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agent-loop

The observe-plan-act loop

Last reviewed Oct 2, 2026 Content v20261002
Track mode
none
Means
Read / quiz
Reading
~2 min
Level
beginner

This lesson

This lesson teaches The observe-plan-act loop: core ideas and practice patterns for AI Agents.

Teams apply The observe-plan-act loop in every serious AI Agents project—skipping it leaves blind spots in analysis and reviews.

You will apply The observe-plan-act loop in contexts like: Support workflows, research assistants, code agents, and any product that lets a model call an API.

Study explanations, case studies, and MCQs—this topic is read/quiz focused without a code runner.

At the start of the track—complete before lessons that assume introductory vocabulary.

The observe-plan-act loop on the AI Agents track. The loop is observe, plan, act, then observe again. The new observation must include the tool result, not only the user's first message. Without that, the model repeats the same plan.

This lesson assumes you already worked through What an AI agent is.

The idea in practice

Store each step as a record: thought, action name, arguments, and observation. Cap the loop at a small number of steps, often 8 to 15 for a support task. When the cap is hit, stop and ask a person. Do not let the loop run until the context window fills.

A concrete check

goal = {
    'track': 'AI Agents',
    'lesson': 'The observe-plan-act loop',
}
checks = [
    'input available at decision time',
    'score matches the real decision',
    'failure case written down',
]
print(goal['lesson'])
for item in checks:
    print('-', item)

Run the sketch locally if you have Python. The printout is a reminder of the checks, not a trained model. Replace the strings with the real inputs from your own example before you treat it as a design.

What usually goes wrong

Feeding only the original question back in, and dropping the tool result, makes the agent call the same tool forever. When this happens, stop adding parameters or tools. Fix the check, the data, or the permission, then run the same example again.

What to write down

  • The input you are allowed to use at decision time.
  • The output and the score or pass rule.
  • One failure you will test on purpose.
  • What you will not claim the system can do.

Practice

Write a five-step trace on paper for 'find the latest invoice and email the total'. Mark which step is an observation.

Self-check

  1. Say The observe-plan-act loop in one sentence that mentions an input and an output.
  2. Name the failure mode in this lesson and the check that would catch it.

Done when: you can explain this lesson without the page open, and you have a written failure case.

Interview tip Lesson completion confidence

Can you explain this lesson in 30 seconds without reading notes?

Not saved yet.

Check yourself

Multiple choice — immediate feedback.

Discussion

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Starter discussion topics

  • What part of this lesson needs a second read?
  • What would you try differently in a real project?

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