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Building Your Own AI Agent: A Step-by-Step Guide πŸ€–

AS

Arti Sikhwal

May 12, 2026 β€” 8 min read

Artificial Intelligence Concept

"In this workshop, Data Scientist Arti Sikhwal walks us through the practical process of building a private, local AI agent. By utilizing open-source tools like Ollama and AutoGen, developers can create intelligent, collaborative systems without relying on expensive APIs or compromising data privacy."

Understanding the Basics: AI, LLMs, and Agents

To build an effective agent, it is important to distinguish between the core technologies involved:

The Toolkit: Powering Your Local Agent

To ensure privacy and reduce costs, this project relies on two primary frameworks:

Ollama

An open-source tool that allows you to run LLMs locally on your own hardware, eliminating the need for constant GPU access or expensive cloud subscriptions. (4:01)

AutoGen

A framework by Microsoft that makes it easy to build collaborative multi-agent systems and register custom tools. (8:57)

Designing the Agentic Workflow

Building an AI agent is essentially about providing it with Toolsβ€”APIs or functions that give the model access to real-time information, such as current weather data, news, or calculators. (9:12)

Key Components:

Implementation Highlights

1. Registration

Tools like Search News, Weather API, and Get Current Time are registered so the agent knows exactly how to invoke them when queried. (22:00)

2. Execution

Using user_proxy.initiate_chat, the agent processes the user query, calls the appropriate tools, and consolidates the outputs into a final, human-readable response. (23:30)

3. Deployment

Once the logic is defined using FastAPI, the agent can be accessed via a local URL and integrated into any front-end, including web apps or XR environments. (25:37)

Conclusion

Building your own AI agent is a powerful way to bring automation and intelligence into your applications while keeping data local. Whether you are creating a single specialized assistant or a complex team of collaborative agents, the combination of Ollama and AutoGen provides a flexible and private foundation for innovation. (28:41)

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