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← Glossary
Agents

What is tool calling?

Tool calling is how an AI agent takes action instead of only producing text. The model is given a set of tools — like search, a database query, or sending a message — and decides when to call one, with what inputs. The tool runs, returns a result, and the agent continues.

Tool calling is the mechanism that turns a language model from a text generator into something that gets work done. Without tools, a model can only talk about a task. With tools, it can actually do it.

How tool calling works

  1. The agent is given a list of tools, each with a description and expected inputs.
  2. For the current step, the model decides whether a tool is needed and which one.
  3. It calls the tool with specific inputs; the tool runs and returns a result.
  4. The agent reads the result and continues — often calling more tools until the task is done.

Standards like the Model Context Protocol make these tools reusable across agents and vendors, so you connect a system once.

Tool calling in Oido

Oido gives agents built-in tools plus any tool you connect through integrations and MCP. You control which tools each AI employee can use, and agents call them automatically as a task requires — on whichever model provider you run.

Frequently asked

What is the difference between tool calling and MCP?

Tool calling is the agent deciding to use a tool. MCP is a standard way to connect those tools so any compatible agent can use them. Tool calling is the action; MCP is the plumbing that makes tools reusable across agents and providers.

How does an agent know which tool to use?

Each tool comes with a name and description of what it does and what inputs it needs. The model reads these and picks the right one for the current step — the same way a person reads a menu of options.

Can tool calling make changes to my systems?

Yes, if you allow it. Tools can be read-only (look something up) or able to act (update a record, send an email). Good platforms let you control which tools an agent can use and add approval steps.

Related terms
agentic automationan AI agentthe Model Context Protocol (MCP)multi-agent orchestration
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