Back to insights
Insight

Agentic Systems Are a Loop, Not a Model

Most conversations about Agentic AI start with the model. From a solution architect's point of view, that is the wrong starting point. The unit of design is the loop the model sits inside.

A closed loop of tactile geometric components, with one Persimmon element marking the point where a decision is made

Most conversations about Agentic AI start with the model. Which one, which provider, how large the context window should be.

From a solution architect's point of view, that is the wrong starting point.

What actually changes

Traditional software follows a path we define in advance. An AI assistant can recommend the next step, but the decision stays with the person reading the recommendation. An agentic system goes further: it can interpret a goal, choose an action, use a tool, inspect the result, and adjust its approach.

That changes an important architectural assumption. We are no longer designing only for request and response. We are designing a loop:

Goal → Context → Decision → Action → Feedback

Each stage in that loop is a design surface with its own failure modes. Context can be incomplete or stale. A decision can be reasonable given bad inputs. An action can succeed technically while being wrong in effect. Feedback can be missing entirely, which worries me most. A loop that cannot observe its own results is not a loop; it is a sequence of hopeful steps.

The failure I see discussed least is the last one. Teams invest heavily in the decision stage, because that is the part that feels like intelligence, and then wire the action stage straight to a real system with no meaningful observation of what happened next. The agent reports success because the call returned without an error. Whether the work actually moved toward the goal is a separate question, and often nobody is asking it.

A loop that cannot evaluate its own output is not really closed. It is an open-ended sequence of actions with a confident narrator.

The model is one component

A capable model without the right context, permissions, tools, evaluation, and escalation paths does not make a capable system. It simply introduces a wider range of possible outcomes.

This is worth sitting with, because it inverts how most teams budget their attention. The model is the part that is easiest to change and easiest to talk about. The context you assemble, the tools you expose, the permissions you grant, and the evidence you collect about behavior are all harder, slower, and more specific to your organization. They are also what determines whether the system is dependable.

Swapping the model is a weekend. Building the loop around it is the project.

More autonomy is not better architecture

There is a quiet assumption that autonomy is a ladder, and that a more autonomous system is a more advanced one. I do not think that holds.

The real design question is where autonomy creates value, where a deterministic workflow remains the better choice, and where a human should stay in the loop. Those are three different answers, and a serious system usually contains all three.

The question I ask about any individual step is narrow on purpose: can the correct next action be determined in advance?

If it can, a condition in code is cheaper, faster, easier to test, and easier to explain to an auditor. If it cannot, if the right next step genuinely depends on context that only exists at runtime, and encoding every branch would make the workflow progressively more brittle, that is the point where agency starts to earn its cost.

My default is to start deterministic and introduce agency only where the fixed path stops being useful. That is a bias, not a rule, and it is worth stating plainly because the industry default currently runs the other way.

Where the potential actually sits

This is where I believe much of AI's untapped potential sits today. Not in producing another answer, summary, or suggestion, but in helping software take carefully bounded responsibility for moving work toward an outcome.

The word bounded is doing most of the work in that sentence. Responsibility without boundaries is not delegation, it is abdication. The boundaries are the architecture.

In the posts that follow I want to work through how these systems are designed in practice: context, tool use, and orchestration, then memory, evaluation, guardrails, cost, and reliability.