
For
AI engineers, researchers, product managers, and anyone interested in building intelligent autonomous agents that can reason, plan, and act in complex environments.
AI Agent Handbook
A Complete Guide to Building Autonomous AI Systems: From Language Models and Memory Architecture to Tool Integration, Multi-Agent Coordination, and Production Deployment
About This Book
The next frontier of AI isn't just models that respond. It's agents that act. Systems that can break down complex goals, use tools, maintain memory across sessions, and operate autonomously in the real world. This handbook is your complete guide to understanding, building, and deploying AI agents that actually work in production.
Starting from first principles, you'll learn what makes an agent more than just a chatbot. Discover how to architect systems that combine language models with persistent memory, external tools, and sophisticated reasoning chains. Understand the critical difference between agents that demo well and agents that operate reliably at scale. Every concept is illustrated with a running example: a personal assistant that grows in capability chapter by chapter.
Key Topics
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What's Inside
Introduction to AI Agents
Language Models - The Brain of the Agent
Prompting - Communicating with Your AI
Reasoning - Teaching the Agent to Think
Tool Use - Extending the Agent's Abilities
Memory and Retrieval - How Agents Remember
Table of Contents
Introduction to AI Agents
2 chapters
Introduction to AI Agents
What Is an AI Agent?
Explains the core idea of an AI agent in clear terms, describing it as a program powered by AI that can perceive instructions, decide on actions, and produce results autonomously.
The Personal Assistant We'll Build
Presents a friendly 'personal assistant' example that will grow throughout the book, giving readers a motivating overview of what this assistant will eventually be able to do.
Language Models - The Brain of the Agent
3 chapters
Language Models - The Brain of the Agent
Introduction to Language Models
Introduces language models as the foundation of AI agents, explaining how they power every agent's ability to understand language and generate responses.
How Language Models Work (in Plain English)
Describes the basics of large language models in an accessible way, covering how models are trained to predict text and explaining concepts like vocabulary and next word prediction.
Using a Language Model in Code
Walks through a simple, runnable Python snippet that calls a language model to generate text, showing the practical side of connecting to a model.
Prompting - Communicating with Your AI
3 chapters
Prompting - Communicating with Your AI
Introduction to Prompting
Introduces the fundamental skill of communicating with AI agents through prompts, explaining why clear instructions matter and how to guide model responses effectively.
Crafting Clear Instructions
Teaches the basics of writing good prompts, emphasizing using plain, direct language and giving the AI enough detail about what you want.
Prompting Strategies and Tips
Introduces practical strategies for more effective prompting, including guiding the AI with roles or context and few-shot prompting techniques.
Reasoning - Teaching the Agent to Think
3 chapters
Reasoning - Teaching the Agent to Think
Introduction to Reasoning
Shows how to get the AI agent to reason through problems step by step using chain-of-thought prompting and other simple techniques to significantly improve the agent's ability to handle complex questions.
Step-by-Step Problem Solving (Chain-of-Thought)
Introduces chain-of-thought reasoning, showing how we can prompt the model to think in steps and break down complex questions.
Checking and Refining the Agent's Reasoning
Explains how an agent can be guided to check its own work or refine its answers, leading to more accurate and trustworthy outcomes.
Tool Use - Extending the Agent's Abilities
3 chapters
Tool Use - Extending the Agent's Abilities
Why Agents Need Tools
Uses everyday scenarios to illustrate the limitations of a stand-alone AI model and why tools are helpful for getting up-to-date information or performing precise calculations.
Designing Simple Tool Interfaces
Explains how we can connect tools to the agent in practice, describing a basic framework where the agent decides when to use a tool and how to invoke it.
Example: Adding a Calculator to Our Agent
Provides a concrete walk-through of extending the personal assistant with a calculator capability, showing how tools can be integrated step by step.
Memory and Retrieval - How Agents Remember
3 chapters
Memory and Retrieval - How Agents Remember
Short-Term Conversation Memory
Describes how the agent keeps track of recent dialogue or actions, discussing methods like storing the last N messages or summarizing the conversation.
Long-Term Knowledge Storage and Retrieval
Introduces the concept of long-term memory for the agent, explaining how it might use a database or vector store to remember facts and retrieve information when needed.
Implementing Memory in Our Agent
Walks through how we can add memory to the personal assistant in code, showing how conversation history and long-term facts can be stored and retrieved.
Agent State and Architecture - Putting It All Together
3 chapters
Agent State and Architecture - Putting It All Together
Understanding the Agent's State
Defines what state means in the context of an AI agent, including the current user goal, conversation history, intermediate results, and available tools.
Designing the Agent's Brain (Architecture)
Describes how all the pieces come together in a structured way, introducing a basic architecture that ties together input, state updates, tool use, reasoning, and output.
