What is Tool Calling?

Explained

Tool calling lets LLMs request actions—SQL queries, HTTP requests, CRM updates—via schemas validated by the host. It powers agents, copilots, and grounded workflows beyond pure text.

Decision guides that use this term

• Build vs buy AI agents: which agents should you own, and which should you rent?
• Agentic AI vs generative chatbots: does your use case need an agent or a good assistant?
• MCP vs custom API integrations: how should your AI agents connect to your systems?
• Agent framework vs custom orchestration: should you adopt a framework or write your own agent loop?
• Reasoning models vs standard LLMs: when is the extra thinking worth paying for?

Further reading

• Enterprise AI Agents: Beyond Copilots to Your Next Digital Workforce

Related terms

• CRM System for managing customer relationships; AI augments it with prediction and automation.
• Agent Agenda The agent’s live plan: ordered steps, open subtasks, and checkpoints toward a goal.
• Agent Planner Component or prompt pattern that proposes multi-step plans before tools run.
• Agent Skill Packaged capability for an agent: instructions, allowed tools, and I/O schemas for one coherent task.
• Agentic AI AI systems that act autonomously, make decisions, and execute tasks in sequence.
• AI Agent Software entity that perceives its environment, makes decisions, and executes actions to achieve goals.