Artificial intelligence is no longer the stuff of science fiction — it’s rapidly  becoming a practical part of everyday work. If you’re in tech, innovation or marketing, chances are you’re hearing more and more about AI agents. But how well do you really understand all the jargon that keeps popping up in conversations?

In this article, we’ve created a fast, no-nonsense glossary of 10 essential concepts you’ll need to know if you’re working with intelligent agents. Think of it as a quick-reference guide — clear, concise, and brought to you by the experts at Jelliby.

1. AI Agent: Your New Autonomous Teammate

An AI agent is a system designed to make decisions and take action independently, with a specific goal in mind. Unlike traditional virtual assistants, it doesn’t just respond — it gets things done.

2. Prompt: clear instructions for accurate results

A prompt is the instruction or input you give the agent to let it know what to do. The clearer you are, the better the outcome.

A vague prompt is like giving your team a half-baked brief — chaos tends to follow.

3. Context: the agent’s working memory

Context is the background information the agent uses to interpret your requests accurately.

Mentioned something earlier in the conversation? The context helps the agent remember it — crucial for keeping responses on track and relevant.

4. LLM (Large Language Model): the language engine

An LLM is a large-scale language model that allows the agent to understand and generate human-like text.
It’s the linguistic brain behind the scenes — capable of chatting, writing, summarising and translating with ease.

5. Autonomy: acting without hand-holding

Autonomy gives the agent the ability to carry out tasks without constant supervision.

Ideal for complex workflows, repetitive processes or anything you’d rather not spend your own time managing.

6. Task: the agent’s to-do

A task is the specific action the agent performs — whether it’s drafting an email or analysing multiple datasets to draw conclusions. Each task is tied to a clear objective.

7. Workflow: the agent’s game plan

The workflow is the logical sequence of steps an agent follows to complete a task.
It’s the roadmap that guides its actions — and the better designed it is, the more reliable the outcome.

8. Tool / External tool: supercharging the agent

External tools refer to apps, APIs or software the agent can connect to in order to get a job done — from pulling data to sending messages.

These tools expand the agent’s capabilities and turn it into a real powerhouse.

9. Reasoning: thinking before acting

Reasoning is what allows the agent to assess options, make logical decisions, and avoid simply parroting pre-written answers.
This is where it begins to show actual intelligence — not just automation.

10. Feedback loop: learning from mistakes

A feedback loop lets the agent assess its own performance and make improvements over time.

It’s not just about completing a task — it’s about evolving and doing better next time.Curious about what intelligent agents could do for your business? Explore our services — and discover how to work smarter, not harder.