by Amit Shekhar · 28 May 2026
AI Agent Loop
The AI Agent Loop - what it is, why an AI Agent needs it, the think-act-observe cycle that powers it, how the loop knows when to stop, and the common ways the loop fails.
Read on Outcome School ↗then come back to lock it in
Before you read, guessWhat happens to an LLM if the loop is removed versus added?
Ten seconds, a guess, then read — a wrong guess still makes the answer stick.
What this article covers
- The Big Picture
- What is the AI Agent Loop
- Why an AI Agent Needs a Loop
- The Think-Act-Observe Cycle
- The Loop Step by Step
- The Loop in Real Code
- Parallel Tool Calls in One Turn
- How the Loop Knows When to Stop
- Common Loop Failures
The article lives on outcomeschool.com. Read it there, then come back: the tutor in the margin has read it and will answer questions, and the questions below check what stayed.