Framework
The reason–act–observe loop
The question it answers
When a team puts an AI agent to work on a real task, what does it do at each reason, act and observe step to get from receiving a goal to finishing?
- Origin
- Yao et al., 2023; Anthropic, 2024
- Diagram type
- Cycle
- Level of analysis
- Team
- Topics
- AI for leaders

Diagram
The reason–act–observe loop
- ReasonPlan the next step.
- ActCall a tool.
- ObserveRead the result from the environment, then repeat.
Pitfalls
Pitfall
Needs an explicit stop condition and pauses for human feedback at checkpoints.
Sources
References
Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.
- Anthropic (2024) Building effective AI agents. Anthropic Research.No DOIanthropic.comSource page
- Yao, S. et al. (2023) ReAct: synergizing reasoning and acting in language models. (ICLR 2023 (camera-ready version); arXiv:2210.03629).doi:10.48550/arXiv.2210.03629Source page