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LearnSystem Design PlaybookDesigning LLM Agent Systems

Designing LLM Agent Systems

2 min read

Designing LLM Agent Systems

An agent is an LLM that can take actions — call tools, query APIs, run code — in a loop until it accomplishes a goal, rather than answering in a single shot.

The agent loop

Goal ─▶ ┌───────────────────────────────┐
        │  1. LLM reasons about state    │
        │  2. Chooses a tool + arguments │◀── observation
        │  3. Tool executes              │
        │  4. Result fed back as context │───┘
        └──── repeat until done ─────────┘ ─▶ Final answer

This is ReAct (reason + act): the model decides what to do next each iteration.

Core components

  • Tools — well-described functions (search, DB query, run code). Clear names + schemas are critical.
  • Memory — short-term (the conversation) and long-term (a vector store).
  • Orchestrator — the loop that runs the model, executes tools, handles errors and limits.

Single vs multi-agent

Pattern When
Single agent + tools Most tasks — simpler, cheaper, easier to debug
Multi-agent Distinct skills or parallel work; adds coordination overhead

Prefer the simplest design that works. Multi-agent systems multiply cost, latency and failure modes.

The hard parts of production agents

  • Reliability — models err; add validation, retries and guardrails around every tool call.
  • Cost & latency — each loop is an LLM call; cap iterations and cache.
  • Runaway loops — set a max-steps budget; detect repeated identical actions.
  • Security — sandbox code execution, whitelist actions, never trust tool output blindly (prompt injection).
  • Observability — log every reasoning step and tool call; you can't debug an agent you can't trace.

Takeaway: an agent is a control loop around an LLM. The intelligence is in the model; the engineering is in the tools, guardrails and observability.

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