Action-Observation Loop

Domain: Prompt Engineering

🎯 Motivation

In ReAct, the model takes an action, observes the result, then reasons about what to do next. This loop continues until the task is done.

πŸ“‹ Concrete Example

Loop: 1) Think: β€˜Need stock price.’ 2) Act: get_stock(AAPL). 3) Observe: β€˜$185.50’. 4) Think: β€˜Price is up 2%. Now summarize.’ 5) Act: respond. The loop drives the agent forward.

πŸ”— Analogy

A scientist running experiments - hypothesize (think), experiment (act), observe results (observe), hypothesize again. The action-observation loop is the scientific method applied to AI agents.