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Updated October 2026 · 9 min read · for students, builders & business owners

Intelligent agents in AI: definition, PEAS, 5 types and 10 examples

Most explanations of intelligent agents stop at the textbook. This one explains the theory in plain English, lets you build a PEAS description with one click, and then shows how the exact same thinking becomes an AI agent a business pays for every month.

Jarvy, AI teacher at UpsellConnect

Jarvy, your teacher on this page. Jarvy teaches people how to make money with AI by building and selling AI agents to real businesses.

The short answer

An intelligent agent is anything that perceives its environment through sensors and acts on it through actuators, choosing the action that is expected to do best on a performance measure. That is the classic definition from Russell & Norvig's Artificial Intelligence: A Modern Approach. A thermostat is a very simple agent. A self-driving car is a very complex one. An AI receptionist that answers messages and books appointments sits in between.

How an intelligent agent works: sense, think, act

Every agent runs the same loop, again and again. The difference between a thermostat and a self-driving car is how smart the middle step is.

1. Sensors

Take in percepts: a camera frame, a temperature, a new WhatsApp message.

2. Agent program

Maps what it perceived (plus memory, goals) to the next action.

3. Actuators

Do something: brake, move a robot arm, send a reply, book a slot.

4. Environment

Changes because of the action, which creates new percepts.

Agent = architecture (the body: hardware, servers, tools) + program (the logic that picks the action)

PEAS: describe any agent in 4 lines

Before anyone builds an agent, they write down its Performance measure, Environment, Actuators and Sensors. Pick an agent to see its PEAS. Two are textbook classics, two are agents businesses pay for.

PPerformance measure

Safe, fast, legal trip; passenger comfort

EEnvironment

Roads, other traffic, pedestrians, weather

AActuators

Steering, accelerator, brake, signals, horn

SSensors

Cameras, lidar, radar, GPS, speedometer

Type: utility-based agentPartially observable · stochastic · dynamic · multi-agent

The 5 types of intelligent agents

Each type remembers more and looks further ahead than the one before. Full explanation with diagrams: types of AI agents.

1

Simple reflex

If condition, then action. No memory.

Thermostat
2

Model-based

Keeps an internal picture of what it can't see right now.

Robot vacuum
3

Goal-based

Plans a sequence of actions to reach a goal.

Route planner
4

Utility-based

Weighs options and picks the best trade-off, not just any goal.

Self-driving car
5

Learning

Gets better from feedback on its own results.

Spam filter

Quick check: which type is it?

A heater switches on whenever the room drops below 19 °C.

An app finds a route from your home to the airport.

A booking agent fills the calendar while weighing travel time, job value and the customer's preferred slot.

Your score3 / 3

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Environment properties: why some agents are much harder to build

The textbook sorts every environment on 6 scales. Compare a chess engine with an AI receptionist.

PropertyChess (with a clock)AI receptionist
ObservableFully: the whole board is visiblePartially: it can't see what the customer really means
DeterministicYes: a move has a known resultNo (stochastic): people answer unpredictably
Episodic or sequentialSequentialSequential: one reply shapes the next
Static or dynamicSemi-dynamic: the clock runsDynamic: new messages arrive while it works
Discrete or continuousDiscreteDiscrete: messages and time slots
Single or multi-agentMulti-agent (opponent)Multi-agent (customers, staff, other tools)

This is why business agents need a human handoff: in a partially observable, stochastic environment the agent will meet situations it can't resolve. Systems where several agents work together are covered in multi-agent systems. The modern, business-ready version of these ideas is called agentic AI.

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10 examples of intelligent agents in AI

From the textbook to the ones on a business's monthly invoice.

AgentTypeSensorsActuators
ThermostatSimple reflexThermometerHeater switch
Spam filterLearningIncoming emailMove to spam / inbox
Chess engineUtility-basedBoard positionNext move
Robot vacuumModel-basedBump, dirt and cliff sensorsWheels, brushes, suction
Self-driving carUtility-basedCameras, lidar, GPSSteering, brake, accelerator
Recommendation engineLearningClicks, views, purchasesRanked list of products
AI receptionistGoal-basedWhatsApp, web chat, calendarReplies, bookings, handoff
Voice agentGoal-basedPhone audio (speech-to-text)Spoken answer, booking
Lead follow-up agentGoal-basedForm entries, missed callsTexts, CRM updates
Multi-agent teamSeveral typesEach agent's own inputsHand work to each other

The last four are what an AI agency sells. 20 more, sorted by industry: AI agent examples.

From textbook agent to an agent a business pays for

The difference between a homework agent and a paid one is not the AI model. It is the performance measure. A business doesn't pay for "an agent". It pays for one number that improves: missed calls answered, leads replied to within a minute, appointments booked.

  1. P first: pick one task a business loses money on and one number to improve.
  2. E, A, S: list the channels it reads (sensors) and the tools it may use (actuators): calendar, CRM, WhatsApp.
  3. Build it with no code, add a human handoff, and run a short paid pilot.
  4. Charge a setup fee plus a monthly retainer to keep it running and improving.

What an agent earns depends on the niche, your pricing and how many clients you sign. These steps are a method, not a promise of income.

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Go deeper: what are AI agents · how to build AI agents · what is an AI agency · AI agent pricing

3 jobs local businesses pay an AI agent to doFrom lesson 2 of the free course

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Questions

What is an intelligent agent in AI?

Anything that perceives its environment through sensors and acts on it through actuators, choosing the action that is expected to do best on its performance measure. A thermostat, a chess engine, a robot vacuum and an AI receptionist are all agents.

What is PEAS in artificial intelligence?

Performance measure, Environment, Actuators and Sensors: the standard way to describe an agent's task before you design it. Try the PEAS builder above.

What are the 5 types of intelligent agents?

Simple reflex, model-based reflex, goal-based, utility-based and learning agents. Each keeps more information about the world and plans further ahead than the one before.

What is a rational agent?

An agent that picks the action expected to maximise its performance measure, given what it has perceived and knows. Rational does not mean all-knowing; it means doing the best with the information available.

Is ChatGPT an intelligent agent?

A chat model on its own mostly answers text with text. It becomes an agent when it is connected to tools and allowed to act, such as booking an appointment, sending a message or updating a CRM, in a loop with a goal.

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