Exploring the Landscape of Utility-Based Agent — Agentic AI

Chimauche Njoku
4 min readApr 13, 2024

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What is Utility-Based Agent

A utility-based agent is like a smart decision-maker that tries to make the best choices possible. It’s called “utility-based” because it decides what to do by thinking about which actions will lead to outcomes that are most useful or desirable.

Imagine you’re trying to decide what to eat for dinner. You might consider things like how tasty the food will be, how healthy it is, how much it costs, and how easy it is to prepare. These considerations represent the “utilities” of different options. A utility-based agent would weigh these factors and choose the option that maximizes overall satisfaction.

In technical terms, a utility-based agent is an AI system designed to prioritize decisions by maximizing a utility function. This function reflects the agent’s preferences for different outcomes, assigning numerical values to each potential state of affairs. The agent’s aim is to pick actions leading to states with the highest utility, aligning with its objectives or desired outcomes.

Here’s a simple example of a utility-based agent implemented in Python:

class Action:
def __init__(self, name, utility):
self.name = name
self.utility = utility

class Agent:
def __init__(self):
self.actions = []

def add_action(self, action):
self.actions.append(action)

def choose_action(self):
best_action = None
max_utility = float('-inf')

for action in self.actions:
if action.utility > max_utility:
max_utility = action.utility
best_action = action

return best_action

# Example usage:
if __name__ == "__main__":
agent = Agent()

# Define actions with their utilities
action1 = Action("Go left", 0.8)
action2 = Action("Go right", 0.6)
action3 = Action("Go straight", 0.7)

# Add actions to the agent
agent.add_action(action1)
agent.add_action(action2)
agent.add_action(action3)

# Choose the best action based on utility
best_action = agent.choose_action()
print("Best action:", best_action.name)

In this example, the agent has a list of actions, each associated with a utility value. The choose_action method selects the action with the highest utility and returns it.

Models of Utility-Based Agents

There are several models of utility-based agents, each with its own approach to decision-making and optimization. Here are some common models:

  1. Expected Utility Theory: This model assumes that decision-makers choose actions that maximize the expected utility, which is calculated by multiplying the utility of each possible outcome by its probability of occurrence.
  2. Multi-Attribute Utility Theory (MAUT): MAUT extends expected utility theory to situations where decisions involve multiple attributes or criteria. It allows decision-makers to explicitly consider trade-offs between different attributes and preferences.
  3. Decision Networks: Decision networks combine graphical models (like Bayesian networks) with utility functions to represent complex decision-making problems. They allow for probabilistic reasoning and decision-making under uncertainty.
  4. Markov Decision Processes (MDPs): MDPs model decision-making problems as a sequence of states and actions, where the outcome of each action depends on the current state and follows a probabilistic transition. Agents in MDPs aim to maximize the expected cumulative reward (which can be interpreted as utility) over time.
  5. Reinforcement Learning: Reinforcement learning is a machine learning approach where an agent learns to make decisions by interacting with an environment and receiving feedback in the form of rewards or penalties. The agent’s goal is to learn a policy that maximizes long-term cumulative rewards, effectively optimizing utility.
  6. Value Iteration and Policy Iteration: These are algorithms used to solve MDPs by iteratively improving the value function or policy until convergence. Value iteration computes the optimal value function, while policy iteration computes the optimal policy directly.
  7. Dynamic Decision Networks (DDNs): DDNs integrate decision networks with dynamic models to handle time-dependent decision-making problems. They are useful for modeling sequential decision processes where actions influence future states.

These models provide frameworks and algorithms for designing and implementing utility-based agents in various domains, ranging from economics and game theory to robotics and artificial intelligence. Each model has its strengths and weaknesses, making them suitable for different types of decision-making problems.

Applications of Utility-Based agents

Applications of utility-based agents are everywhere:

  1. Robotics: Robots use utility-based decision-making to navigate environments, perform tasks efficiently, and interact with humans.
  2. Business: Companies use utility-based models to make decisions about resource allocation, product development, pricing strategies, and more.
  3. Healthcare: Medical decision-making often involves balancing multiple factors like patient outcomes, costs, and available resources.
  4. Games: In video games and board games, AI opponents often use utility-based strategies to make challenging and realistic decisions.
  5. Finance: Traders and investors use utility-based models to make decisions about buying, selling, and managing financial assets.
  6. Traffic Management: Systems that control traffic lights or optimize transportation routes use utility-based approaches to minimize congestion and travel time.
  7. Personal Assistants: Virtual assistants like Siri or Google Assistant make decisions about how to respond to user requests based on maximizing user satisfaction.

In simple terms, a utility-based agent is like a smart helper that figures out the best thing to do based on what’s most important to you. Its applications are wide-ranging, from everyday decisions to complex problems in various fields.

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Chimauche Njoku

Senior Fullstack Engineer | Machine Learning | Data Analyst