
15 May, 2025
How AI Agents Work: Memory, Instructions, and Tools
In Part 1 (Understanding AI Agents, Agentic AI, and Multi-Agent Systems), we introduced what AI agents are and why they matter for small and medium-sized enterprises (SMEs). In this post, we go one level deeper and explore how AI agents actually work — technically and practically — using three fundamental components: memory, instructions, and tools.
