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Discover the ins and outs of building AI agents. From boosting productivity to tackling complex tasks, learn how these digital assistants are reshaping business.

Building AI Agents: A Guide for Small Businesses

These days, everyone’s talking about AI. Building AI agents is about creating autonomous systems that can perform tasks, changing how businesses operate. This empowers small to mid-sized businesses to improve employee well-being and productivity, and achieve a better work-life balance.

This article explores building AI agents that truly benefit your business and your team.

Building AI Agents: A Step-by-Step Guide

Building AI agents involves data collection, model training, testing, and finally, deployment.

1. Define Your Agent’s Purpose

First, define your AI agent’s objective. What problems will it solve?

A customer service chatbot and a virtual shopping assistant have very different jobs.

List all desired functionalities and consider how this will change your existing needs.

2. Gather and Prep Your Data

An AI agent learns from data, much like training a pet.

Gather diverse language data like text messages, emails, and support tickets to demonstrate human conversation patterns.

Clean this data to remove confusing information and errors, and tag sentences with their intent. For example, “Schedule a meeting tomorrow” would be tagged with “scheduling.”

3. Pick the Right Model

An AI’s “brain” uses a machine-learning model.

Choose a model aligned with your goals.

Neural networks excel at understanding language, while reinforcement learning allows AI to learn from experience. Consider OpenAI’s GPT and Google’s BERT.

Fine-tuning on business-specific data enhances relevance.

4. Train the AI

This is the learning stage. Load data and divide it for training and testing.

Training establishes internal parameters like batch sizes and epochs.

Adjust features until you reach an acceptable loss value, and monitor for further performance optimization. This is commonly known as tuning the model.

5. Testing Time

Challenge your AI agent with diverse problems and check its accuracy and speed. Observe user engagement and feedback.

Thorough testing involves checking each component, gathering feedback, and performing A/B tests to identify weaknesses.

Be mindful of overfitting, where the AI struggles with new information. Iterate based on user feedback to improve flow and functionality.

6. Launch and Watch

Once deployed, continuously monitor performance in real-world scenarios.

Real-world data differs from training data, so address unexpected errors.

Gather customer suggestions and feedback through forms and dashboards to improve the AI agent’s capabilities.

Building AI Agents: Practical Considerations

Building AI agents involves both technical and philosophical aspects.

For example, consider your “economic moat,” or your unique offering compared to other companies. Around 75% of businesses struggle to build effective AI agents in-house.

Forrester predicts that by 2025, about two-thirds of businesses expect AI to boost output.

One-quarter develop AI to address HR limitations or reduce hiring costs.

An AI agent may not necessarily improve customer service alone. Even after training, performance may peak at approximately 80% accuracy. Avoid making assumptions based on social media hype and focus on actual development.

Agent Computer Interfaces (ACI’s)

How your agent interacts with external tools is crucial. Perfect internal design doesn’t guarantee real-world effectiveness.

Focus on human-computer interaction, just like you focus on human resource needs.

Ensure alignment between training inputs and agent calls during setup. LLMs may struggle with implicit relationships that are obvious to humans. This “obviousness” must be explicitly trained.

Thorough testing and prototyping are essential before user engagement and launch.

Building with Frameworks

Frameworks like LangGraph and Rivet can expedite development. However, they can introduce complexity and errors. Start with simple methods and APIs whenever possible.

Frameworks should be used only when necessary for more advanced features. Simple APIs reduce troubleshooting. Examples and tools based on the model-context protocol (MCP) offer valuable insights. Consider these before implementing complex frameworks to avoid human error and bugs during implementation.

FAQs about building ai agents

Can you build an AI agent?

Yes, various tools and frameworks are available for building AI agents. Some are no-code platforms.

Keep in mind that human desires and expectations continually evolve, leading to a constant drive for improvement.

What is the best tool for building AI agents?

The “best” tool depends on your specific project.

Several frameworks like LangChain’s LangGraph, Amazon Bedrock, Rivet, and Vellum aid building and deployment.

Start with simpler tools to validate product-market fit before implementing complex features. An iterative agile approach, incorporating feedback from stakeholders and user research, is more valuable than building internally only to discover deficiencies later.

What are the 5 types of agent in AI?

Four main types of AI agents are commonly discussed. Simple reflex agents react to current situations. Model-based reflex agents consider internal representations. Goal-based agents incorporate explicit goals into their decision-making. Finally, learning agents adapt and grow, changing weights through iterative updates, similar to stochastic gradient descent (SGD), allowing them to handle new scenarios.

How are AI agents developed?

AI agent development progresses from design and prototyping to testing and deployment.

Rigorous testing, including unit tests and user trials, is vital. The quality of training data significantly impacts the entire pipeline.

Effective human-AI interaction is essential for achieving the desired functionality. The goal is seamless understanding, like an “aha moment” where user intent is perfectly understood and acted upon.

Conclusion

Building AI agents is now accessible to businesses of all sizes. Each decision, from defining the agent’s purpose to tuning and launching it, shapes its integration into your business. Focus on your specific business case and use AI to solve existing problems.

