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What Is Agentic AI Architecture and What are Its Core Principles?

18 mins read

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Agentic AI systems are inherently more complex than solutions with basic AI integrations, and building one is a genuinely challenging task. That task has to start with the fundamentals: the agentic AI architecture.

Around 88% of organizations now regularly use AI in at least one business function, according to McKinsey’s State of AI 2025 survey. But the complexity of such AI use cases significantly varies, and so does the architecture.

In this article, we’ll explore the basics of agentic AI architecture, its core layers, and the technologies used for building such systems.

What Is Agentic AI and How Does It Differ from Generative AI?

Agentic AI is a multi-agent system capable of autonomously pursuing goals. It sits at the fifth level of the AI adoption pyramid, right before the final stage.

ai maturity levels
AI adoption pyramid

Such solutions have limited autonomous reasoning capabilities and can plan a sequence of steps, call tools, check their own progress, and adjust course when something doesn’t go as expected.

In contrast to generative AI systems that primarily generate outputs based on prompts, agentic AI can act as a semi-autonomous employee. They still require human oversight due to common AI adoption challenges like hallucinations, bias, potential workflow disruptions, and a need for human input. However, the scope of tasks that such solutions can independently take is typically bigger than in other AI solutions.

The table below summarizes the key distinctions between generative AI and agentic AI.

Generative AI (LLMs, etc.)
Agentic AI

Core Function

Produces outputs (text, images, code) in response to prompts

Achieves goals by planning, acting, and iterating

Input/Output

One-shot: prompt → output

Continuous: goal/task → plan → actions → results

Autonomy

No autonomy, always reactive

Autonomous, can decide next steps without human prompts

Memory

Typically stateless (no persistent memory)

Has short-term and long-term memory for context and continuity

Reasoning Style

Pattern matching, probabilistic text generation

Structured reasoning (plans, decomposition, feedback loops)

Tool Use

Limited to text/code generation

Can call APIs, search the web, query databases, and control software

Feedback Loops

No self-correction (unless fine-tuned externally)

Self-reflects, retries, and improves through AI loops

Workflow Role

Acts like a content generator

Acts like an autonomous digital employee

Examples

ChatGPT, DALL·E, Claude

AutoGPT, BabyAGI, Microsoft Copilot with agent mode, enterprise AI agents

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How Does Agentic AI Work?

Agentic AI is still far from reaching its full potential. Companies keep experimenting and exploring various agentic AI ideas, taking different approaches to how this kind of artificial intelligence should work and what it can cover.

That’s typical of a trend still finding its shape. The global agentic AI market was valued at $7.06 billion in 2025, but MarketsandMarkets projects it will reach $93.2 billion by 2032, a compound annual growth rate of 44.6%.

agent-to-agent protocol
Agentic AI workflow

Even though many teams approach such systems differently, there is a standard workflow peculiar to most modern agentic AI solutions. It looks as follows:

  • Receiving a goal. The GenAI app receives the request, either from a user or from another system, and passes it to the agent orchestration layer.
  • Planning. The agent orchestration layer works with the LLM’s reasoning capabilities to break the goal into smaller, executable steps, then routes each step to the agent responsible for carrying it out.
  • Acting. The agent, also uses LLM for reasoning and action, invokes the tools, APIs, or source systems needed to execute each step. For example, it can query a database, run a calculation, or pull data from an enterprise system.
  • Observing. The agent evaluates the tool or system response against the goal, and this result is passed back up through the orchestration layer.
  • Adjusting. If the result doesn’t meet the predefined milestones, the orchestration layer revises the plan. It may reassign steps or invoke different tools.
  • Finalizing or escalating. Once the goal is met, the response flows back through the orchestration layer and the GenAI app to the user. If the agent hits the edge of what it can safely handle on its own, the task is escalated to a human instead.

This loop is one of the key factors that distinguish agentic AI systems from generative AI solutions that provide single-shot AI responses.

Key Components of Agentic AI Architecture

The key principles of agentic AI architecture are a clear separation of concerns and transparency.

Clear separation of concerns is vital to ensure that each agent within the system handles its own task, whether it’s task analysis, output generation, action completion through tool use, task orchestration, or result validation.

Transparency supports effective human oversight by making it possible to understand and explain how AI systems produce their outputs, as required by regulations such as the EU AI Act.

To ensure both parameters are met, software engineers typically build agentic AI systems using a layered approach.

agentic ai architecture
Layered approach to agentic AI architecture

Below is an overview of the key layers within such a system.

