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Agency

As explained in AI Agents in Action, Second Edition

Agency is the capacity to perceive, decide, and act with some degree of autonomy in pursuit of a goal.

Agency is the ability to perceive a situation, decide what to do, and act with some autonomy toward a goal. A prompt-only assistant can produce a response and stop. An agent can instead work through multiple steps, using each result to choose its next action. The distinction is what the system can decide and do over time, not whether it ever asks permission. section 1.1 section 3.2.4

A useful mental model is the sense–plan–act–learn cycle:

  • Sense: receive a goal, context, or feedback. section 1.1.2
  • Plan: decide which tasks and tools the goal requires. section 1.1.2
  • Act: execute a tool for the current task. section 1.1.2
  • Learn: inspect the result, then decide whether to stop or continue. A tool’s output may feed the next call. section 1.1.2
Table 1.2 Example goals, and the tasks and tools needed to carry them out

Goals

Tasks

Tools

Create an image

Create an image

create_image

Travel to Calgary (YYC)

Search for flights

Book flights

Book hotels

Book transportation

search_flights

book_flights

book_hotels

book_transportation

Buy a computer

Search for computers

Compare features and prices

Order a computer

web_search

web_search

order

Compare an image request with travel booking or computer buying: a larger goal calls for several tasks and different tools, rather than one response. section 1.1.2

From prompt step to agent

A research planner that only generates a plan is a prompt step, even if its output is useful. Giving it a curated set of tools lets it decide when and where to act. Tracing tool calls can then reveal its decision path; typed output schemas help keep results inspectable. section 2.4 section 2.6

More agency also creates more ways for an error to propagate: one poor tool choice can affect later steps. Start with the least autonomy the goal needs. Limit available tools, validate outputs, cap action budgets, and require a human checkpoint for irreversible actions. Loosen those boundaries only as the agent demonstrates reliable behavior; higher-stakes work warrants tighter limits. section 3.2.4 section 4.1.3

How AI Agents in Action, Second Edition covers it

How deep it goes
Defines agency operationally and develops its decision loop, tool use, and safety boundaries without pursuing philosophical criteria for intention.
Examples
Maps image creation, travel booking, and computer buying to tasks and tools, then contrasts a prompt-only research planner with tool use.
What it assumes
Introduces the agent–assistant distinction from a plain-language definition rather than assuming familiarity with agent architectures.
What you can do after
Evaluate/understand it by identifying when multistep tool decisions warrant autonomy and where validation, budgets, or approval should constrain it.
How it connects
Connects agency to sense–plan–act–learn, tool chaining, prompt chaining, and human-in-the-loop controls.

Also explained in

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Related concepts

This explainer was generated by Manning's knowledge graph from the text of AI Agents in Action, Second Edition. The section links point to the parts of the book it draws on.