Prompt

Guardrails are the policy, tone, and action limits an AI agent is not permitted to cross, such as refusing to issue refunds above a threshold or to discuss topics outside its remit. Guardrails are enforced in the system rather than merely requested in the prompt.

A large language model is the model class behind modern conversational AI, summarisation, and reply drafting. Trained on broad text corpora, it predicts language fluently but holds no inherent knowledge of a specific business, which is why grounding and retrieval are required before answering customer questions.

Grounding is the practice of constraining an AI agent’s answers to approved knowledge sources and live system data rather than to the model’s own training. Grounding is the main defence against hallucination, and it is what makes an AI answer auditable back to a specific document or record.

An AI agent is software that resolves a customer request end to end, taking actions in connected systems rather than only answering questions. Unlike a scripted chatbot, an AI agent can look up an order, issue a refund, or update a record, then confirm the completed outcome back to the customer.