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Shruthi Chikkela
Shruthi Chikkela

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Understanding Agentic AI: How Modern Systems Make Autonomous Decisions

What Is Agentic AI? A Practical, Real‑World Introduction for Developers

If you are a developer, DevOps engineer, or cloud professional, chances are you’ve already built systems that behave a little like agents — you just didn’t call them that.

Agentic AI is not science fiction, not sentient machines, and not a replacement for engineering discipline. It is simply software that can decide what to do next in order to achieve a goal.

In this post, we’ll break down Agentic AI from first principles — clearly, realistically, and without hype — using examples that make sense for real production systems.

This article is written for:

  • Beginners who are new to AI concepts
  • Experienced engineers who want architectural clarity
  • DevOps / Cloud engineers thinking about real automation

Why Agentic AI Is Suddenly Everywhere

Over the last decade, software evolved like this:

  • Manual operations → humans run commands
  • Automation → scripts and pipelines
  • Intelligent automation → systems that decide what to do

Agentic AI sits in that third category.

Traditional automation breaks when the situation is slightly different from what you planned for. Agentic AI exists because modern systems are:

  • distributed
  • noisy
  • constantly changing

Static rules are no longer enough.


A Simple Definition You Can Remember

Agentic AI is software that can pursue a goal by observing its environment, reasoning about next steps, taking actions via tools, and learning from the outcome.

This definition matters because it removes confusion.

Agentic AI is not:

  • a chatbot
  • a single ML model
  • a magical “thinking” machine

It is:

  • goal‑driven
  • action‑oriented
  • feedback‑based

A DevOps Analogy (No AI Required)

Imagine a classic on‑call scenario.

A service goes down at 2 a.m.

Traditional system:

  • Alert fires
  • Engineer logs in
  • Checks dashboards
  • Runs commands
  • Applies fix

Now imagine a system that:

  • Detects the alert
  • Checks logs and metrics
  • Identifies likely causes
  • Chooses a remediation
  • Applies it
  • Verifies recovery
  • Notifies the engineer

That system is behaving like an agent.

The difference is not intelligence — it’s decision‑making autonomy.


The Core Loop of Every Agentic System

All agentic systems follow the same basic loop:

Observe → Reason → Act → Reflect
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This is extremely important.

If a system cannot reflect on the outcome of its actions, it is not agentic — it is just automation.


Breaking Down the Core Components

Let’s translate Agentic AI into engineering concepts.

1. Goal

Everything starts with a goal, not a command.

  • ❌ “Restart the service”
  • ✅ “Restore system availability with minimal risk”

Goals allow flexibility. Commands do not.


2. Observation

Agents observe state using:

  • logs
  • metrics
  • traces
  • APIs

This is no different from what humans do — it’s just automated.


3. Reasoning

Reasoning is structured decision‑making, not consciousness.

Examples:

  • Should I scale or restart?
  • Did the last action improve the metric?
  • Is this failure repeating?

Think of reasoning as a dynamic runbook.


4. Tools

Agents do not magically change systems.

They use tools such as:

  • Azure CLI
  • Kubernetes API
  • Terraform
  • REST APIs
  • Internal scripts

Without tools, an agent is just a chatbot.


5. Memory

Memory allows agents to avoid repeating mistakes.

Examples:

  • “Restarting didn’t help last time”
  • “This alert usually resolves after scaling”

Memory can be:

  • short‑term (current task)
  • long‑term (historical patterns)

Agentic AI vs Traditional Automation

Automation Agentic AI
Fixed rules Adaptive decisions
Linear flow Dynamic paths
Breaks on edge cases Handles uncertainty
Needs frequent updates Learns via feedback

If automation is a script, agentic AI is a decision engine.


Real‑World Use Cases (No Hype)

1. Cloud Incident Response

Goal: Restore service reliability

Agent actions:

  • Analyze metrics
  • Identify anomaly
  • Choose remediation
  • Verify success
  • Escalate if needed

Humans stay in control — agents handle speed.


2. Cost Optimization in Azure

Goal: Reduce cloud spend without impacting SLAs

Agent behavior:

  • Detect underutilized resources
  • Propose rightsizing
  • Apply changes during safe windows
  • Roll back if metrics degrade

This is not guessing — it’s controlled decision‑making.


3. Security Triage

Goal: Reduce alert fatigue

Agent behavior:

  • Correlate alerts
  • Classify severity
  • Enrich context
  • Escalate only real threats

Where Agentic AI Makes Sense

Agentic AI is a good fit when:

  • Tasks are multi‑step
  • Environments are dynamic
  • Rules can’t cover all cases
  • Feedback matters

Perfect domains:

  • DevOps & SRE
  • Cloud operations
  • IT automation
  • Research workflows

Where It Does NOT Belong

Agentic AI is not suitable for:

  • Simple CRUD apps
  • Deterministic workflows
  • Compliance‑critical steps without oversight

If a script works reliably — use the script.


Advantages (When Done Right)

  • Faster response times
  • Reduced cognitive load
  • Better handling of edge cases
  • Scales decision‑making

Disadvantages (Be Honest)

  • Higher complexity
  • Harder debugging
  • Increased cost
  • Security risks

Agentic AI without guardrails is dangerous.


A Realistic Take

Agentic AI is engineering, not magic.

The best systems:

  • limit autonomy
  • log every decision
  • keep humans in the loop
  • fail safely

If you already design distributed systems, you already think like an agent architect.


Closing Thoughts

Agentic AI represents a shift from telling software what to do to letting software decide how to achieve outcomes.

That shift requires responsibility, observability, and strong engineering discipline.


💬 Discussion

If you were to introduce an agent into your current DevOps or cloud workflow:

  • What decision would you automate first?
  • Where would you keep human approval mandatory?

Follow for Day 2: Agentic AI vs Chatbots vs AI Assistants

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