.”)

📌 Example: A financial AI focuses strictly on finance-related queries.

7. Handling Raw LLM Outputs

Post-processing AI-generated content ensures accuracy and structure:

  • Convert AI responses into structured formats (JSON, tables, etc.).
  • Validate correctness before presenting responses to users.
  • Ensure the proper execution of tools.

📌 Example: A financial AI converts extracted data into a structured JSON format.

8. Scaling to Multi-Agent Systems (Advanced)

For complex workflows, multiple AI agents can work together. Key considerations:

  • Information Sharing: Determine what context is shared among agents.
  • Error Handling: Plan how failures are managed.
  • State Management: Implement mechanisms to pause/resume tasks.

📌 Example Workflow: 1️⃣ One agent fetches data. 2️⃣ Another agent summarizes it. 3️⃣ A third agent generates a final report.

Conclusion

Mastering these fundamental steps enables you to build a robust AI agent capable of reasoning, tool usage, and memory retention. Experiment, refine, and innovate — your next AI agent could redefine how we interact with technology.

🚀 Now go build something amazing!

Happy agenting! 🤖

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Aman Singh
Aman Singh

Written by Aman Singh

Product Engineer tackling contract lifecycle management challenges. Passionate about personal development and impact-driven decisions. Tech meets growth.

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