Diagram showing an AI agent calling external tools and APIs
Intermediate

Tool Use & Function Calling

AGAI 201

Learn how AI agents extend their capabilities through tools. Explore function calling APIs, tool design patterns, and how agents decide which tools to use and when — turning language models into systems that can act on the real world.

Beyond Text: Agents That Act

A language model on its own can only produce text. Tools transform it into a system that can search the web, run code, query databases, call APIs, manage files, and interact with external services. Tool use is what makes the difference between a chatbot and a capable AI agent.

The Function Calling Revolution

Modern LLM APIs include a function calling interface that allows the model to request the execution of predefined tools. The model decides when to use a tool, what arguments to pass, and how to incorporate the result into its reasoning. This section explores how function calling works under the hood and how to design tool interfaces that models use reliably.

What You Will Learn

You will learn how to design and implement tools for AI agents: writing schemas that models call reliably, handling errors and edge cases gracefully, securing tool-using agents against misuse, and evaluating whether your agent is making good tool-selection decisions. You will work through practical examples with search, code execution, database, and API tools.

Who This Course Is For

This course is for developers building AI-powered applications who want to give their models the ability to act in the world — not just respond with text. If you have built chatbots or basic LLM integrations and are ready to extend your agent with real capabilities, this is the course that bridges the gap between conversation and action.

What you will learn

  • Explain how function calling works in LLM APIs
  • Design clear and reliable tool schemas
  • Implement a tool-using agent with standard frameworks
  • Handle tool errors and edge cases gracefully
  • Identify security risks in tool-using agents
  • Evaluate the performance of tool-augmented systems

Major topics

What are tools in the context of AI agents?The function calling API: how it worksDesigning reliable tool interfacesTool selection and orchestrationWeb search, code execution, and file toolsError handling and tool retriesSecurity considerations for tool-using agentsEvaluating tool-augmented agents

Why this course matters

Tool use is the bridge between language model intelligence and real-world action. Understanding how to design and implement tool-using agents is essential for building any practical AI application beyond simple Q&A.

Course modules

Common misconceptions

  • Function calling means the model executes code directly

  • More tools always make an agent more capable

  • Tool-using agents are inherently unsafe

  • Function calling is only for code-related tasks

Ask your AI guide

AI Chat· Tool Use & Function Calling
🤖

Ask anything about Tool Use & Function Calling, or choose a suggested question below.

AI responses are educational and may not be perfectly accurate. Press Enter to send, Shift+Enter for new line.

Related courses