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AI Tool Use

Definition

AI tool use is the capability of an AI system to select and use external tools to complete a task.

AI tool use includes deciding when to call a tool, which tool to call, what information to pass, how to interpret the result, and what to do next. It is a core component of agentic behavior.

For businesses, tool use is where productivity gains show up. A system that can read a support email, check the customer account, draft a reply, update the ticket, and notify the account manager is far more valuable than a system that merely suggests what someone else should do.

Related terms

Function Calling

Function calling is a structured method that lets an AI model request specific tools or functions with defined inputs.

Model Context Protocol

Model Context Protocol, often called MCP, is an emerging standard for connecting AI systems to tools, data sources, and external context.

Retrieval-Augmented Generation

Retrieval-augmented generation, or RAG, is a method where an AI system retrieves relevant information before generating an answer or taking action.

Tool-Using AI

Tool-using AI refers to AI systems that can interact with external tools such as APIs, databases, browsers, CRMs, calendars, and business applications.