Module 3 of 6 · 35 minutes

Agentic AI products

Agents don't just answer — they act. This module shows product managers how to scope, design, govern and measure AI agents.

Learning objectives

  • Distinguish workflows from agents and choose the simpler option
  • Scope an agent's goal, tools, permissions and stop conditions
  • Set autonomy per tool by risk
  • Define metrics for agent performance

3.1 From features to agents

An AI agent uses a model, tools and a loop to pursue a goal: it decides the next step, calls a tool (search, a database, an email API), looks at the result and continues until it's done or stuck. Anthropic's guidance on building effective agents distinguishes workflows (the steps are fixed in code) from agents (the model chooses the steps), and recommends the simplest option that works.

OpenAI's practical guide to building agents suggests agents fit best where traditional automation struggles: complex judgement calls, rules that are hard to maintain, and heavy use of unstructured information. If a fixed workflow does the job, ship that.

GoalPlan nextstepUse a toolObserveresultDoneStop or escalateto a humangoal metnot yet — looplimit hit / unsure
The agent loop. Product managers define the goal, the tools, and the stop and escalation rules that end the loop safely.

3.2 Scoping an agent like a job description

GoalWhat "done" means, in measurable terms
ToolsExactly which systems it may read and change
PermissionsSpending limits, which records, which customers
Stop conditionsMaximum steps, time or cost; when to give up
EscalationWhen and how to hand over to a person, with context

Start with one agent and a small tool set; add more agents only when one becomes unmanageable.

3.3 Risk-rated tools and autonomy

Tool riskExamplesTypical oversight
ReadSearch knowledge base, look up an orderNone needed beyond access control
Reversible writeDraft a reply, tag a ticket, create a calendar holdAct and notify; easy undo
Irreversible or externalSend an email to a customer, delete recordsHuman approval until quality is proven
Financial or high-stakesIssue refunds, place orders, change contractsApproval above a limit; hard caps always

Autonomy is granted per tool, not for the whole agent. An agent can read freely, draft freely and still need sign-off to send.

Readno approvalReversible writeact and notifyExternal / irreversibleapprove until provenFinancial / high-stakesapprove above limit · hard capshigher potential harm → more human oversight per tool
Risk-rated tools. One agent can read freely, draft freely and still need sign-off before sending or spending.

3.4 Designing trust for agents

  • Show the plan before acting on anything significant, and let users edit it
  • Show progress — which step it's on and what it has found
  • Checkpoints before risky actions, with a clear summary of what will happen
  • An activity log of every action taken, with undo where possible
  • A graceful handover to a human that includes everything the agent learned

3.5 Measuring agents

MetricQuestion it answers
Task success rateHow often does it fully achieve the goal?
Intervention rateHow often must a person step in or correct it?
Cost and steps per taskIs it efficient, or wandering?
Time to completionIs it faster than the human baseline?
Error severityWhen it fails, how bad is it — wasted time, or real harm?
Tool-use accuracyDoes it choose the right tool with the right inputs?

3.6 Your product as a tool for other agents

Agents increasingly act on users' behalf across many products. Standards like the Model Context Protocol (MCP) let an agent connect to your product's data and actions. Ask: should our product offer an MCP server or API that other agents can use — and with what permissions? The technical details are in AI Agents & Agentic Workflows, and the risks in AI Security & Safety.

Activity: write an agent job description

Scope an agent for a task in your organisation: goal, tools with their risk rating, permissions, stop conditions and escalation. Then decide which tools need human approval at launch and what evidence would let you remove that approval.

See a worked example

Example — invoice-chasing agent: Goal: overdue invoices paid or escalated within 14 days. Tools: read ledger (read), draft reminder (reversible), send email (external — approval at launch), add note to account (reversible). Stop: 3 reminders or customer reply. Escalate: disputes, amounts over £10,000, any angry reply. Remove email approval after 500 approved drafts with under 2% edits and zero wrong-customer errors.

Key takeaways

  • Use a fixed workflow when it does the job.
  • Scope agents like a job: goal, tools, permissions, stops, escalation.
  • Grant autonomy per tool, by risk.
  • Show the plan, progress, checkpoints and an activity log.
  • Measure task success, interventions, cost per task and error severity.