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Written by Max Zeshut
Founder at Agentmelt
The core execution cycle of an AI agent: receive input → reason about the task → decide on an action → execute the action → observe the result → reason again → repeat until the task is complete or a termination condition is met. The agent loop is what distinguishes agents from single-shot LLM calls—the model iterates, using tool results and intermediate observations to refine its approach. Loop design determines agent capability: how many iterations are allowed, what termination conditions exist, how errors trigger retries, and whether the agent can request human input mid-loop.
A data analysis agent receives 'Find the top 5 factors driving customer churn last quarter.' The agent loop runs 7 iterations: (1) query the data warehouse for churn data, (2) observe the schema and identify relevant tables, (3) write and run a SQL query for churn correlations, (4) analyze results and identify that the query missed a key table, (5) refine the query, (6) run the updated query and get clean results, (7) synthesize findings into a ranked list with statistical support.