Managing State Across Interactions
Explains how the agent maintains continuity over multiple turns or tasks, ensuring the agent's state remains consistent and is cleared or updated appropriately.
Environment and Interaction - The Agent's World
3 chapters
Environment and Interaction - The Agent's World
Defining the Agent's Environment
Explains in intuitive terms what an environment means for an AI agent, contrasting different kinds of environments from chatbots to physical robots.
Perception and Action
Discusses how the agent perceives its environment and how it takes actions, reinforcing the idea that the environment is interactive and changes based on the agent's actions.
Environment Boundaries and Constraints
Highlights the importance of defining what the agent can and cannot do in its world, introducing the idea of constraints for safety and practicality.
Planning - Agents with a Plan
3 chapters
Planning - Agents with a Plan
Breaking Down Tasks (Task Decomposition)
Introduces task decomposition, explaining that when given a big goal, an agent should first split it into smaller, manageable pieces.
Plan and Execute
Describes how the agent uses the plan it made to actually do the work step by step, discussing sequential execution and handling failures gracefully.
Example: Planning with Our Assistant
Gives a concrete walkthrough of the personal assistant doing a planned task, showing how planning enables the agent to handle complex, multi-step tasks reliably.
Multi-Agent Systems - Teamwork Among AIs
3 chapters
Multi-Agent Systems - Teamwork Among AIs
Agents Working Together
Describes what it means for AI agents to cooperate, presenting simple collaborative scenarios where agents work together to achieve goals more effectively.
Communication Between Agents
Explains how multiple agents might talk to each other and coordinate their actions, introducing the idea of messages and common protocols for agent communication.
Benefits and Challenges of Multi-Agent Systems
Discusses why one might use multiple agents and what difficulties can arise, covering specialization, parallelism, robustness, and the need for careful design.
Evaluation - Measuring Your Agent's Performance
3 chapters
Evaluation - Measuring Your Agent's Performance
Setting Goals and Success Criteria
Teaches how to define what a 'successful' outcome looks like for an agent, encouraging clear, measurable goals like accuracy, task completion rate, or user satisfaction.
Testing the Agent with Examples
Covers creating and using test cases to evaluate the agent, showing how to build scenario tests and track performance over time.
Continuous Feedback and Improvement
Emphasizes that evaluation is an ongoing process, introducing the concept of a feedback loop: build → test → learn → improve.
Observability and Debugging - Peering Inside the Agent
3 chapters
Observability and Debugging - Peering Inside the Agent
Adding Logs to the Agent
Shows how to instrument the agent with logging at key points, providing a snippet of code illustrating how to add logging to track the agent's decisions.
Understanding and Debugging Agent Behavior
Teaches how to interpret logs and use them to find problems, outlining a straightforward debugging approach for tracing the agent's line of thought.
Refining the Agent Using Observability
Shows that observability isn't only for finding bugs but also for continuously refining the agent, discovering patterns and making improvements based on observations.
Safety and Governance - Keeping the Agent Aligned
3 chapters
Safety and Governance - Keeping the Agent Aligned
Content Safety and Moderation
Focuses on keeping the agent's outputs safe and benign, describing strategies like filtering responses and training the agent to politely refuse inappropriate requests.
Action Restrictions and Permissions
Deals with controlling what the agent is allowed to do, especially when tools and environment come into play, emphasizing the importance of constraints and sandboxing.
Ethical Guidelines and Human Oversight
Broadens the discussion to governance, explaining how to set ethical guidelines and incorporate human oversight, especially for high-stakes deployments.
Deployment and Operations - From Prototype to Production
3 chapters
Deployment and Operations - From Prototype to Production
Deploying Your AI Agent
Explains the steps to deploy the agent, outlining what deployment means: packaging the code, choosing where it runs, and how users will interact with it.
Monitoring and Reliability
Emphasizes the importance of keeping the agent running and trustworthy, discussing health checks, error handling, and scaling to handle more load.
Maintenance and Updates
Discusses what happens after deployment, giving tips on how to safely update the agent and maintain it over time, including monitoring costs and optimizing the system.
Performance and Cost Optimization - Doing More with Less
3 chapters
Performance and Cost Optimization - Doing More with Less
Speeding Up the Agent
Covers techniques to make the agent respond faster, including using smaller models, limiting response length, and parallelizing operations.
Managing and Reducing Costs
Focuses on the cost aspect, providing tips on batching requests, using caching, and choosing the most cost-effective approach for each part of the agent's workload.
Scaling Up without Breaking the Bank
Talks about maintaining performance and cost-efficiency as usage grows, discussing horizontal scaling, cost control, and optimizing prompts and responses.
Reference
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