Almost Timely News: 🗞️ How to Connect an AI Agent to a Data Source (2026-07-19) :: View in Browser The Big Plug👉 New book! 21 Use Cases of Generative AI For Marketers 👉 Please take my 6-question Reader Survey to tell me what you want! The drawing winner for the summer survey is Tiina! I’ve emailed you. Content Authenticity Statement99% of this week’s newsletter was made by me, the human. You’ll hear AI music generated by Suno in the AI montage. The video shows ChatGPT Codex working on the app construction. Learn why this kind of disclosure is a good idea and might be required for anyone doing business in any capacity with the EU in the near future. Watch This Newsletter On YouTube 📺Click here for the video 📺 version of this newsletter on YouTube » Click here for an MP3 audio 🎧 only version » What’s On My Mind: How to Connect an AI Agent to a Data SourceThis week, a direct request from my reader survey, how to connect a data source to an AI agent. Reader requests are how I know what you want to read, so if you haven’t filled out the survey, although the prize drawing has ended, you can still potentially win something - an answer to your question. So let’s dig in with a bit of table setting first. Part 1: What is an AI Agent?I’ve written about this a bunch of times but it bears repeating: an agent is a piece of software that does something without you and returns its results to you. A real estate agent helps you buy or sell your home but does a lot of work without you, once they know your requirements. A travel agent helps you plan a vacation. An insurance agent sets you up with a policy. A Wifi negotiation agent on your phone connects you to a wifi network. Agents do stuff without you. Here’s how you know if you’re using an agent or not - after an agent has started a task, if you are still providing input, feedback, and steering throughout the process, it’s not an agent. Imagine a personal chef who was asking you at every step of the way how you wanted a step of the recipe cooked. That’s not an agent; an assistant, yes, an agent, no. If you give a personal chef a solid recipe, ingredients, a good kitchen to work in, and your preferences, the next thing that should happen is a plate of your food appearing in front of you. That’s an agent. In the AI Maturity Framework by Trust Insights, I detail 5 levels of AI:
When we talk about connecting agents to data sources, we are talking Level 3 and up. Part 2: What is a Data Source?Okay, this may seem silly, but it matters. When we say connect an agent to a data source, what do we mean by a data source? Remember that fundamentally there are two classes of data source, structured and unstructured. Structured data fits in tables and spreadsheets neatly, and is usable in those tools. Unstructured data doesn’t. For example, let’s say you have some customer satisfaction data. Some of it will be structured, like what rating someone gave you on a scale of 1 to 10. A spreadsheet filled with numbers is very clearly structured data because you can work with it in that environment. Some of it will be unstructured, like the free form responses people give. “I used your Turbo Ultra Vacuum to try vacuuming up the leaves in my 200 acre forested yard and it didn’t work, your product sucks, I want a refund” would be unstructured data. Knowing what kind of data you want to connect to an agent matters a lot because it will dictate how we get the data to the agent, and what the agent will need to do with it. The second thing that’s important to know is the difference between deterministic and probabilistic, fancy terms for “things that have no random chance” and “things that have random chance”. In general (and yes, there is nuance and variation), structured data tends to be deterministic which means you need non-AI tools to work with it. It often requires math, and AI isn’t great at math. In general, unstructured data tends to be probabilistic and ideal for AI to work with. AI can think through what a comment means, what topics or subjects it’s about, and even determine things like sentiment or emotional intensity. Beyond the kind of data you have, the even bigger question is how the data is available. I assume if the goal is to have an agent working with your data, then you’d probably not want to babysit the agent by hand feeding it data. Hand feeding animals is fun. Hand feeding agents is not. That means the data has to be available in some automated fashion, which can mean:
In general, an API is your best bet for data because AI is very good at writing code, and when you use code to extract data, you incur no AI usage. One of our overall goals is to only use AI for things it’s good at, so having regular code (deterministic) to extract data is the way to go. |