AI agent

A system where an LLM plans and executes actions toward a goal using tools, memory, and feedback loops.

When to use it

  • Tasks require multiple steps or decisions (e.g., research → draft → send).
  • You need autonomy within guardrails, not just single-turn completions.
  • Human operators are overloaded and consistency is poor.

PM decision impact

Agents expand surface area and risk. PMs define scope, stopping rules, and observability. The payoff is faster delivery and fewer manual steps; the risk is runaway actions, cost spikes, or policy breaches. KPIs include task success rate, cost per task, and time-to-complete.

How to do it in 2026

Start narrow: one clear goal, few tools, explicit stop conditions. Add step-level logging and replay. In 2026, pair agents with safety rails, per-tool budgets, and a lightweight overseer that can abort or request confirmation on high-risk steps. Ship with evals that mirror the full multi-step journey, not isolated steps.

Example

A growth agent researches competitor pricing, drafts a comparison email, and schedules A/B tests. With tool budgets and approvals for send actions, it achieves 72% task success while keeping cost under $0.18 and p95 completion time under 90 s.

Common mistakes

  • Launching wide-scope agents without stop rules, causing loops and bills.
  • Missing observability, so you cannot debug failures or user complaints.
  • Letting agents call external APIs without permissioning or rate limits.

Related terms

Learn it in CraftUp

Last updated: February 2, 2026