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AI agents

How does the agent loop work?

Put the ingredients together and you get the loop that defines an agent: reason, act, observe, repeat. This cycle is what lets an agent handle open-ended work.

Last updated 2026-06-15 · Physea Labs

Put the ingredients together and you get the loop that defines an agent: reason, act, observe, repeat. The model thinks about the goal and picks a next step. It calls a tool. The result comes back. The model reads that result and decides whether it is done or needs another step. This cycle is what lets an agent handle open-ended work that no single response could finish.