cd /news/artificial-intelligence/ai-agents-explained-the-thought-acti… · home topics artificial-intelligence article
[ARTICLE · art-34670] src=dev.to ↗ pub= topic=artificial-intelligence verified=true sentiment=· neutral

AI Agents Explained: the Thought-Action-Observation Loop

An engineer demonstrates how AI agents use a Thought-Action-Observation loop to solve multi-step tasks by calling tools like calculators and search. The agent iterates until completion, with each real observation fed back into context to guide subsequent decisions. The implementation includes safety measures such as iteration caps and input validation.

read1 min views1 publishedJun 20, 2026

A chatbot answers in one shot. An AI agent runs in a loop, uses tools, and acts — Thought → Action → Observation → repeat — until the job's done. Watch one solve a multi-step task by calling a calculator and a search.

🤖 Run the agent: https://dev48v.infy.uk/ai/days/day11-agents.html

You describe tools to the model (name, purpose, arguments). It can't divide big numbers reliably or know today's data — but it CAN decide "call the calculator with this expression". Tools cover the model's weak spots.

while (true) {
  const step = await llm(history);            // model emits a Thought + Action
  if (step.type === "answer") return step.text;
  const result = tools[step.tool](step.args); // run the tool
  history += `Observation: ${result}`;         // feed the real result back
}

The model writes a Thought (plan), emits an Action (tool + args), your code runs it and returns an Observation, which goes back into context. Then it thinks again.

Each observation is REAL, fed back before the next decision — so it's not guessing the tip amount, it sees 126

from the calculator. And it plans the steps itself: "population of France's capital, doubled" becomes search → then calculator, chained because the model worked out the dependency.

Cap iterations (no infinite loops), validate tool inputs, gate risky actions (email, payments) behind approval. Autonomy is the point; limits make it safe.

Run a task and watch the Thought→Action→Observation trace build.

── more in #artificial-intelligence 4 stories · sorted by recency
sponsored brought to you by zahid.host 4,200+ EU-deployed projects
reading about agents? ship yours in a single git push.

Run your AI side-project on zahid.host

EU-based hosting, git-push deploys, automatic HTTPS, no cold starts. Free tier with a custom domain — perfect for shipping the agent you just read about.

$git push zahid main
Live at https://your-agent.zahid.host
Get free account → Pricing
from €0/mo · no card required
LIVE [news/ai-agents-explained-…] indexed:0 read:1min 2026-06-20 ·