Artificial Intelligence Agents: Architecture & Applications

Artificial Intelligence Agents: Architecture & Applications

Taylor Grenawalt

Director,  Research & Insights

October 15, 2024

10 min

AI agents represent a groundbreaking shift in artificial intelligence, enabling systems to autonomously perform tasks, make decisions, and adapt to changing conditions without constant human oversight. As businesses increasingly pursue AI-driven innovation, AI agents stand out for their ability to independently optimize processes, enhance operational efficiency, and drive strategic initiatives in complex environments.  

The architecture of these systems integrates advanced machine learning with dynamic data-driven decision-making frameworks, allowing them to predict outcomes, execute actions, and learn from feedback to continually improve their performance. This capability positions AI agents as a transformative force, potentially revolutionizing industries by automating critical functions, improving decision-making speed and accuracy, and enabling organizations to navigate an increasingly competitive landscape with greater agility and effectiveness.

  • AI Agent Architecture: AI agents are built on a layered architecture that mirrors human cognitive processes, integrating perception, decision-making, action, and continuous learning. This design enables them to operate autonomously, predict outcomes, and adapt to new information, making them highly effective in dynamic and complex environments.
  • Data Maturity: The effectiveness of AI agents is heavily reliant on the availability and management of structured and unstructured data. Advanced data management solutions, including data lakes, warehouses, and lakehouses, ensure high-quality data that AI agents can leverage for accurate decision-making and optimized performance.
  • AI Agent Machine Learning Frameworks: Both model-based and model-free reinforcement learning (RL) frameworks are critical to AI agents’ functionality. These frameworks enable agents to learn optimal behaviors through trial and error, enabling them to adapt to complex, unpredictable scenarios and improve their decision-making over time.
  • Computational Processing & Performance: The advancement of AI agents is deeply tied to the evolution of computational power, particularly with GPUs and advanced AI hardware that support the parallel processing needed for deep learning. Scalable, cloud-based AI services further enhance these agents’ ability to process and learn from massive datasets in real-time, accelerating deployment and performance.
  • Horizontal & Vertical AI Agents: Horizontal AI agents are versatile and capable of adapting across various industries by tailoring their functions to specific needs. In contrast, vertical AI agents are specialized, leveraging domain-specific knowledge to solve unique challenges within particular sectors, such as healthcare and finance, offering highly targeted solutions that drive efficiency and innovation.

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The AI Agent Architecture

AI agents represent a significant advancement in AI/ML, where systems operate autonomously, executing tasks and making decisions independently without direct human intervention. These AI systems are designed to be proactive, capable of self-directed learning and adaptive behaviors, mimicking the decision-making processes of human agents. The architecture of AI agents combines advanced machine learning models with a complex set of rules and algorithms that enable these systems to assess situations, predict outcomes, and take appropriate actions.


Characteristics & Capabilities

AI agents are fundamentally driven by their autonomy, reactivity, and proactivity. Autonomy enables agents to operate independently, setting their goals and determining the best course of action without constant human oversight. This independence is particularly important for applications in environments where continuous human intervention is impractical, such as autonomous vehicles or industrial automation. Reactivity ensures that agents can quickly respond to changes in their environment, adapting their actions based on real-time data. This capability is vital in dynamic settings where conditions can change rapidly, requiring the agent to adjust its strategy on the fly to maintain effectiveness.

Additionally, the proactiveness of AI agents allows them to anticipate future events and take preemptive actions to achieve their objectives. This proactive behavior is particularly important in scenarios that demand long-term planning, such as supply chain management, where the agent must foresee potential disruptions and make adjustments to minimize impact. Furthermore, AI agents are designed to learn and adapt over time, improving their performance based on new information and feedback. This learning capability ensures that the agent becomes more effective as it gains experience, making it more resilient and capable of handling increasingly complex tasks over time. These core components collectively enable AI agents to operate efficiently and autonomously in various applications, driving greater operational optimization, resource efficiency, and technological capability.  


Core Components

Architecture of AI agents

The architecture of AI agents is built on a layered approach, with each layer serving a distinct function that mirrors the human cognitive process. The first layer, perception, involves sensory input processing, where the AI system collects data from its environment through various sensors. This layer uses advanced computer vision, natural language processing, and sensor fusion techniques to create a coherent and dynamic understanding of the environment. The accuracy and efficiency of this layer are critical as it directly impacts the quality of the data fed into subsequent layers.

