Understanding Tools in Agentic Workflows

In agentic workflows, tools are what allow AI agents to take action, pulling in live data, connecting systems, or triggering real-world tasks. Think of tools as the bridge between your AI and the rest of your software stack.

What Are “Tools” — and What’s an API?

Tools can be anything your agent uses to get work done. Most often, these tools are APIs (Application Programming Interfaces).

APIs are what allow different apps and systems to talk to each other. They let your AI agent do things like:

• Pull customer data from your CRM

• Send a Slack message

• Fetch weather data

• Update a spreadsheet in Airtable

• Make a booking in Calendly

In short, APIs are the “power outlets” AI plugs into to access real-world systems.

How Do AI Agents Use Tools?

AI agents don’t just answer questions — they use tools to act.

Here’s how it works:

• The agent receives a task (e.g., “Get today’s sales data”)

• It chooses the right tool (like the Stripe or Google Sheets API)

• It uses that tool to get the data, format it, and deliver the result

This lets agents move beyond chat and actually do the work, like a digital assistant with access to your systems.

You Already Use Tools & APIs Every Day

Even if you’ve never heard of APIs, you use them constantly.

Here’s how:

• Ordering food on Uber Eats? That’s APIs connecting restaurants, maps, and payment processors.

• Getting a weather forecast on your phone? That’s an API pulling real-time weather data.

• Logging into a site with your Google or Facebook account? Also, an API.

Behind the scenes, these tools are working quietly to connect apps, services, and systems — and now, AI agents are tapping into them to help automate your business.

(Image: This image shows common tools that are used each day to complete tasks. Tools can also be developed custom, such as an internal document summarizer or a legal scanner that identifies identity fraud.)