AI & Copilot

What is an AI agent — and how is it different from a chatbot?

“AI agents” are everywhere right now. Here’s what they actually are, in plain English, and why they’re more than a chatbot.

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Quick answer

An AI agent is software that can carry out tasks for you, not just answer questions. Where a chatbot replies with text, an agent can take actions — look things up, update systems, send a reply, or follow a multi-step process — often with little or no human involvement. In a business, agents can handle things like answering common customer or staff questions, triaging support requests, processing invoices, or helping onboard a new starter. The key difference from a chatbot is that an agent does the work, not just talks about it.

The difference

Chatbot vs assistant vs agent

What it does
ChatbotAnswers questions with text
Assistant (e.g. Copilot)Helps you do a task — you stay in control
AI agentCarries out a task or process itself, taking actions on your behalf

What they can do

Real business examples

Agents are at their best on repetitive, rules-based tasks: answering the same HR or IT questions, triaging and routing enquiries, chasing missing information, drafting and filing routine documents, or walking a new starter through onboarding. They work by combining a goal, access to your knowledge and systems, and the ability to take defined actions.

The important bit

Guardrails matter

Because agents act, not just chat, they need proper guardrails: tight control over what data and systems they can touch, human oversight for anything sensitive, and good security underneath. Get that right and they’re powerful; get it wrong and they’re a risk. That’s why we build them with AI security and governance from the start. Ready to build one? See how to build AI agents for your business.

FAQs

Common questions

What is an AI agent?
An AI agent is software that carries out tasks for you — taking actions and following processes — rather than only answering questions like a chatbot.
How is an AI agent different from a chatbot?
A chatbot replies with text; an agent actually does the work — looking things up, updating systems, following a multi-step process — often with little human involvement.
What can AI agents do for a business?
Handle repetitive, rules-based tasks: answering common questions, triaging enquiries, processing invoices, chasing information, and helping onboard new starters.
Are AI agents safe to use in business?
They can be, with the right guardrails — tight control over what data and systems they can access, human oversight for sensitive actions, and solid security underneath.
How do I get started with AI agents?
Start with one clear, repetitive task and build a simple agent for it using low-code tools like Copilot Studio. See our guide to building AI agents for your business.

Curious what an agent could take off your plate?

We’ll help you spot the right first use case and build it safely. Talk to us about AI & automation.