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← All glossary termsAgentic AI & Agents

Tool Use

The pattern where an LLM invokes external tools (APIs, functions, code) to take action beyond text generation.

What is Tool Use?

Tool use is what turns an LLM from a text generator into an action-taker. You expose tools to the model (read a database, call an API, run code, search the web); the model decides which to call and when.

Anthropic's naming. OpenAI calls the same idea **function calling**. Either way, the practical engineering is: define tools as JSON schemas, give the model agency over when to call them, handle the responses, loop until the task is done.

In 2026, "agent" effectively means "an LLM with tool use in a loop". Cursor uses tools to edit files; Claude Code uses tools to run commands; production data agents use tools to query warehouses and run SQL.

Why this matters

Tool use is the entry-level skill for agent engineering — without it, you do not have an agent. Every Indian Gen AI engineering interview tests it.

Real-world example (India)

A Chennai DevOps team built an internal agent with 4 tools: read_logs, run_kubectl_command (read-only), check_metric, post_to_pagerduty. On-call engineers describe the problem in chat; the agent triages and resolves 60% of issues without human keystrokes.

Related terms

  • Function Calling
  • AI Agent
  • Agentic AI
  • MCP (Model Context Protocol)

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