Explainer 01 · 10 scenes · about 8 min

How an AI agent actually works, and why it needs your approval

An agent is a language model in a loop with tools. Follow one through a real-looking job: it plans, calls tools, writes a draft, waits for a person, and only then acts. Then switch the approval off and see what goes wrong.

Hands on Run an agent on a guest's email, plant a problem, then skip the approval and watch the result.

Example
loopJobPlanToolsDraftCheckActReceipt

The loop, in four lines

until the job is done:
  read the job and everything so far
  pick the next step, or a tool to call
  run the tool, add its result

The model only ever writes text. The loop and the tools are ordinary software around it.

  1. 01/ 10

    An agent is a model in a loop

    A language model does one thing: given some text, it writes the next text. On its own it cannot read your calendar or send an email.

    An agent is that model put in a loop with tools. It reads the job, decides a next step, asks the software around it to run a tool, reads the result, and goes round again until it decides the job is done.

  2. 02/ 10

    A job arrives

    A guest emails a small homestay. She wants to move her dates, and get the difference back if the new nights are cheaper.

    A person would take five minutes: find the booking, check the room, work out the price, write back. The agent does the same steps, out loud.

  3. 03/ 10

    It writes itself a plan

    The first thing the model writes is usually a plan: a short list of steps. It is just text, but it steers what comes next.

    Notice that it plans with what it has read. Whatever is in the email becomes part of its thinking. That matters in scene 8.

  4. 04/ 10

    It calls a tool

    The model can't open the booking system. Instead it writes a request in a fixed shape, like find_booking(guest, room). The software around it runs that request and pastes the answer back in.

    Which tools exist, and what each one is allowed to touch, is decided by the people who build the agent. That is the first safety switch.

  5. 05/ 10

    It reads the result and goes round again

    Each result becomes part of the text the model reads next, so it can choose the next call: is the room free, what do the new nights cost.

    Research calls this pattern reasoning and acting: think a step, act, look, think again. Three tool calls here; a big job might take dozens.

  6. 06/ 10

    It drafts

    When it thinks it has enough, the agent writes the reply and the changes it wants to make: move the booking, refund the difference.

    Here is the rule we build everything on: this is a draft. Nothing has been sent and no money has moved. Violet, on our screens, always means a draft.

  7. 07/ 10

    A person checks

    The draft goes to a person, with the evidence beside each claim: which tool said the room is free, where the refund amount came from.

    Checking takes seconds when the evidence is shown. Approve it, or send it back with a note. Try both on the stage.

  8. 08/ 10

    Now break it

    Plant a problem, switch the approval step off, and run the agent again. Then try the same problem with approval on.

  9. 09/ 10

    Why it goes wrong

    None of these needs a bad model. A tool times out and the model writes a plausible guess. An email carries instructions, and the model follows them, because to a model all text is just text. Security people call this prompt injection, and list it first among the risks of AI applications.

    The third problem is the multiplier: an agent that can press the refund button itself turns every slip into money gone. They call it excessive agency.

  10. 10/ 10

    Then it acts, and leaves a receipt

    Only after a yes does the software carry out the action. Then it writes a receipt: what was asked, what was drafted, who decided, and the evidence.

    It is how INDRA works: agents draft invoices and replies, people approve, and every action leaves a signed receipt. Open the live demo, or see how receipts prove they were never changed.

01In plain words

The short version.

  1. An AI agent is a language model in a loop with tools: it plans, calls a tool, reads the result, and repeats until it decides it is done.

  2. The model only writes text. Software around it runs the tools, so people decide what the agent can reach.

  3. Agents go wrong in ordinary ways: they guess when a tool fails, and they can follow instructions hidden in what they read.

  4. So the agent drafts and a person approves, with the evidence for each claim shown beside it. The button that sends money or messages stays with a person.

  5. Every decision, a yes or a send-back, leaves a receipt.

02Sources

Where the facts come from.

  1. Building effective agents

    Anthropic · December 2024 · agents as models directing their own tool use in a loop

  2. ReAct: Synergizing Reasoning and Acting in Language Models

    Yao et al., ICLR 2023 · October 2022 · the think, act, observe loop

  3. OWASP Top 10 for LLM Applications 2025

    OWASP GenAI Security Project · November 2024 · LLM01 Prompt Injection, LLM06 Excessive Agency

Example

The businesses, people and numbers inside the interactive stage are examples made up for this page. The mechanisms are real, and everything runs in your browser: nothing you type is sent anywhere.

Want this working in your business?

Tell us the job. A person reads every request and replies by email.