Georgia State University — J. Mack Robinson College of Business PATH — Pathways for AI Training & Hiring CIS 4394 Agentic AI  ·  Fall 2026  ·  Dr. Xinyu Fu
Week 5 · Module 2 · Tools & Protocols

Tool use & function calling.

Last week you built the loop. This week you build the Act arrow. A tool is how a language model reaches something outside itself — a calculator, a database, a payment API — and it is simultaneously the moment your agent stops being a chat window and starts being able to do damage. Tools are capability plus risk surface, and this week is about designing that surface on purpose.

📌 This week's logistics: 📝 Quiz 2 is this week — in class, closed-book, 5 multiple-choice. Scope: the Week 4 readings + the Week 5 reading (Ponnambalam, Build AI Agents and Chatbots with LangGraph). Sample questions are on the Week 4 practice page ↓. Group Assignment 2 releases this week on iCollege. And the Agent Radar continues — check your presenter slot.
The big question
Discussion questionWhen an agent “calls a tool,” what does the language model actually produce — and who runs the code?
The model produces a structured request and nothing else: a small block of JSON naming a function and its arguments, e.g. {"name":"calculator","arguments":{"expression":"4817*293*1.18"}}. It does not execute anything — it cannot. Your harness receives that request, validates the arguments against the schema you wrote, decides whether the call is even allowed, runs the function, and hands the result back as the next observation. Same division of labour as Week 4's loop: the model proposes, the harness disposes. Everything valuable this week follows from taking that sentence literally — because if the harness is the only thing that executes, the harness is the only place you need to put controls.
The hook

Arithmetic a model gets wrong

Your Berlin supplier invoiced 4,817 units at €293 each, plus 18% VAT. What is the euro total? Ask a language model to do it in its head, and ask it again with a calculator attached.

Model alone — illustrative
Q: 4817 × 293 × 1.18 = ? Model (predicting tokens, not computing): "That comes to about 1.68 million euros." fluent · confident · unverifiable · wrong

Nothing in the model multiplied anything. It produced the most plausible-looking continuation, which for long multiplication is a number of roughly the right size. Nobody downstream can tell the difference between this and a right answer.

Model + one tool
Model emits: {"name": "calculator", "arguments": {"expression": "4817*293*1.18"}} Harness runs it → 1665429.58 Answer: €1,665,429.58 exact · deterministic · reproducible · logged

The tool is about ten lines of Python. The model did not get smarter — it got a calculator, plus a line in the log saying exactly what was computed and with what inputs.

Be honest about why this works. Modern models are much better at arithmetic than early ones, and many will get this particular product right. That is not the point. The point is that a token predictor is non-deterministic and unauditable: you cannot promise a controller that the number will be right next month, and you cannot show the work. A tool call gives you exactness, repeatability, and a trace — three things a finance team will actually ask for.
Bridge from Week 4

The “Act” arrow, opened up

Week 4 · the loop
Observe → Reason → ACT → Update state ↑ (a black box)

Last week “Act” was a label on an arrow. You stepped through episodes where the agent “called Search” and a result appeared, and we deliberately did not ask how.

Week 5 · inside the arrow
model emits {name, arguments} → harness VALIDATES the arguments → harness DECIDES: run / constrain / ask a human → tool executes → result returns as an OBSERVATION

Five steps, four of which are ordinary software you write and test. Pages 01 and 02 take them one at a time.

Why tools at all

Four gaps a raw model cannot close

Gap 1 · Knowledge cutoff

A model's weights were frozen on a date. It cannot know your Q3 numbers, today's outage, or a policy you published last Tuesday. Closed by: a retrieval or search tool.

Gap 2 · Private & live data

Your CRM, your ticket queue, your inventory table were never in anyone's training data — and should not have been. Closed by: a read tool against your own systems.

Gap 3 · True computation

Predicting the next token is not arithmetic, and it is certainly not running a SQL query or a pricing model. Closed by: a calculator, a code runner, a query tool.

Gap 4 · Actions in the world

Text cannot file a ticket, send an email, or issue a refund. Closed by: write tools — and this is exactly where the risk arrives.

The framing: Anthropic's engineering guide calls this the augmented LLM — a model extended with tools, retrieval, and memory as its basic building block (Anthropic, 2024, Building Effective Agents ↗). This week is the tools corner of that picture; retrieval and memory come later in the semester.
This week's pages

Work through in order

Why managers care

Tools = capability + risk surface

Capability

A model without tools is a very expensive autocomplete. Every tool you add is a verb the agent acquires: read, compute, file, send, pay. The business value of an agent is almost entirely the value of its verbs.

Risk

Every verb is also a way to be wrong at scale. A read tool leaks; a write tool destroys; a spend tool costs money. The schema you write is where “what is this agent permitted to do?” actually gets answered — in code, not in a policy document.

Auditability

Because every tool call is a structured record — name, arguments, result, timestamp — a tool-using agent is far easier to audit than one that “just knows.” When compliance asks what happened, you replay the calls.

The manager's version of this week: you do not decide whether an agent is “safe” in the abstract. You decide, tool by tool, which calls run automatically, which run only inside limits you encoded, and which stop and wait for a person. Page 02 turns that into a table you can actually fill in.
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