Lesson 3 of 6

Tools: how an agent gets things done

Tools are the connections that let an agent search, look things up, update records and send messages. Here's how they work, and why permissions matter.

3 min readBy Michael Alos

On its own, an AI model can only produce text. Tools are what let an agent act in the world: look something up, update a record, send a message.

What a tool is

A tool is a connection between the agent and some other system, with a clear description of what it does. For example:

  • Search the web for current information
  • Look up a customer in your CRM
  • Read or add rows in a spreadsheet
  • Check the calendar for free time slots
  • Create a draft email or send a message
  • Create an invoice in your accounting software

How an agent uses tools

The pattern is the same every time:

  1. The agent reads the request and decides a tool would help. "I need this customer's past orders."
  2. It asks to use the tool, with the details needed. "Look up orders for this email address."
  3. The tool does the action and sends the result back.
  4. The agent reads the result and decides what to do next. Use another tool, write an answer, or ask you.

The model never touches your systems directly. It asks, the tool acts, and the result comes back. That separation is what makes it possible to control what an agent can and can't do.

Reading versus doing

Tools fall into two groups, and the difference is important:

  • Read tools look things up: search, check the calendar, read a record. If something goes wrong, nothing changes.
  • Write tools change things: send emails, update records, create invoices, issue refunds. If something goes wrong, it happens for real.

A sensible rule: give agents read access freely, and write access carefully. For anything that reaches a customer or moves money, start with the agent drafting and a person approving.

Connecting tools is getting easier

Not long ago, every tool connection had to be custom built. Today, many apps offer ready-made connections, and a shared standard called the Model Context Protocol (MCP) lets AI tools plug into other software in a consistent way. For a small business, that means more of your existing apps can be connected to AI without custom development.

Try this (5 minutes)

Go back to the multi-step task you wrote down in lesson 1. Next to each step, write:

  • Which app it happens in
  • Whether it reads something or changes something

Circle every step that changes something. Those are the steps where you'd want a person to approve the agent's work, at least at first.

Common mistakes

  • Giving an agent permission to send, delete or pay before it has proven itself on drafts.
  • Connecting every app "just in case" instead of only the tools the job needs.
  • Assuming the agent will always pick the right tool. Test it on real examples.

Check yourself

What is a tool, in the context of an AI agent?

A connection that lets the agent take an action in another system, such as searching, looking up a record or sending a message.

What's the difference between read tools and write tools?

Read tools look things up and change nothing. Write tools change things, like sending emails or updating records.

Where should you start when giving an agent write access?

With the agent drafting and a person approving, especially for anything customer-facing or involving money.

Where could AI give your business the most back?

Answer thirteen questions and get your biggest opportunities ranked, with a rough figure for each. Free, about four minutes, no email required.

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