Core Agent Capabilities

Explore what modern AI agents can do: from tool use to complex reasoning

Key Takeaways

Let's distill everything we've learned about agent capabilities into actionable insights you can apply immediately.

💎 Five Core Insights

1. Capabilities Compound

An agent missing even one core capability (reasoning, tool use, memory, planning) will fail complex tasks. Don't think of capabilities as optional—think of them as compounding multipliers.

2. Constraints Are Features, Not Bugs

The 90-95% accuracy ceiling, context windows, and cost limits aren't problems to solve—they're reality to design around. The best systems embrace constraints from day one.

3. Scope Before Scale

Don't build a general-purpose agent. Start with the minimum viable capability set for your specific use case. GitHub Copilot succeeds by staying in its lane—code completion, not architecture.

4. Guardrails > Capabilities

Limiting what agents can do is more important than expanding what they can do. Max iterations, read-only tools, confidence thresholds, and human escalation prevent catastrophic failures.

5. Fallbacks Are Mandatory

Every capability will fail. Plan for it. Human escalation, graceful degradation, clear error messages, and logging aren't nice-to-haves—they're requirements for production systems.

� Capability Cheat Sheet

Quick reference for designing around capability constraints

CapabilityBest ForWatch Out ForDesign Pattern
🧠 ReasoningMulti-step logic, synthesisHallucination, no common senseChain-of-Thought, validate outputs
🛠️ Tool UseAPI calls, data retrievalTool overload, unclear docsLimit count, crystal-clear descriptions
💾 MemoryContext, history, knowledgeContext window limits, retrieval accuracyRAG, summarization, hybrid approach
📋 PlanningMulti-step executionInfinite loops, short horizonMax iterations, exit conditions, ReAct

🚀 Quick Start: Building Your First Agent

1
Define Success Criteria

What accuracy do you need? What latency is acceptable? What's your cost budget?

2
Start Minimal

Begin with reasoning only. Add tool use if needed. Add memory if context matters. Add planning only for complex workflows.

3
Build Guardrails First

Max iterations, timeouts, cost limits, confidence thresholds. Constraints prevent disasters.

4
Test Against Failures

Don't just test happy paths. What happens when the LLM hallucinates? When tools fail? When memory fills up?

5
Iterate Based on Real Usage

Log everything. Where do agents fail? What capability is the bottleneck? Adjust constraints based on data, not intuition.

📚 Continue Learning

Next Module

Explore Current Limitations to deepen your understanding of agent systems.

Go to Current Limitations
Practice

Apply what you've learned by building your own capability-aware agent system.

• Start with a simple use case
• Add capabilities incrementally
• Test against edge cases

🎓 Final Thought

Understanding agent capabilities isn't about memorizing what's possible—it's about developing intuition for what's reliable. The difference between a prototype and a production system is respecting constraints. Build agents that work with their limitations, not against them.