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Agent Builder

Glossary

AI agent glossary

95 essential terms for working with and building AI agents, explained in plain English and linked to the lessons that go deeper.

A

Agent harness

The software wrapped around a language model that runs the agent loop, supplies tools, manages context, and enforces permissions.

Agent hooks

Your own scripts that an agent harness runs automatically at set points, such as before a tool call or when the agent finishes, to check or act.

Agent loop

The repeating cycle at the heart of every AI agent: the model picks an action, a tool runs it, and the result is fed back until the task is done.

Agent memory

Any mechanism that lets an agent keep useful information beyond a single conversation, such as notes files, databases, or retrieved past sessions.

Agent SDK

A software library that packages the agent loop, tool handling, and common features so you can build agents without writing that plumbing yourself.

Agent skills

Reusable folders of instructions, scripts, and reference files that an agent loads only when a task calls for them.

Agent2Agent (A2A) protocol

An open protocol that lets AI agents built by different vendors discover each other, exchange messages, and delegate tasks across systems.

Agentic AI

AI systems that pursue goals by planning and taking actions with tools over multiple steps, rather than just answering a single prompt.

Agentic coding

Writing software by delegating multi-step tasks to a coding agent that reads files, edits code, and runs commands, while you direct and review.

AGENTS.md and CLAUDE.md

Plain markdown files in a project that coding agents read automatically to learn its conventions, commands, and rules.

AI agent

A system where a language model works toward a goal by deciding which actions to take, using tools, and checking results in a loop.

Autonomous agent

An agent that carries out a task from start to finish with little or no human input along the way.

B

C

Chain of thought

Having a model reason step by step in writing before giving its answer, which tends to improve results on multi-step problems.

Chunking

Splitting long documents into smaller passages before embedding and indexing them, so retrieval can return just the relevant parts.

Claude Agent SDK

Anthropic's library for building agents on the same foundation that powers Claude Code, available for TypeScript and Python.

Claude Code

Anthropic's agentic coding tool that reads your codebase, edits files, runs commands, and completes programming tasks from natural-language requests.

Coding agent

An AI agent specialized for software work: it reads code, edits files, runs commands and tests, and iterates until a programming task is done.

Compaction

Summarizing the older parts of a long agent conversation so the work can continue without overflowing the context window.

Computer use

The ability of a model to operate a computer like a person does, by looking at screenshots and sending mouse clicks and keystrokes.

Context engineering

The practice of deciding exactly what information goes into a model's context window at each step so an agent has what it needs and nothing that distracts it.

Context rot

The tendency of a model's accuracy and instruction-following to degrade as its context fills with more tokens, even well below the window limit.

Context window

The maximum amount of text, measured in tokens, that a model can consider at once, including instructions, conversation history, and tool results.

Cost per task

The total spend, mainly model tokens plus tool and infrastructure costs, needed for an agent to complete one unit of useful work.

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Max tokens

A request parameter that caps how many tokens the model may generate in one response; it limits output length, not the size of the input.

MCP client

The part of an AI application that connects to MCP servers, discovers their tools and resources, and passes them to the model.

MCP Inspector

An official developer tool for testing and debugging MCP servers in a browser, letting you list and call tools, resources, and prompts by hand.

MCP resources

Read-only data an MCP server exposes, such as files, records, or documents, each identified by a URI and supplied to the model as context.

MCP server

A program that exposes tools, data, or prompts to AI applications through the Model Context Protocol, so any compatible agent can use them.

MCP transport (stdio and Streamable HTTP)

How an MCP client and server exchange messages: stdio for local servers launched as a subprocess, or Streamable HTTP for remote servers.

Message roles (system, user, assistant)

The labels that mark who said each part of a conversation sent to a model: system instructions, the user, or the assistant itself.

Model Context Protocol (MCP)

An open standard for connecting AI applications to external tools and data, so one integration works across many different agents.

Model routing

Sending each request or step to the model best suited to it, such as a fast, cheap model for simple work and a more capable one for hard problems.

Multi-agent system

An application where several AI agents, each with its own instructions, tools, or context, work together to complete a larger task.

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