Remember, your “moat” isn’t your agent’s abilities but your unique application of them. Large language models have greatly improved their understanding of complex topics and can perform tasks independently. However, current limitations still cap accuracy around 80%.

Building AI agents offers both advantages and shortcomings. AI tools can streamline workflows and enhance operational outcomes. However, complex projects might not have perfect, error-free solutions. Agent development requires careful planning, testing, and continuous improvement based on user feedback.

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Lee Pomerantz

Lee Pomerantz

Lee Pomerantz is the founder of eMediaAI, where the mantra “AI-Driven, People-Focused” guides every project. A Certified Chief AI Officer and CAIO Fellow, Lee helps organizations reclaim time through human-centric AI roadmaps, implementations, and upskilling programs. With two decades of entrepreneurial success - including running a high-performance marketing firm - he brings a proven track record of scaling businesses sustainably. His mission: to ensure AI fuels creativity, connection, and growth without stealing evenings from the people who make it all possible.

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Mini Case Study: Personalized AI Recommendations Boost E-Commerce Sales | eMediaAI

Mini Case Study: Personalized AI Recommendations
Boost E-Commerce Sales

Problem

Competing with giants like Amazon made it difficult for a small but growing e-commerce brand to deliver the kind of personalized shopping experience customers expect. Their existing recommendation engine produced generic suggestions that ignored customer intent, seasonality, and browsing behavior — resulting in low conversion rates and high cart abandonment.

Solution

The brand implemented a bespoke AI recommendation agent that delivered real-time personalization across their digital storefront and email campaigns.

  1. The AI analyzed browsing history, purchase patterns, session duration, abandoned carts, and delivery preferences.
  2. It then generated dynamic product suggestions optimized for cross-selling and upselling opportunities.
  3. Personalized recommendations extended to marketing emails, highlighting products relevant to each customer's unique shopping journey.
  4. The system continuously improved by learning from user engagement and conversion outcomes.

Key Capabilities: Real-time personalization • Behavioral analysis • Cross-sell optimization • Continuous learning from user engagement

Results

Average Cart Value

+35%

Increase driven by intelligent upselling and cross-selling.

Email Conversion

+60%

Lift in email conversion rates with personalized product highlights.

Cart Abandonment

Reduced

Significant reduction in cart abandonment, boosting total sales performance.

ROI Timeline

3 Months

The AI system paid for itself through improved revenue efficiency.

Strategy

In today's market, one-size-fits-all recommendations no longer work. Tailored AI systems designed around your customer data deliver the kind of personalized, dynamic experiences that drive loyalty and repeat purchases — helping niche e-commerce brands compete effectively against industry giants.

Why This Matters

  • Customer Expectations: Modern shoppers expect Amazon-level personalization regardless of brand size.
  • Competitive Edge: AI-powered recommendations level the playing field against larger competitors.
  • Data-Driven Insights: Continuous learning means the system gets smarter with every interaction.
  • Revenue Multiplication: Small improvements in conversion and cart value compound dramatically over time.
  • Customer Lifetime Value: Personalized experiences drive repeat purchases and brand loyalty.
Customer Story: AI-Powered Video Ad Production at Scale

Marketing Team Generates High-Quality
Video Ads in Hours, Not Weeks

AI-powered video production reduces campaign creation time by 95% using Google Veo

Customer Overview

Industry
Travel & Entertainment
Use Case
Generative AI Video Production
Campaign Type
Destination Marketing
Distribution
Digital & In-Flight

A marketing team responsible for promoting global travel destinations needed to produce a constant stream of fresh, high-quality video content for in-flight entertainment and digital advertising campaigns. With hundreds of destinations to showcase across multiple markets, traditional production methods couldn't keep pace with demand.

Challenge

Traditional production — involving creative agencies, travel shoots, and post-production — was costly, time-consuming, and logistically complex, often taking weeks to produce a single 30-second ad. This limited the team's ability to adapt campaigns quickly to market trends or seasonal travel spikes.

Key Challenges

  • Traditional video production required 3–4 weeks per 30-second ad
  • Physical location shoots created high costs and logistical complexity
  • Limited content volume constrained campaign variety and testing
  • Slow turnaround prevented rapid response to seasonal travel trends
  • Agency dependencies created bottlenecks and budget constraints
  • Maintaining brand consistency across dozens of destination videos

Solution

The marketing team implemented an AI-powered video production pipeline using Google's latest generative AI technologies:

Google Cloud Products Used

Google Veo
Vertex AI
Gemini for Workspace

Technical Architecture

→ Destination selection & campaign brief
→ Gemini for Workspace → Script generation
→ Style guides + reference imagery compiled
→ Google Veo → Cinematic video generation
→ Human review & approval
→ Deployment to digital & in-flight channels

Implementation Workflow

  1. The team selected a destination to promote (e.g., "Kyoto in Autumn").
  2. They used Gemini for Workspace to brainstorm and generate a compelling 30-second video script highlighting the city's cultural and visual appeal.
  3. The script, along with style guides and reference imagery, was fed into Veo, Google's generative video model.
  4. Veo produced a high-quality cinematic video clip that captured the desired tone and visuals — all in hours rather than weeks.
  5. The final assets were quickly reviewed, approved, and deployed across digital channels and in-flight entertainment systems.
Example Campaign: "Kyoto in Autumn"

Script generated by Gemini highlighting cultural landmarks, fall foliage, and traditional experiences. Veo created cinematic footage showing temples, cherry blossoms, and street scenes — all without a physical production crew.

