What Are AI Agents? An Introductory Guide for Beginners
Explore the basics of AI agents and how they’re transforming industries with their autonomy and intelligence. Learn from Mayfly Ventures how to turn your AI ideas into reality.
If 2025 is the year the AI agent revolution begins, now is the perfect time to understand what AI agents are, how they work, and why they’re poised to reshape industries. In this beginner-friendly guide, we’ll explore the fundamentals of AI agents and why experts like Bill Gates and Mark Zuckerberg believe they represent the next big wave in computing.
What Exactly Is an AI Agent?
At its core, an AI agent is a software program designed to perform tasks autonomously, much like a capable assistant who listens, learns, and executes. Unlike traditional software that requires manual input for every step, AI agents take initiative—they set goals, learn from interactions, and improve over time.
Think of them as digital teammates, not just tools. For example:
- A customer service AI agent could resolve queries without human intervention.
- A marketing AI agent might proactively identify leads, draft outreach emails, and even schedule follow-ups.
The key difference between AI agents and traditional software lies in autonomy. AI agents don’t just answer questions or follow pre-set rules; they proactively act, adapting and improving as they go.
AI Agents vs. ChatGPT: What’s the Difference?
It’s easy to confuse AI agents with conversational tools like ChatGPT, but they’re not the same.
- ChatGPT: A conversational AI model that answers questions and generates content based on prompts.
- AI Agents: Goal-driven systems that use AI models like ChatGPT as a foundation but extend their capabilities to interact with tools, automate workflows, and achieve specific objectives.
For example, imagine a sales AI agent. It won’t just answer your questions about a product—it will actively reach out to prospects, book meetings, and prepare follow-up emails, all without waiting for your input.
Why AI Agents Are a Big Deal
AI agents represent the next evolution of software. In the 2000s, SaaS platforms like HubSpot and Salesforce revolutionized how businesses operated. Now, AI agents promise to go even further by not just powering software but actively replacing repetitive human tasks.
Mark Zuckerberg put it best:
“We’re going to live in a world where there are hundreds of billions of AI agents. Eventually, there will be more AI agents than people.”
The potential is staggering. Imagine industries like healthcare, hospitality, or construction using AI agents to handle routine tasks, freeing humans to focus on creativity, strategy, and problem-solving.
The Rise of Vertical AI Agents
While some AI agents (like ChatGPT) are general-purpose, the real magic happens with vertical AI agents—specialized agents designed for specific industries or business functions.
For example:
- HR Tech: Fairgo, an Australian startup, has built an AI agent that handles job applications, screening, and recommendations, streamlining the hiring process.
- Finance: Brico automates the complex process of licensing applications for fintech companies.
- Hospitality: Relevance AI’s Bosh handles customer research and outreach for hospitality businesses.
Vertical AI agents are tailored to solve industry-specific pain points, combining domain expertise with cutting-edge AI technology.
How AI Agents Work
AI agents rely on several key technologies:
- Language Models (LLMs): The brain behind an AI agent, enabling it to understand and generate natural language. Popular options include OpenAI’s GPT models, Microsoft Azure OpenAI, and Google Bard.
- Integrations: AI agents connect to other software tools (e.g., email, CRM systems, or accounting software) to perform tasks.
- Training Data: The agent learns from domain-specific data, allowing it to excel in its specialized role.
- Reinforcement Learning: Over time, the agent improves through feedback and interaction.
These components work together to create systems that are both adaptable and intelligent.
Are AI Agents Replacing SaaS?
In many ways, yes—and no. AI agents can be packaged as SaaS products, but they go beyond the traditional SaaS model. While SaaS provides tools for people to use, AI agents replace the need for people to interact with those tools altogether.
As YC Partner Diana Hu explains:
“The argument is that with AI agents, you don’t just replace the software—it’s going to eat the payroll.”
How to Build an AI Agent
Building an AI agent is more accessible than you might think. Thanks to no-code and low-code platforms, you don’t need a team of engineers or a huge budget to get started.
- Define the Problem: Identify inefficiencies or repetitive tasks in your industry that an AI agent could solve.
- Choose a Language Model: Select a foundational model like ChatGPT, Bard, or Azure OpenAI, depending on your needs.
- Decide on Your Development Approach:
- Use no-code tools like Bubble.io or Flutterflow for quick and cost-effective builds.
- Opt for custom development for complex, scalable agents.
At Mayfly Ventures, we specialize in helping founders use no-code tools and AI frameworks to build high-performing AI agents quickly and affordably.
The Future of AI Agents
AI agents are poised to transform industries by automating tasks, improving efficiency, and enabling entirely new ways of working. From startups to enterprise businesses, the opportunities are endless.
If you’ve spotted an inefficiency in your industry, now is the time to act. AI agents aren’t just the future—they’re happening right now.
Do you have an idea for an AI agent? Let’s bring it to life together. Book a call with Mayfly Ventures today.
Co-building disruptive AI Agents with industry insiders
AI Agents are set to completely overhaul how industries operate, creating efficiency unlocks well beyond using ChatGPT. We combine our deep expertise in building disruptive AI Agent ventures with industry insiders who see opportunity.
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Vertical AI Agents Could Be 10X Bigger Than SaaS
In the 1980s and 90s, boxed software became a popular way to distribute software, whether it was gaming software, multimedia applications, or office tools. Companies like Microsoft, Adobe, and Corel rose significantly on the back of selling boxed software to millions of consumers and businesses.
In the 2000s, cloud computing and SaaS began their meteoric rise. Digital downloads, cloud-based storage, and computing simplified the process of purchasing and using software. No longer was there a need to buy a physical CD-ROM or transfer files via USB—you could access software within a few clicks.
Microsoft Office 365, for example, eliminated the need for local installation, while companies like Hubspot, Zendesk, Atlassian, and Adobe Creative Cloud revolutionized their respective industries. Today, there are approximately 337 SaaS unicorns, and this number is rapidly growing.
The next major evolution of software is AI Agents which essentially allows companies to have the software and for the software to run itself. This will provide immense time and cost savings for companies which is why many are excited about the AI Agent future.
Mark Zuckerberg,
Facebook
"I think we're going to live in a world where there are 100's of billions of AI agents. Eventually there will be more AI agents than people in the world."
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Diana Hu, YC Partner
"The bull case for AI agents to be bigger than Saas, is SaaS still needs people to operate the software. The argument here is with AI agents you don't just need to replace the software, it's going to eat the payroll."
Satya Nadella,
Microsoft CEO
"AI agents will become the primary way we interact with computers in the future. They will be able to understand our needs and preferences, and proactively help us with tasks and decision making."
Bill Gates,
Microsoft
"Agents are not only going to change how everyone interacts with computers. They’re also going to upend the software industry, bringing about the biggest revolution in computing since we went from typing commands to tapping on icons."
Jared Friedman,
YC Partner
"Vertical AI Agents Could Be 10X Bigger Than SaaS. Every SaaS company build some software which a group of people use. The vertical AI equivalent will be the software plus the people."
Dhamesh Shah,
Hubspot CTO
"Last year was all about chat. The way the world looks soon is that we will have hybrid teams that consists of humans and consists of AI agents."
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