The decision-making layer is the core of AI agents, where the system evaluates the processed data against a set of pre-defined goals and strategies. This layer utilizes a combination of rule-based systems and machine learning models, particularly reinforcement learning algorithms, to make predictions and choose actions. The decision-making process is designed to be dynamic, continuously adjusting to new information and optimizing decisions based on feedback loops.

Following decision-making is the action layer, where the chosen strategies are executed. This layer interacts with the physical or digital environment, implementing decisions through actuators in physical systems or application programming interface (API) calls in digital environments. The effectiveness of this layer is measured by how well it translates decisions into desired outcomes, often requiring real-time adjustments and adaptations.

The final layer is feedback and learning, which is integral to the adaptive capabilities of AI agents. In this layer, the system evaluates the outcomes of its actions, updating its models and strategies based on successes and failures. This continuous learning process is crucial for improving the system’s performance over time, allowing it to adapt to changing environments and evolving goals.  

Each layer is interconnected, ensuring that AI agents operate as a cohesive, self-improving system capable of autonomous decision-making and action.

Data Maturity  

Data maturity is foundational to the effectiveness of AI agents, directly influencing their ability to process, learn from, and act on vast amounts of data. For AI agents to perform optimally, they require access to high-quality, well-managed data, including the vast amount of unstructured data from text, images, and videos – a notable challenge to realizing AI agents’ full potential and value. Effective data management solutions, such as data lakes, warehouses, and lakehouses, are essential in organizing and integrating the growing ecosystem of diverse data types, formats, and structures. These systems ensure that AI agents can seamlessly access and analyze diverse datasets, enabling more accurate decision-making and improving overall performance across various applications.

Data Availability

The effectiveness of AI agents hinges on the availability and quality of data, particularly in how they handle structured and unstructured data. Structured data—such as that found in IT systems, industrial sensors, and sales databases—provides a reliable foundation for training AI models. This type of data is often well-organized, making it easier for AI systems to extract meaningful insights quickly. However, the real challenge lies in leveraging unstructured data, which includes text, images, video, and other formats that are not easily categorized.

Unstructured data is increasingly prevalent, particularly in research, documentation, and customer-intensive industries such as healthcare and finance. To fully unlock the potential of AI agents, organizations need to improve their maturity in unstructured data. This involves deploying advanced NLP techniques, computer vision algorithms, and machine learning frameworks capable of understanding and processing this data. Enhancing the AI system’s ability to interpret unstructured data will enable more nuanced decision-making and improve the system’s overall performance.

Moreover, integrating unstructured and structured data can lead to richer datasets, providing a more holistic and informed view of the environment. For instance, combining sales data (structured) with customer feedback from social media (unstructured) can offer deeper insights into customer behavior, enabling more targeted marketing strategies. As organizations continue to generate vast amounts of data, effectively processing and integrating both structured and unstructured data will be a critical factor in the success of AI agent systems.

Highlighted Solutions:

  • Dataloop offers a robust platform for managing and processing unstructured data at scale, enabling rapid AI development through enhanced data visualization, exploration, and management tools.
  • Matillion streamlines the creation and transformation of data pipelines, enabling the integration and processing of unstructured data for AI applications through a no-code platform that supports large-scale analytics and the incorporation of LLMs.
  • Vast Data provides scalable, intelligent storage solutions that efficiently manage and enrich large volumes of structured and unstructured data, enabling real-time analysis and AI-driven insights across diverse, data-intensive applications.
  • Unstructured specializes in transforming complex, difficult-to-use data formats into AI-ready JSON files, streamlining large-scale preprocessing for enterprises and enabling seamless integration with major vector databases and LLMs.
  • DryvIQ provides AI-powered unstructured data management solutions that enable businesses to classify, secure, and efficiently manage vast amounts of unstructured data across various repositories, ensuring enhanced visibility, compliance, and actionable insights at scale.

Data Management

In the context of AI agents, data lakes, data warehouses, and data lakehouses each play a crucial role in storing, managing, and processing the vast amounts of data required to train and operate these advanced AI systems.

Data lakes are particularly valuable for handling the diverse and unstructured data typical of AI environments. By decoupling storage from compute, data lakes enable organizations to scale storage independently, making it cost-effective to store large volumes of raw data, such as sensor readings, logs, and multimedia content, which can be later processed for machine learning applications. However, the flexibility of data lakes also presents challenges, particularly in ensuring data quality and consistency, which are essential for the reliable functioning of AI agents.

Data warehouses, on the other hand, are optimized for structured data and are essential for scenarios where data integrity, speed, and reliability are paramount, such as in real-time decision-making and reporting within AI agent systems. The structured nature of data warehouses makes them ideal for supporting business intelligence and analytics functions that require fast, SQL-based queries on clean, well-organized datasets. However, the rigidity of data warehouses can limit their applicability in the more dynamic and unstructured data environments that AI agents often require.