Results & Business Impact

Time Efficiency

95%

Reduced ad production time from 3–4 weeks to under 1 day.

Cost Savings

80%

Eliminated physical shoots and editing labor, saving ≈ $50,000 annually for mid-size campaigns.

Creative Scalability

10x Output

Enabled production of dozens of destination videos per month with brand consistency.

Engagement Lift

+25%

Increased click-through rates on destination ads due to richer, faster content rotation.

Key Benefits

  • Rapid campaign iteration enables A/B testing and seasonal responsiveness
  • Dramatically lower production costs allow coverage of niche destinations
  • Consistent brand voice and visual quality across all generated content
  • Reduced dependency on external agencies and production crews
  • Faster time-to-market improves competitive positioning in travel marketing
  • Environmental benefits from eliminating unnecessary travel and location shoots

"Google Veo has fundamentally changed how we approach video content creation. We can now test dozens of creative concepts in the time it used to take to produce a single video. The quality is cinematic, the turnaround is lightning-fast, and our engagement metrics have never been better."

— Director of Digital Marketing, Travel & Entertainment Company

Looking Ahead

The marketing team plans to expand their AI-powered production capabilities to include:

  • Personalized destination videos tailored to customer preferences and travel history
  • Multi-language versions of campaigns generated automatically for global markets
  • Real-time content updates based on seasonal events and local festivals
  • Integration with customer data platforms for hyper-targeted advertising

By leveraging Google Cloud's generative AI capabilities, the organization has transformed video production from a bottleneck into a competitive advantage — enabling creative agility at scale.

Customer Story: Automated Podcast Creation from Live Sports Commentary

Sports Broadcaster Transforms Live Commentary
into Same-Day Highlight Podcasts

Automated podcast creation reduces production time by 93% using Google Cloud AI

Customer Overview

Industry
Sports Broadcasting & Media
Use Case
Content Automation
Size
Mid-sized Sports Network
Region
North America

A regional sports broadcaster manages hours of live event commentary daily across multiple sporting events. The organization needed to transform raw commentary into engaging, shareable content that could be distributed to fans immediately after events concluded.

Challenge

Creating highlight reels and post-event summaries manually was slow and resource-intensive, often taking an entire production team several hours per event. By the time the recap was ready, fan interest and social engagement had already peaked — leading to missed opportunities for timely content distribution and reduced viewer retention.

Key Challenges

  • Manual transcription and editing required 5+ hours per event
  • Delayed content release reduced fan engagement and social media reach
  • High production costs limited content output for smaller events
  • Inconsistent quality across multiple simultaneous events
  • Limited scalability during peak sports seasons

Solution

The broadcaster implemented an automated podcast creation pipeline using Google Cloud AI and serverless technologies:

Google Cloud Products Used

Cloud Storage
Speech-to-Text API
Vertex AI
Cloud Functions

Technical Architecture

→ Live commentary audio → Cloud Storage
→ Cloud Function trigger → Speech-to-Text
→ Time-stamped transcript generated
→ Vertex AI analyzes transcript for exciting moments
→ AI generates 30-second highlight scripts
→ Polished podcast ready for distribution

Implementation Workflow

  1. Live commentary audio was captured and stored in Cloud Storage.
  2. A Cloud Function triggered Speech-to-Text to generate a full, time-stamped transcript.
  3. The transcript was sent to a Vertex AI generative model with a prompt to detect the top 5 exciting moments using cues like keywords ("goal," "crash," "overtake"), exclamations, and sentiment.
  4. Vertex AI generated short 30-second highlight scripts for each key moment.
  5. These scripts were converted into audio using text-to-speech or recorded by a human host — producing a polished "daily highlights" podcast in minutes instead of hours.

Results & Business Impact

Time Savings

93%

Reduced highlight production from ~5 hours per event to 20 minutes.

Cost Reduction

70%

Automated workflows cut production costs, saving an estimated $30,000 annually.

Fan Engagement

+45%

Same-day release of highlight podcasts boosted daily listens and social media shares.

Scalability

Multi-Event

System scaled effortlessly across multiple sports events year-round.

Key Benefits

  • Same-day content delivery captures peak fan interest and engagement
  • Smaller production teams can maintain consistent output across multiple events
  • Automated quality and formatting ensures professional results at scale
  • Reduced time-to-market improves competitive positioning in sports media
  • Lower operational costs enable coverage of more sporting events

"Google Cloud's AI capabilities transformed our production workflow. What used to take our team an entire afternoon now happens automatically in minutes. We're able to deliver content while fans are still talking about the game, which has completely changed our engagement metrics."

— Head of Digital Content, Sports Broadcasting Network