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Tool Use

AI models calling external functions and APIs

The ability of AI models to call external functions, APIs, or tools during generation to accomplish tasks beyond pure text output. An LLM with tool use can search the web, run code, query databases, send emails, or interact with smart contracts. This transforms AI from a text generator into an action-taking system — essential for building AI agents that actually get things done in Web3 and beyond.

Related terms

AI Agents

Autonomous AI that plans and executes tasks

MCP (Model Context Protocol)

Open standard connecting AI to external data and tools

Automation

Eliminating repetitive tasks with tech

LLM (Large Language Model)

AI models that understand and generate text

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