Data lakehouses offer a hybrid approach, merging the flexibility and versatility of data lakes with the structured data management and reliability of data warehouses. This makes data lakehouses particularly well-suited for AI agent systems that need to leverage both structured and unstructured data for advanced analytics and machine learning workloads. By supporting the storage and processing of all data types in a single platform, data lakehouses can streamline the data pipeline, reduce redundancy, and enhance the efficiency of AI-driven insights. As such, data lakehouses represent a modern, versatile solution for organizations aiming to harness the full potential of AI agents while managing costs and maintaining data quality across diverse data sources.

Highlighted Solutions:

  • Dremio provides a high-performance data lakehouse platform optimized for self-service analytics, enabling organizations to efficiently manage and query structured and unstructured data across on-premises, hybrid, and cloud environments with minimal data movement.
  • Ellie is a data management platform that specializes in data product design and modeling, providing tools like a business glossary and collaboration features to streamline data-driven decision-making and enhance data warehousing and mesh strategies.
  • ClickHouse is a real-time data warehouse optimized for data processing and analytics, offering high-speed query performance and scalability for data-intensive applications in both on-premises and cloud environments.
  • Starburst delivers high-performance data analytics and query acceleration through its data lakehouse platform, enabling efficient data management and analysis across hybrid, on-premises, and multi-cloud environments for AI agents.
  • Incorta offers an innovative lakehouse-based data delivery platform that accelerates data management and analytics by integrating complex data sources, reducing delivery costs and time, and providing operational insights for AI agents.

AI Agent Machine Learning Frameworks

AI agent machine learning frameworks are critical to the development and functionality of autonomous systems. They rely heavily on reinforcement learning to enable agents to learn optimal behaviors through trial and error. These frameworks are categorized into model-based and model-free algorithms, each offering distinct advantages depending on the complexity and predictability of the environment.  


Reinforcement Learning

AI agents rely heavily on reinforcement learning (RL), a subset of machine learning that enables systems to learn optimal behaviors through trial and error. RL involves an agent interacting with its environment, performing actions, and receiving feedback through rewards or penalties. Over time, the agent develops a policy—a mapping from states to actions—that maximizes cumulative rewards. Two main types of RL are employed: model-based and model-free methods.


Model-Based Algorithms

Model-based algorithms in reinforcement learning enable an agent to predict the outcomes of actions using an internal environment model. This approach is highly effective in static environments with well-defined rules and outcomes, allowing the agent to simulate future states and make decisions that maximize long-term rewards. A significant advantage of model-based algorithms is their ability to plan ahead, providing a strategic framework for decision-making. However, their effectiveness is limited in dynamic environments where conditions frequently change, as the model’s accuracy becomes a critical factor.

Markov Decision Process (MDP) - The foundational framework for modeling decision-making in environments with stochastic outcomes.

The Markov Decision Process (MDP) is a mathematical framework used in reinforcement learning to model decision-making in environments where outcomes are partly random and partly under the decision-maker’s control. MDPs are characterized by a set of states, actions, and rewards, with the agent’s goal being to maximize the cumulative reward over time. The MDP framework is advantageous because it accounts for the entire sequence of actions rather than just immediate rewards, enabling more strategic and long-term decision-making.  

Bellman Equation - Provides the recursive relationship used to calculate the value of states or state-action pairs within the MDP framework.

The Bellman Equation is a fundamental concept in reinforcement learning that provides a recursive definition for the value of a state or state-action pair based on expected future rewards. It is used to calculate the optimal value function, which represents the maximum cumulative reward that can be achieved from any given state by following the best possible policy. The equation takes into account the immediate reward from an action as well as the discounted future rewards from subsequent actions, weighted by a discount factor that prioritizes short-term gains over long-term ones.  

Value Iteration - An iterative approach within dynamic programming that focuses on finding the optimal value function by updating the state values until they converge.

Value iteration is an iterative algorithm used to compute the optimal policy in a Markov Decision Process. The algorithm works by updating the value of each state based on the expected returns of each possible action. This process continues until the values converge, meaning no further updates significantly change the state values. Value iteration is powerful because it ensures that the derived policy is optimal, meaning it provides the best possible actions for each state to maximize overall rewards. This method is particularly effective in environments where the state space is manageable, allowing for precise calculation of state values.

Policy Iteration - Combines policy evaluation and policy improvement, iteratively refining the policy until it becomes optimal based on the value function.

