Glossary · Cheat sheet

Agentic AI on one page.

What an agent is, when you need one and what keeps it in check. Six blocks to save and pass on, each with a path into the full glossary.

01

What an agent is

  • It is given a goal instead of a sequence of steps.
  • It works in a loop until the goal is reached or a rule stops it.
  • Chatbot answers · copilot suggests · agent executes.
  • The test: who presses “execute”? If the system does it itself, it is an agent.
01Perceive02Reason03Plan04Act05VerifyGOAL
02

Script, RPA or agent?

  • Stable interface, fixed rulesScript or API
  • No interface, the same screens every time, rare exceptionsRPA
  • Many variants, unstructured documents, case-by-case judgementAgent

No agent as long as there are no real cases to test against or nobody owns the exceptions.

03

The building blocks

Model
Understands language, but guarantees nothing.
Context & RAG
Your documents as evidence instead of guesswork.
Tools & MCP
The agent's hands. What does not exist as a tool, it cannot do.
Evals
Quality as a measurement on real cases, not a gut feeling.
04

The governance ring

Identity
One identity per agent, short-lived tokens, never a shared service account.
Policy
Limits live in code and the tool layer, not in the prompt.
Audit
Every decision is logged immutably, with its reasoning.
Oversight
Exceptions land in a queue with an SLA; every agent has a stop switch.
Agentown identityPolicy≤ €10,000 autonomous€12,400 › limitOversightqueue · SLA 4 h✓ approvedPostingERP · payables✓ postedAUDIT LOG14:02:07Invoice RE-2231 detected · €12,40014:02:08Policy: €10,000 limit exceeded14:02:08To payables queue · SLA 4 h14:31:55Approved and postedAgentown identityPolicy≤ €10,000 autonomous€12,400 › limitOversightqueue · SLA 4 h✓ approvedPostingERP · payables✓ postedAUDIT LOGInvoice RE-2231 detected · €12,400Policy: €10,000 limit exceededTo payables queue · SLA 4 hApproved and posted
05

Autonomy in levels

  1. L0Manual work
  2. L1RPA: fixed scripts
  3. L2ML inside the flow
  4. L3Agent proposes, a human confirms
  5. L4Agent acts within limits, humans step in on exceptions

Move up a level only when evals, the audit trail and the exception rate justify it.

06

EU AI Act: where agents sit

  1. Prohibited
  2. High-risk
  3. Transparency obligations
  4. Minimal risk

Most back-office agents sit in the lower two tiers. They move up as soon as their decisions directly affect people: pre-screening job applications is high-risk.

  1. since 2 Aug 2026Article 50 transparency obligations
  2. 2 Dec 2026End of the marking grace period
  3. 2 Dec 2027High-risk under Annex III
  4. 2 Aug 2028High-risk under Annex I

Reflects the Digital Omnibus; not legal advice.