A Large Language Model (LLM) generates text based on the input prompt.

An AI Agent goes beyond text generation by:

→ Reasoning → Planning → Using tools → Executing actions → Observing results → Deciding the next step

Think of it like this:

LLM: Question → Answer AI Agent: Goal → Reason → Plan → Use Tool → Observe → Decide → Repeat → Final Answer

Example:

User: "Book me the cheapest flight to Dubai next Friday."

LLM alone may suggest websites.

AI Agent:

→ Searches flights

→ Compares prices

→ Books tickets (if authorized)

→ Sends confirmation

Why Interviewers Ask This?

This is one of the most common introductory Agentic AI questions.

Common Mistakes:

→ Saying an LLM is an AI Agent.

→ Thinking agents are simply prompt chains.

→ Ignoring tool usage..

Follow-up Questions:

→ What is Agentic AI?

→ What is Tool Calling?

→ Why do agents need memory?

Production Insight:

LLMs provide reasoning capabilities, while agents orchestrate reasoning with external tools to accomplish real-world tasks.

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