Foundation large language model (LLM)

A large language model is fundamental to any agentic AI system. It handles reasoning, language understanding, and decision-making, setting the foundation for all other levels within the agentic AI system.

Within that role, the foundation model typically handles:

  • Parsing ambiguous or unstructured requests into a clear intent
  • Weighing different possible interpretations before acting
  • Choosing a course of action based on context
  • Reasoning over incomplete or missing information
  • Extracting structured data from unstructured text
  • Evaluating input against criteria or standards
  • Generating explanations for its own decisions

Suppose an IT vendor builds a sales agent that automatically scans job boards for cooperation opportunities, scores them by potential fit, and recommends the best ones to pursue with a request for proposal (RFP). In such a system, the foundation LLM reads each job listing, determines whether the underlying project actually matches the vendor’s services and capacity, and flags it as a strong match, a partial fit, or clearly out of scope.

Leobit has built a platform that provides such functionality, which has enabled a 20% increase in leads from outsourcing platforms.

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The choice of a foundation model shapes everything built on top of it. If it effectively handles function calling, connecting external systems becomes much more reliable. For example, the agent might retrieve a vendor profile from one platform and log scored opportunities in a CRM or deal pipeline.

Teams building agentic systems often use multiple foundation models. A lightweight, faster model performs the first pass, filtering out job offers that are clearly irrelevant. A larger, more capable model then evaluates the remaining opportunities and scores them against fit criteria.

Goal-setting layer

This layer turns a high-level objective into a specific execution plan. Depending on the project, the planning can be handled either by the foundation model itself or by a separate planning model built on top of it. This layer determines which subtasks need to be done, in what order, and what “done” means for the overall goal.

A good example is an agentic AI system with video analysis capabilities used for flagging fleet safety incidents in logistics operations. A single instruction for such a solution may hide a dozen smaller steps, such as pulling the relevant video files, running each clip through an incident detection model, generating an incident summary report, etc. The goal-setting layer of an agentic AI system breaks that instruction into an ordered and executable sequence.

This layer also handles prioritization and dependency management. An agentic AI system can run multiple tasks in parallel, but some steps still have to happen in sequence. For example, an incident report can only be generated after the video analysis is complete.

A well-designed goal-setting layer recognizes these dependencies and sequences work accordingly. Before considering the task complete, this layer verifies that all required steps have been completed and the expected outcome has been achieved.

Orchestration layer

Once a goal has been broken into subtasks, something has to actually run that plan. An orchestration layer takes on this responsibility, serving as the runtime engine that executes the plan the goal-setting layer produces. It calls system components, passes outputs from one step into the next, and adapts when a step doesn’t go as expected.

Let’s take a look at an agentic AI system built for fraud detection at a fintech company. The goal-setting layer has already decided that a flagged transaction must go through identity verification, transaction pattern analysis, and a risk-scoring step, in that order. The agentic AI orchestration layer runs each component in sequence and passes the identity check result to the pattern analysis model.

It also keeps track of the workflow state, including the account history, detected anomalies, and the current risk score while the transaction is being evaluated. If the identity-verification service times out, the orchestration layer decides whether to retry the call, fall back to a secondary verification provider, or escalate the transaction for manual review.

Memory layer

Agents need to remember context, both within a single task and across sessions. The memory layer addresses both needs by storing prior interactions, intermediate results, and learned preferences, so the agents don’t have to start from scratch every time.

Short-term memory is what lets an agent keep track of its location within a single multi-step task. For example, if an agent is three steps into processing an insurance claim and needs to pause to fetch a missing document, it has to remember what it already verified and what’s still outstanding when it resumes instead of re-checking everything from scratch.

Long-term memory works differently. It persists across sessions and often across users entirely. For instance, an agentic AI sales assistant that remembers a specific client prefers phone calls over email is drawing on long-term memory. This is usually implemented using a vector database, which stores information as embeddings and retrieves the most relevant context on demand rather than loading the entire interaction history into the prompt each time.

Memory design also has real cost and privacy implications. First, storing every detail forever isn’t free. Secondly, in regulated industries such as healthcare, an agent’s memory isn’t just a technical decision. Deciding what it can remember about a person, and for how long, is a compliance requirement.

External tooling

Agentic AI systems rely on external tools to complete tasks. These tools can range from APIs and databases to search engines and internal business systems. The external tooling layer enables AI agents to perform actions and complete specific tasks. For example, in a customer support system, the AI model can reason that a refund is warranted, but issuing it requires contacting a separate payment processor that actually has the authority to move the money.

