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Video transcript

AI agents are the new apps, and we expect soon for there to be thousands of agents available. So I think we're going to live in a world where there are going to be hundreds of millions of billions of different AI agents, eventually probably more AI agents than there are people in the world. For the very first time, this is going to be an industry of skills and you capture that phrase and you call it agents.

But it's going to be for the very first time agents sitting on top of tools. If you're here, it's probably because you've been hearing a lot about AI agents lately. Maybe you've even checked out some other videos that got way too technical, and you thought, why don't you explain this to me like I'm a five year old? Well, guess what? That's exactly what I'm going to do.

I'm going to give you the most straightforward real world explanation of what an AI agent is. You probably already know that AI stands for artificial intelligence. But here's where it gets interesting.

AI by itself is like raw brain power. It's got all this potential, but it's not really useful until you give it a job. Enter the AI agent.

Think of AI as the genius with a million ideas, and the AI agent is the one who actually gets stuff done. While AI is all about smarts, an AI agent is the practical hands-on version. It's like giving the genius a task and saying, now go do something useful with all that brain power.

The AI agent takes the intelligence of AI and turns it into action, whether it's answering your questions, automating your work, or handling your to-do list. It's the difference between knowing how to do something and actually doing it. So while AI is the brains, the AI agent is the one rolling up its sleeves and making things happen.

Here is the one, two, three of AI agents. Number one, they can understand. AI agents listen to what you're asking or needy.

Number two, they can think. They process this information and figure out the best way to help you. And number three, they can act.

And finally, they deliver what you need, whether it's an answer, a solution, or help completing a task. Now, how do they work? Imagine your parents are heading out for the evening and leaving the babysitter in charge. Remember, you're only five.

They don't just walk out the door. They give the babysitter instructions, what time you need to go to bed, what you can have for a snack, and what to do in case of an emergency. That's exactly how AI agents are trained.

Developers provide these agents with detailed instructions using data and prompts so they know exactly how to respond in different situations. Some agents come pre-programmed with basic instructions like a babysitter who's already experienced. Other AI agents can be customized to fit your needs, like giving the babysitter special rules for kids.

Once set up, these AI agents handle tasks just as smoothly as a well-informed babysitter, freeing you up to focus on other things. So what does an AI agent actually look like? When we talk about what an AI agent looks like, it's helpful to think of it as a combination of two things, an interface and a workflow. The interface is how you interact with the AI agent, maybe through a chat window, a voice assistant, or even a button on a website.

But behind that interface is where the real magic happens, and that's the workflow. Imagine a flowchart. You ask the AI agent a question or give it a command through the interface.

That's the starting point. From there, the AI agent follows a series of steps or nodes in a workflow. These nodes could involve accessing information from a database, making a decision based on what it finds, or even performing a task like sending an email.

The nodes in this workflow might change depending on what you ask or what the AI agent needs to do next. But it's all behind the scenes. So while you only see the interface, what's really happening is that the AI agent is working through a whole process to get you the best results.

Now here's a simple four-step explanation of that process. The first is the input. You ask a question or give a command.

The second is processing. The AI agent thinks about what you've asked and searches for the best way to respond. Number three is action.

The AI agent gives you an answer, finds information, or performs a task. And fourth is learning. The more you use it, the bigger its knowledge base becomes and the smarter it gets.

Learning from past interactions to improve. So why is it important? AI agents are about to trigger a seismic shift in how we live and work, especially for local businesses. Imagine AI handling routine tasks like appointment booking and customer support, freeing business owners to focus on growth and innovation.

This isn't just like another tech upgrade. It's likely the biggest transformation we'll see in our lifetime. Now if you're a local business, here are the main types of AI agents that make sense for small and medium-sized businesses to use.

The first are goal-based agents. As the name suggests, these AI employees are designed to achieve specific goals based on individual contexts and frameworks. While that sounds simple, make no mistake, these are highly advanced agents.

They leverage tons of data, machine learning, natural language processing, for use cases including customer and prospect communications and conversations. The second are utility agents. These AI employees can form the backbone of key business activities and operations like analysts and managers at bigger companies.

For example, these agents can analyze competitor prices and adjust pricing to maximize revenue. Or they can optimize staff schedules based on labor costs, customer demand, and employee preferences. The third and the most powerful is the autonomous AI employee.

This agent has a high degree of autonomy and can independently break down tasks, set sub-goals, and learn from their experiences to achieve their primary objective. They're like having the perfect business process consultant who can work out everything you need to do in order to execute an activity or strategy. There are a couple of other types of agents as well, but these are often a smaller but still very important cog in the AI wheel.

You've got your simple reflex agents. These are the most basic. They react to their environment without thinking about the past or future.

Think of a thermostat turning on or off based on the current temperature. Next you've got model-based reflex agents. These agents have a bit more smarts.

They can remember things about the past to help them decide what to do now. So imagine a robot that remembers it was cold yesterday, so it might turn on the heat a bit earlier today. Then you've got learning agents.

These are more advanced. They can learn from their mistakes and get better over time. Think of a robot that learns to play chess better the more it plays.

The businesses who embrace AI agents now will have a major advantage while those who don't risk being left behind in a rapidly changing world. In short, AI agents are set to revolutionize how work gets done and the impact will be massive. As the CEO of NVIDIA said, the world is in the midst of its third industrial revolution thanks to AI.

In the same way as mass manufacturing and the internet have changed the way we all live and work, AI is the next frontier of opportunity for local businesses and how they interact with customers. And AI employees will be a central part of how this revolution will pan out because they offer everything from improved productivity, being able to do those high value tasks in mere seconds and reduce costs, thereby giving local businesses a competitive edge and informed decision making prowess based on machine learning and real-time data. I hope this video helped you learn the basics of AI in a way that's easy to understand.

And if you run a local business and want to find out more on how AI can help your business with things like customer service, appointment booking and sales, check out this second link in the description. So there you have it. An AI agent is a smart digital assistant that understands, thinks and acts to help you get things done, whether at home or work.

And remember, this is just the beginning. These AI agents are going to be everywhere soon, making life easier in ways we're just starting to imagine. So make sure you don't get left behind.

Thanks for watching and I will see you in one of the next videos that should pop up right about now.

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