Policy iteration is another method for finding the optimal policy in an MDP. It involves two main steps: policy evaluation and policy improvement. In the policy evaluation step, the algorithm calculates the value of each state under the current policy. During policy improvement, the algorithm updates the policy by selecting actions that maximize the state values. This process repeats until the policy stabilizes, resulting in an optimal policy. Policy iteration is particularly useful in scenarios where a near-optimal solution is needed quickly, as it often converges faster than value iteration.  

Model-Free Algorithms

Model-free algorithms, in contrast, do not rely on a predefined model of the environment and instead learn optimal policies through direct interaction with the environment. These algorithms are particularly suited to dynamic and complex environments where the rules are not fully known or are too difficult to model accurately. By using trial and error, model-free methods such as Q-learning allow the agent to adapt its strategy based on the rewards received from various actions. This flexibility makes model-free algorithms ideal for scenarios like autonomous driving, where the environment is unpredictable and constantly evolving.

Q-Learning - A model-free reinforcement learning algorithm that iteratively updates state-action values to find the optimal policy through direct interaction with the environment.

Q-learning is a reinforcement learning technique designed to find the optimal action-selection policy by maximizing the cumulative reward over time. It achieves this by iteratively updating the values of state-action pairs in a table, known as the Q-table, based on the Bellman Equation. The algorithm does not require a model of the environment, making it model-free and ideal for situations where the environment is unknown or complex. Q-learning operates by exploring the environment, taking actions, and receiving rewards, which are used to update the Q-values. Over time, these updates guide the agent toward the optimal policy that maximizes rewards across all states.  

Asynchronous Advantage Actor-Critic (A3C) – Accelerates learning by using multiple agents in parallel, combining policy gradients and value-based methods for efficient decision-making in complex environments.

An advanced technique within model-free RL is Asynchronous Advantage Actor-Critic (A3C), which allows multiple agents to learn in parallel, significantly speeding up the training process and improving the diversity of experiences collected. By using a combination of policy gradients and value-based methods, A3C offers a robust framework for developing AI agents that can learn efficiently in complex, dynamic environments.

Highlighted Solutions:

  • PyTorch is an open-source machine learning framework that supports fast prototyping and efficient production deployment, with a rich ecosystem of tools and libraries for reinforcement learning and other AI applications.
  • TensorFlow is an end-to-end open-source platform that facilitates the building, training, and deployment of machine learning models, offering multiple levels of abstraction and reinforcement frameworks.  
  • Adaptive ML provides a platform for privately tuning and deploying LLMs using reinforcement learning to optimize generative AI applications while ensuring data privacy and control over model performance.
  • Hugging Face manages a collaborative machine learning platform, providing over 300,000 models, 50,000 datasets, and open-source libraries like Transformers to support reinforcement learning and other AI applications.
  • AgileRL offers enterprise-grade tools and an open-source framework supporting a wide range of RL approaches, including multi-agent systems, with features like automatic tuning and real-time analytics to accelerate AI development.

Computational Processing & Performance

The advancement of AI agents is deeply intertwined with advancements in computational power. Modern graphics processing units (GPUs) and have been a key catalyst to the emergence of transformative AI agents, providing the necessary hardware to support complex deep learning algorithms in real-time. These processors are optimized for the parallel processing required in deep learning, enabling AI agents to process vast amounts of data quickly and efficiently.

Moreover, the rise of specialized AI hardware, such as Google’s tensor processing units (TPUs) and NVIDIA’s AI-focused GPUs, has further accelerated the development of AI agents. These processors are specifically designed to handle the high computational demands of training large-scale neural networks, which are central to the functionality of AI agents. The ability to train models faster and with greater accuracy allows organizations to deploy AI agents more rapidly, reducing time-to-market for new AI-driven products and services.

Further, the integration of AI with cloud computing platforms has enabled scalable, on-demand access to computational resources. Cloud-based AI services, including cloud compute and GPU cloud compute, allow organizations to leverage powerful computational infrastructure without the need for significant upfront investments. This scalability is essential for AI agents, where the ability to process and learn from massive datasets in real-time is crucial. As cloud platforms continue to evolve, they are likely to play an increasingly important role in the deployment and scalability of AI agents.