External services often connect to an agentic system through custom API integrations built for a specific tool. Another option is to use standardized protocols, such as the Model Context Protocol (MCP), which allow an agent to use new tools without custom code for each one. Agentic AI orchestration frameworks like LangChain also ship with built-in connectors for common tools, saving teams from crafting every integration themselves.

Tool integration also introduces one of the harder engineering problems in agentic systems: deciding how much autonomy to give an agent over which tools. Mature agentic architectures build in permission tiers, so an agent might be allowed to query a database freely but required to get human sign-off before executing an action with financial or legal consequences.

AI feedback and validation loops

The loop is what makes an agent self-correcting. Without it, an agentic AI system will only get one attempt at a task, with no way to recognize or fix a failure.

Here’s what that looks like in practice. For instance, a system tasked with generating a sales report might query a database, build a summary, and then check its own output. It verifies that the reported revenue matches the source data, confirms that all requested report categories are included, and checks whether the output meets the required formatting rules. If any of these checks fail, the feedback loop prompts the agent to revise its approach. It may retrieve data from a different table, adjust an overly restrictive filter, or make other changes before attempting the task again.

Validation is what decides if an output is actually good enough to hand off. It’s a final check against a clear standard, such as a business rule or a compliance requirement, before the result is delivered to a person or a downstream system.

This loop also allows an agent to handle situations its initial plan didn’t anticipate. If a tool call fails because an API is down, the loop is what decides whether to retry, fall back to an alternative method, or escalate to a human.

The maximum number of iterations an agent is allowed to perform is an important design consideration. If the limit is too low, the agent may abandon tasks that could have been completed successfully. If it is too high, the agent may waste time and computational resources repeatedly attempting an unsuccessful approach. Selecting an appropriate iteration limit, together with clearly defined conditions for escalating a task to a human operator, is essential for building a reliable and efficient agentic system.

Technologies Behind Agentic AI

Building an agentic AI system from scratch gives organizations full control over the architecture. At the same time, it requires implementing and maintaining a range of advanced capabilities, from orchestration and memory to tool integration, observability, and guardrails. Putting them together means building and maintaining several sophisticated subsystems at once.

Instead of implementing each layer from scratch, software engineers can rely on frameworks, protocols, and infrastructure tools that provide much of this functionality out of the box.

Below, we share the core technologies used in agentic AI development, grouped by category.

Orchestration and frameworks

Agentic AI frameworks and orchestration tools handle the core logic of running an agent: managing state, chaining reasoning steps, and coordinating calls between models, tools, and data sources.

Below are the examples of such solutions.

  • LangChain and LangGraph. LangChain provides building blocks for chaining LLM calls and tools together. LangGraph extends it with graph-based agentic AI orchestration, which is more relevant for agent workflows where steps branch, loop, or depend on one another.
  • Semantic Kernel. Microsoft’s framework for integrating LLMs into applications, with strong support for the .NET ecosystem.
  • AutoGen. A framework for building multi-agent systems where several specialized agents collaborate on a task, each handling a distinct piece of the work.
  • CrewAI. A framework focused on role-based multi-agent collaboration. Each agent is assigned a defined role within a “crew,” similar to how a human team divides responsibilities.

These frameworks can be used standalone or combined, depending on whether you need simple multi-agent collaboration or complex branching workflows.

Protocols

Protocols standardize how agents communicate with tools and with each other. With their help, teams aren’t stuck writing one-off integrations for every new model or vendor.

Here are some of them.

  • MCP (Model Context Protocol). A standard for connecting AI models to external data sources and tools through a common interface. It simplifies integrations within an agentic AI system and reduces the need for custom code for each tool.
  • A2A (Agent-to-Agent Protocol). A protocol governed by the Linux Foundation that enables agents built on different frameworks or by different vendors to communicate and delegate tasks to one another.

The choice of the protocol largely depends on the amount of customization required, as well as your tech stack.

Memory and retrieval

Long-term memory in agentic AI is typically implemented with vector databases, allowing agents to retain and retrieve information across interactions.

Here are some of the databases you can use for that task.

  • Pinecone. A managed vector database that stores and retrieves content based on meaning instead of exact keywords. It powers retrieval-augmented generation (RAG) and gives agents access to long-term memory.
  • Qdrant. An open-source vector database built for the same kind of meaning-based search and retrieval. It is designed for teams that want to self-host and keep full control over their infrastructure and data.

