In this episode of Buzz to Business, we unpack the core ideas from Sam Bhagwat’s Principles of Building AI Agents (2nd Edition)—a practical guide for anyone eager to understand how today’s most advanced AI systems are built. We explore how developers use Large Language Models (LLMs) as the foundation for intelligent agents, weaving together components like tools, memory, and graph-based workflows to enable reasoning and autonomy. You’ll learn how techniques like Retrieval-Augmented Generation (RAG) allow AI to access knowledge on demand, and why testing, observability, and industry standards such as the Model Context Protocol (MCP) are reshaping how teams build, trace, and deploy AI systems. Whether you’re an entrepreneur, educator, or curious technologist, this episode reveals how AI agents are moving from simple chatbots to dynamic collaborators driving the next wave of innovation.