What's the difference? An AI agent is a loop-driven system that can decide which tool to call next, keep state across interactions, and adapt its behaviour. An automation is a fixed sequence of steps that runs the same way every time. In this guide you'll build both a plain n8n workflow that sends a prompt to OpenAI and stores the answer, and a full RAG-enabled AI agent that decides when to fetch documents, when to query the LLM, and when to respond. By the end you'll see why most teams over-engineer, and you'll have a production-ready example you can ship tomorrow.
Key insight: If your use-case requires conditional tool use, memory, or dynamic goal-setting, you need an AI agent; otherwise a straight automation is cheaper, faster, and easier to maintain.
What you need
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