In practice, teams often use more than one vector database. Each can be optimized for a different workload, such as conversational memory or domain-specific knowledge.

Cloud and infrastructure

Cloud and infrastructure platforms give teams the compute, security, and enterprise controls needed to deploy and scale agentic AI beyond a PoC or a prototype.

Feel free to use:

  • Amazon Bedrock. AWS’s managed service for building and scaling generative AI applications. It provides access to multiple foundation models, alongside Amazon SageMaker for training and deploying custom models.
  • Azure OpenAI Service. A service that provides access to OpenAI’s models through Azure’s infrastructure.
  • Microsoft Foundry. Microsoft’s platform for building, deploying, and managing AI applications and agents.
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Ultimately, much of this choice comes down to the cloud provider you’re already invested in because this choice can save your team far more integration effort.

Evaluation and observability

Once an agent is running, teams need visibility into its behavior, which can be established through the integration of evaluation and observability tools.

  • LangSmith. A tool for tracing, debugging, and evaluating LLM and agent workflows, giving teams visibility into what an agent did and why.
  • Arize Phoenix. An open-source observability platform for tracing, evaluating, and troubleshooting LLM applications and agents, with support for tracking performance drift over time.

Ultimately, the right pick depends on your existing stack. Teams already using LangChain or LangGraph often default to LangSmith for tighter integration, while Arize Phoenix’s open-source, vendor-agnostic design makes it a better fit for a multi-cloud setup.

Gartner predicts that 40% of agentic AI projects will be canceled by the end of 2027. Even with the right tools and architecture, building an agentic AI system that delivers real business value remains a complex engineering challenge that requires significant engineering expertise. That’s where Leobit can help.

How Can Leobit Help You Build and Adopt Agentic AI?

Leobit combines engineering expertise with strong AI delivery capabilities, built over 6+ years developing AI solutions for internal needs and client projects. The company has hands-on experience across all technologies covered in this article, as well as deep expertise in the Microsoft stack.

Leobit is a long-standing Microsoft Solutions Partner for Digital & App Innovation and Data & AI, a recognition that testifies to our technical expertise, certified talent, customer success, and the ability to deliver high-quality solutions built on Microsoft technologies.

The company also has a wide range of awards and recognitions that testify our AI experience. For example, Clutch has recognized Leobit as a Top AI Code Generation Company, and we continue deepening our AI expertise through advanced certifications, including Anthropic’s certification process, with Claude Certified Architects already on the team.

We’re ready to cover the full cycle of your AI idea implementation, from planning and validation through the release of an agentic AI solution that transforms your workflows.

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Conclusions

Agentic AI architecture is a stack of interdependent layers, each solving a distinct engineering problem. Getting the foundation model right matters, but so does how well the goal-setting, orchestration, memory, tooling, and validation layers work together. The real value comes from how smoothly these pieces interact, not any single layer in isolation.

Plenty of tools and technologies are available for building agentic AI systems. However, success still depends on a solid understanding of the underlying architecture and overall agentic AI expertise.

That’s when Leobit can help. Contact us to find out how we can help you design and adopt an agentic AI solution tailored to your needs.

FAQ

Typically, agentic AI works through a loop. It receives a goal, breaks it into an executable plan, and acts by calling tools, APIs, or other systems to carry out each step. It then checks the results against the goal, adjusts its approach if something falls short, and either completes the task or escalates it to a human when it hits its limits.

Agentic AI promises to automate complex, multi-step workflows end-to-end, cutting manual effort and speeding up processes that once required constant human coordination. Beyond automation, it supports a shift toward more autonomous, always-on operations, where agents can plan, act, and self-correct instead of waiting on a person for every decision.

A mix of orchestration frameworks, such as LangChain, LangGraph, AutoGen, or CrewAI, protocols such as MCP and A2A for standardizing tool and agent communication, and vector databases like Pinecone or Qdrant for long-term memory. Cloud platforms such as Azure OpenAI Service or Microsoft Foundry provide the compute and enterprise controls needed to deploy at scale, while tools like LangSmith provide evaluation and observability.

Not always a full discovery phase, but some level of upfront planning is a must. Mapping out which layers you need, what tools fit your workflow, and where human oversight belongs helps your team organize your solution and take a more structured approach to its implementation. A dedicated discovery phase makes this easier and catches issues before they turn into costly rework.