Automation vs AI Workflows vs AI Agents: Understanding the Next Frontier
7th Jan 2025 | Aamir Faaiz
In today's rapidly evolving digital landscape, automation and AI have become buzzwords - but what do they really mean, and how can they help your business or project? More importantly, where do AI Agents fit in, and how do they differ from standard automation scripts or AI workflows?
This article will:
- Define Automation, AI Workflows, and AI Agents.
- Illustrate example use cases.
- Provide insights into future “agentic” capabilities (where AI Agents can autonomously handle tasks).
1. Automation Basics
Automation is the practice of using software or scripts to reduce or eliminate manual tasks. Often, these scripts follow a deterministic path: given a certain input, they carry out a predefined sequence of actions.
Key characteristics of Automation
- Rule-based: Typically follows “if-then-else” logic.
- Minimal intelligence: It handles repetitive tasks effectively, but doesn’t “learn” or adapt unless reprogrammed.
- High reliability: As long as input conditions are consistent, the automation behaves predictably.
Example: Using a Python script to bulk-upload CSV data into a database at 8 PM every night.
import schedule
import time
import csv
import sqlite3
def bulk_upload():
# Connect to an SQLite database
conn = sqlite3.connect('data.db')
cursor = conn.cursor()
with open('input_data.csv', 'r') as csvfile:
reader = csv.reader(csvfile)
for row in reader:
# Insert or update data
cursor.execute("INSERT INTO sales_data (product_id, quantity, price) VALUES (?, ?, ?)",
(row[0], row[1], row[2]))
conn.commit()
conn.close()
print("Bulk upload completed.")
# Schedule the job every day at 8 PM
schedule.every().day.at("20:00").do(bulk_upload)
while True:
schedule.run_pending()
time.sleep(60)
In this script, there’s no “learning” or real “decision-making.” It’s purely an automated routine set to run at a specific time.
2. AI Workflows
AI Workflows incorporate machine learning models or other AI techniques into a pipeline. Instead of just “doing what they’re told,” these workflows often use inference or predictions from an ML model to decide the best course of action.
Key characteristics of AI Workflows
- Predictive capabilities: Uses trained models (e.g., regression, classification, neural networks) to forecast or categorise.
- Data-driven: Output depends on the patterns found in the data, not just a pre-coded rule.
- Structured pipeline: Often integrated into end-to-end workflows (e.g., data processing → model inference → decision → action).
Example: An AI model that predicts product demand, feeding into an automated system that adjusts inventory levels accordingly.
import pandas as pd
from sklearn.ensemble import RandomForestRegressor
import schedule
import time
def predict_demand_and_adjust_inventory():
# Step 1: Load data
df = pd.read_csv('historical_sales.csv')
X = df[['day_of_week', 'marketing_spend', 'holiday_indicator']]
y = df['units_sold']
# Step 2: Train or load a pre-trained model
model = RandomForestRegressor(n_estimators=100)
model.fit(X, y)
# Step 3: Use the model for predictions
# Example: Predicting next week's sales
future_data = pd.DataFrame({
'day_of_week': [1, 2, 3, 4, 5, 6, 7],
'marketing_spend': [500, 600, 700, 800, 900, 300, 200],
'holiday_indicator': [0, 0, 0, 0, 0, 1, 0]
})
demand_predictions = model.predict(future_data)
# Step 4: Take action (e.g., adjusting inventory)
for day, units in enumerate(demand_predictions, start=1):
print(f"Predicted units for day {day}: {int(units)}")
# Here, you could call an API to adjust your inventory levels.
# Schedule the job every week
schedule.every().monday.at("08:00").do(predict_demand_and_adjust_inventory)
while True:
schedule.run_pending()
time.sleep(60)
This workflow not only runs automatically but also uses machine learning to guide decisions about inventory—an intelligent step above pure automation.
3. AI Agents
AI Agents push the concept even further. They are often designed to function more autonomously, using large language models (LLMs) or advanced reinforcement learning approaches. An AI Agent can:
- Observe its environment,
- Reason with an internal or external knowledge base,
- Plan multiple steps ahead,
- Act to achieve a goal or sub-goals,
- Learn from feedback to refine its decision-making over time.
