AI Agents Explained: What Is a ReAct Loop and How Does It Work?

AI agents can tackle complex, multi-step problems using a powerful framework known as a ReAct loop. This process involves the agent repeatedly cycling through three stages: Reasoning about what information it needs, Acting by calling a specific tool to get it, and then Observing the result. The key advantage is that each observation informs the next reasoning step, allowing the agent to handle tasks where one action depends on the outcome of a previous one. For example, to determine the winnings of a bet on whether it rained, an agent must first check the weather and only then decide if a currency conversion tool is necessary based on that outcome.