Highlighted Solutions:

  • Lambda offers cloud GPU services and infrastructure optimized for AI training and inference, providing on-demand access to NVIDIA H100 and GH200 Tensor Core GPUs and supporting high-performance computing for AI-focused clients globally.
  • Foundry delivers a scalable public cloud platform with high-performance GPU services, offering reliable and cost-efficient access to advanced compute resources for AI applications while eliminating the need for complex hardware management.
  • MangoBoost provides scalable data processing units (DPUs) that optimize computational efficiency, reduce server costs, and accelerate AI and high-performance computing workloads.  
  • CoreWeave is a cloud provider offering a Kubernetes-native platform optimized for large-scale GPU-accelerated workloads, delivering high-performance compute solutions for AI/ML applications and technologies.  
  • Liqid offers composable infrastructure solutions, enabling dynamic, on-demand allocation of GPUs and other resources to optimize performance for AI/ML, HPC, and modern workloads, while significantly reducing data center costs and improving IT agility.

Horizontal AI Agents  

Horizontal AI agents are designed to be versatile and capable of adapting to various use cases across different industries by dynamically tailoring their functions. These agents leverage the integration of LLMs with agentic systems, combining contextual understanding with autonomous decision-making to perform a wide range of tasks. This flexibility allows them to be deployed in diverse environments, from finance and healthcare to IT and cybersecurity, where they can manage complex interactions, anticipate user needs, and autonomously adjust their behavior to optimize outcomes. The adaptability of horizontal AI agents makes them particularly valuable for applications that require both sophisticated linguistic processing and autonomous action.

Highlighted Solutions:

  • Helper AI enables users to create a virtual workforce of AI agents to automate online functional tasks and workflows.  
  • Cimba AI offers an innovative platform that empowers organizations to create custom AI agents based on structured and unstructured data without extensive coding.
  • LokiBots’s zero-code platform enables businesses to create AI-powered chatbots and agents, allowing for the rapid automation of processes across various industries and functions.
  • Beam AI offers an agentic process automation platform that deploys pre-trained and customizable AI agents to streamline workflows and enhance productivity.

Vertical AI Agents  

Vertical AI agents are specialized systems designed to operate within specific industry contexts. They leverage domain-specific knowledge and tailored algorithms to address unique challenges and optimize processes. Unlike horizontal AI agents, which are versatile and adaptable across various sectors, vertical AI agents focus on delivering targeted solutions within a particular field, making them highly effective in enhancing efficiency and decision-making.

Industry Spotlight – Healthcare AI Agents

In the healthcare industry vertical, AI agents are transforming diagnostics, treatment planning, and patient care. By analyzing complex medical data, including imaging scans, genetic profiles, and electronic health records, these AI systems provide critical insights that support precise clinical decisions. Personalized medicine is one of the most impactful applications, where AI-driven models recommend treatments tailored to an individual’s unique genetic makeup and medical history. Additionally, AI agents enhance operational efficiency by automating routine tasks, such as patient triage and administrative work, and even assisting in surgical procedures with greater precision and consistency than human surgeons.

Highlighted Solutions:

  • Health Force offers AI-powered automation solutions for healthcare institutions, using digital agents to streamline administrative tasks like scheduling and billing, enabling hospital staff to focus more on patient care.
  • Hippocratic AI develops highly specialized AI agents designed to enhance various aspects of healthcare, focusing on non-diagnostic applications, including lab interpretation, medication management, and patient care.
  • SmartAction provides healthcare organizations with AI agents that enhance the patient experience by automating various tasks, including appointment scheduling, lab results, and patient onboarding.
  • Kairo Health develops AI agents that automate routine healthcare tasks, such as patient check-ins and clinician scheduling, to enhance operational efficiency and reduce costs.
  • Thoughtful.AI specializes in developing AI agents for healthcare revenue management, automating key processes such as eligibility verification, claims management, and payment posting to enhance financial outcomes for healthcare providers.

Conclusion  

AI agents are poised to reshape the future of business operations, offering unprecedented levels of autonomy and efficiency in decision-making and process optimization. By leveraging advanced AI techniques, these systems empower organizations to innovate faster, respond more effectively to challenges, and maintain a competitive edge in rapidly evolving markets. The transformative potential of AI agents lies in their ability to seamlessly integrate into various industry sectors, automating complex tasks and enabling smarter, more strategic decision-making. As companies continue to embrace AI-driven solutions, AI agents will play a crucial role in driving the next wave of technological advancements and business success.

Ready to transform your business operations with the power of AI agents? Connect with our expert Research Team and leverage our AI Advisory & Consulting Services to discover how our tailored AI solutions can help you automate critical processes, enhance decision-making, and maintain a competitive edge in today’s fast-paced market. Whether you’re looking to integrate advanced AI systems into your existing infrastructure or explore new AI agent opportunities, our consulting services are here to guide you every step of the way.