What is an AI agent?

An AI agent is an artificial intelligence system designed to complete a specific goal or workflow by observing information, reasoning about what to do next, taking action, and evaluating the results. Unlike traditional chatbots powered by large language models (LLMs), AI agents can continuously work toward achieving a goal with minimal human intervention.

AI agents are often specialized for a particular function and can work independently,  alongside humans, or other agents to automate complex workflows.

Example: In accounting, an AI agent can monitor new financial activity, categorize transactions, reconcile accounts, prepare automated schedules, run quality-control checks, and surface exceptions for the accountant's review. Digits uses specialized AI agents, powered by the Agentic General Ledger™ (AGL®), to continuously move accounting work forward while keeping accountants in control of oversight, judgment, and approval.

Related terms: Agentic AI, Agentic Accounting Software, Agentic General Ledger™ (AGL®), Human in the Loop, Trust Layer