Imagine an agent that not only predicts your inventory needs but also negotiates with suppliers in real-time or manages an entire business workflow from marketing strategy to final product delivery - adapting its approach as conditions change.
import random
# Pseudocode for an AI Agent that negotiates with suppliers:
class SupplyNegotiationAgent:
def __init__(self, llm_model):
self.llm_model = llm_model # e.g., an LLM (OpenAI,Anthropic, etc.)
def observe(self, conversation_history):
self.conversation_history = conversation_history
def plan_and_act(self, supplier_query):
# Use the LLM to reason about next best steps
system_prompt = "You are a negotiation AI agent. Try to get the best price."
user_prompt = f"Supplier message: {supplier_query}\n Conversation so far: {self.conversation_history}"
# The LLM might analyze relevant cost data, shipping constraints, etc.
# Then propose a response
response = self.llm_model.generate(system_prompt, user_prompt)
# Decide on some internal logic (just random for demonstration)
best_price = random.randint(70, 100)
next_message = response + f"\nWe propose a price of {best_price} per unit."
return next_message
# Example usage (placeholder for an actual LLM instance)
class DummyLLM:
def generate(self, system_prompt, user_prompt):
return "Let's discuss the details to find a mutually beneficial agreement."
agent = SupplyNegotiationAgent(llm_model=DummyLLM())
agent.observe("Previous messages about product specs and shipping times.")
reply = agent.plan_and_act("We can offer you a price of 120 per unit.")
print("Agent's reply:", reply)
In this (simplified) example, the AI Agent is capable of analysing a negotiation context, planning its response, and then acting by sending a reply. In a real-world scenario, it could iterate multiple times, adjusting its strategy based on the supplier’s feedback and new data.
4. Use Case: Inventory Optimisation with Autonomous AI Agents
Let’s bring it all together into a single scenario:
- Automation: A script that collects real-time sales data every hour and stores it in a database.
- AI Workflow: A forecasting model that predicts how many units will be sold in the next week.
- AI Agent: An autonomous agent that uses the forecast data, checks supplier availability, negotiates prices, and places orders automatically if it deems the price favourable.
In effect, you have an entire supply chain loop: from data collection (Automation) → demand forecasting (AI Workflow) → autonomous decision-making and negotiation (AI Agent).
6. The Future is (More) Agentic
As LLMs and reinforcement learning systems improve, we can expect AI Agents to become more agentic—meaning they’ll be able to act independently, adapt on the fly, and collaborate with other AI agents or humans to achieve complex, multi-step objectives.
Possible Future Scenarios
[1] AI-Driven Hedge Funds
Autonomous trading agents that analyse financial markets, discover high-frequency or long-term investment opportunities, and execute trades - potentially coordinating with other specialised agent “colleagues” for risk management, portfolio optimisation, and regulatory compliance. Such agents could dynamically adjust trading strategies in real time based on emerging data, geopolitical events, or even social sentiment analysis.
[2] Continuous Process Optimisation
AI Agents monitor machine sensors, predict maintenance needs, and arrange for repairs without human intervention.
[3] AI Governance & Data Protection Officers (DPOs)
Agents that automatically monitor and audit data usage to ensure regulatory compliance (e.g., GDPR, CCPA, HIPAA). These AI governance assistants can detect policy violations, propose mitigations, and generate compliance reports. By bridging the gap between technical teams and legal requirements, they help maintain an ethically driven, legally compliant enterprise environment—while still requiring human oversight for complex ethical or interpretational decisions.
[4] Healthcare or Clinical Guidance
Agents that support physicians by proactively checking patient symptoms, scheduling follow-up tests, ordering labs, and triaging urgent cases.
[5] AI Agents in Poultry Operations
1/ Smart Feeding and Nutrition: Agents dynamically adjust feed composition and schedules based on growth curves, weather conditions, and real-time market pricing for feed ingredients.
2/ Supply Chain Coordination: Intelligent negotiation with feed suppliers or transport logistics providers—adjusting orders based on predictive analysis of demand and optimising cost.
In each of these scenarios, AI Agents step well beyond narrow tasks - collaborating, negotiating, and learning in complex, evolving environments. This agentic future heralds a new level of autonomy and sophistication in AI-driven systems, offering vast potential but also necessitating careful governance and ethical considerations.