An AI agent is software that uses an artificial intelligence model, usually a large language model, to work towards a goal. Rather than only answering a question, it can decide on steps, use connected tools and systems, and carry out multi-step tasks with some independence.
An agent typically combines a language model for reasoning, instructions that define its role and limits, access to tools such as databases, APIs, email or calendars, and some memory of the task. It loops: it considers the goal, chooses an action, calls a tool, reads the result and continues until finished or until it needs a person. Retrieval of company documents helps it give grounded answers.
Retailers and hospitality operators use agents for customer enquiries, order status checks, product recommendations, drafting responses, reporting and routine back-office work such as reconciling data between systems. Connecting an agent to POS and inventory data lets it answer using current facts.
Reliability and control are the main concerns. Models can produce confident but wrong answers, so agents need accurate source data, narrow permissions and sensible limits on what they can change. High-impact actions such as refunds or price changes should have human approval, and activity should be logged. Privacy obligations apply when customer data is involved, and testing with realistic scenarios is essential before launch.
AI agents matter because they can take on repetitive work and give customers faster answers at any hour, freeing staff for more valuable tasks. RetailCare builds AI agents that connect to retail systems.