Generative AI
A model that produces new content in response to a prompt. It answers, and stops.
- Output: text, images, code, audio, video
- Started by a person’s prompt
- One response per request
- A person decides what to do with it
Generative AI produces content when asked. Agentic AI uses that same generative model to pursue a goal across many steps — reading, calling tools, checking and acting.
Every agent today runs on a generative model; what makes it agentic is the loop, the tools and the permission to act that are built around that model. This guide defines both precisely, shows the loop step by step, works one example through both, and sets out the risks that appear once AI can act.
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Generative AI is AI that creates new content — text, images, code, audio — from a prompt. Agentic AI is a system that pursues a goal on someone’s behalf: it plans steps, calls tools and APIs, checks the results and keeps going until the task is done. In agentic AI vs generative AI, the generative model is the engine and the agent is the vehicle built around it: agentic AI adds a loop, tools, memory and the permission to act.
NIST’s Generative AI Profile (AI 600-1, July 2024), quoting a 2023 US executive order, defines generative AI as models that “generate derived synthetic content”. Google Cloud defines AI agents as software that uses AI “to pursue goals and complete tasks on behalf of users”. The rows below follow from those two definitions.
A model that produces new content in response to a prompt. It answers, and stops.
A system that uses a generative model to decide and take the next step toward a goal, many times over.
A generative model on its own predicts the next piece of content. An agent wraps it in a loop: the model proposes a step, software runs it, the result goes back to the model, and the loop continues until a stopping rule is met. ReAct, published in October 2022, showed that interleaving reasoning with actions this way outperformed imitation- and reinforcement-learning methods on interactive tasks.
Back to the plan with what the last step returned — until the goal is met, a person must decide, or a stopping rule ends the run.
The model never runs the tool itself. In function calling, the model returns the name and arguments of a tool; the application executes it and sends back the result. That is why what the application allows decides what an agent can do.
The generative model came first; the agent pattern followed once models could reliably choose tools and a standard appeared for reaching them.
A supplier emails: “Please pay our next invoice to the new bank account below.” It is a routine request and a well-known fraud pattern.
The email arrives in the payables mailbox.
Finds the supplier and its bank details on record.
Sees a changed account and a sender domain that differs by one letter.
Holds the next payment and opens a call-back check.
Keeps each step and the reviewer’s decision with the run.
Both used the same kind of model to read the email. The agent differs because it was given tools to look things up, a rule that payment changes wait for a person, and a record of what it did.
The forecasts are large and the warnings are blunt. Read them together: most organisations are experimenting, and many projects will be stopped before they pay off.
Agent washing. Gartner’s term for chatbots, assistants and robotic process automation rebranded as agents. The test is simple: does the model choose and take steps toward a goal, or does it only generate a reply?
Generative AI risks are about content: wrong, invented or harmful output. Once AI acts, the risks are about actions. Each one needs a control that sits outside the model.
Most work needs both: a generative step to read or write, inside an agent or a workflow that decides what happens next. Ask what should happen after the model has spoken.
After the model produces its output, what happens?
On Botminds, the same agent can answer in a moment or plan and act over many steps. The agent harness decides what the model sees and what it may touch, whichever way it runs.
See the agent harness for the full design, and agent varieties in the Academy for when to use each kind of agent.
In agentic AI vs generative AI, generative AI creates content from a prompt and stops. Agentic AI uses a generative model inside a loop to pursue a goal: it plans steps, calls tools, checks results and acts in systems until the task is done.
ChatGPT began in November 2022 as a generative AI assistant. Features that let it browse, run code or take actions with tools add agentic behaviour on top of the same generative model. Whether a given use is agentic depends on whether the model chooses and takes steps toward a goal.
Agentic AI is built on generative AI. The language model inside an agent is generative; the agent adds the loop, the tools, memory and permission to act. You can have generative AI with no agent, but today’s agents all use a generative model.
An agent that triages supplier emails and holds suspicious payment changes for review; one that reconciles invoices against purchase orders; a research agent that searches, reads and cites sources; a support agent that looks up an order and issues a refund within policy.
Predictive AI estimates a value or class from data — a fraud score, a demand forecast. Generative AI creates new content. Agentic AI acts toward a goal, and may use both: a prediction to decide, generation to write.
Its risks are different. Generative AI can produce a wrong answer; an agent can take a wrong action, and repeat it. Agents therefore need tool permissions, approvals before changes, stopping rules and a record of every step.
Agent washing is Gartner’s term for rebranding chatbots, assistants or robotic process automation as agentic AI without real agentic capability. Gartner estimated in 2025 that only about 130 of thousands of vendors offered genuine agentic AI.
Not always. If a person reads the output and decides, generative AI is enough. Agentic AI pays off when the next step depends on what the model finds and the work crosses several systems.
Bring one process and its documents. We’ll show you the agents, the controls and the record, running on your data.