Introducing Xano Agents: The Next Step in Building Intelligent, Agentic Backends

Agents are transforming the way modern backends are built, from enabling users to interact with your app through natural language to embedding fuzzy logic into workflows that adapt to dynamic conditions. They’re not just tools to generate responses. They’re reasoning partners, operational accelerators, and context-aware collaborators.

And now, with Xano’s new Agent feature, we’re giving you everything you need to create backends that are intentionally designed to support AI systems as active participants.. It’s a new development paradigm we call "build for AI," where you structure your architecture, tools, and interfaces so that AI can understand, discover, and interact with them, treating AI as a core consumer of your system.

In this post, we’ll explore:

• What AI Agents actually are (beyond the buzzword)
• Why you should think about both Human Interactive and Workflow Embedded Agents
• How Agents work in Xano
• How to use them in your backend logic (API Endpoints, Database Triggers, MCP Tools, and more)
• The power of network effects with specialized Agents
• Why AI security, guardrails, and data access control matter more than ever

Let’s unpack what’s behind this new era and how to make it real in your backend stack.

What Are AI Agents?

At their core, AI Agents are LLM-powered entities that can observe, reason, and act. They go beyond generating a single response to a prompt. They decide on the actions to take and autonomously execute logic within the context of a defined goal or policy.

Unlike simple chatbots, Agents:

• Operate on behalf of users or systems
• Choose from multiple available tools or pathways
• Maintain awareness across the steps in a task
• Rely on fuzzy logic instead of rigid decision trees
• Require different compliance guardrails within the backend infrastructure.

Agents aren't just assistants. They're collaborators.

To collaborate effectively, they need access to your backend, including your workflows, data, logic, and systems.

Two Kinds of Agents, One Agentic Backend

There are two main ways developers are embedding Agents into systems today:

1. Human Interactive Agents

These are Agents that users talk to, think chat-based interfaces, application side panels, or even Slack bots. They interpret user prompts and trigger logic within your app:

• “Cancel my last order.”
• “Update the status on this ticket.”
• “What’s our customer churn for this month?”

They serve as natural language interfaces to structured systems on your backend.

2. Workflow Embedded Agents

These Agents don’t interact with users directly. Instead, they’re embedded within your backend logic to:

• Handle non-prescriptive edge cases
• Apply fuzzy logic to policy rules
• Dynamically select from a library of tools
• Navigate complex decision trees based on real-time conditions

Instead of you writing 100 conditional branches, a Workflow Agent can reason through context and pick the right course of action.

And the best part? Xano lets you use both types of Agents, side by side, hierarchically, or collaboratively.

Xano Agents: Built for AI-Driven Logic

Xano’s Agents are now available as a core part of our "Build for AI" feature set. Think of an Agent in Xano as a configurable connection to a Large Language Model (LLM) capable of choosing the appropriate tool to:

• Execute Custom Functions
• Call internal or external APIs
• Read from or write to your Xano Database
• Interface with external databases
• Invoke your remote MCP Tools

Each Agent is securely scoped and fully configurable within your Xano Workspace. Once defined, an Agent becomes available in any Function Stack across your workspace. This means you can use it anywhere:

• API Endpoints
• Database Triggers
• Scheduled Tasks
• Custom Functions
• MCP Tools

You describe what you want the Agent to do, connect your custom Tools, configure its prompt behavior, and let it handle the edge cases that previously required verbose if-else logic.

Want an Agent to handle refund logic that considers policy, purchase history, and exception criteria? You don’t need to script every branch. You describe the goal, connect the tools, and let the Agent decide.

Real World Example: Dynamic Customer Resolution

Let’s say you’re building a customer support system. Traditionally, you'd handle refund requests like this:

1. Check order status.
2. Look up refund policy.
3. Validate refund eligibility.
4. Apply refund or escalate.

But there are edge cases:

• Did the customer get partial delivery?
• Were they flagged by fraud protection?
• Was this their third support ticket this week?

Instead of encoding every policy exception into your logic, you embed an Agent in your Function Stack:

The Agent uses the custom Tools you provide to fetch data, interpret policies, apply fuzzy logic, and then returns:

• An action recommendation
• A rationale for audit logs

All triggered as part of your existing backend flow.

Network Effects: Specialized Agents for Specialized Jobs

One of the most exciting possibilities of Xano’s Agent model is the network effect of specialization.

Just as developers create specialized microservices, you can now build specialized Agents:

• Finance Agent: Handles nuanced tax compliance workflows.
• Policy Agent: Interprets ever-changing rule sets for healthcare, HR, or compliance.
• Fraud Agent: Evaluates anomalies and initiates investigations based on evolving threat signals.
• Sales Agent: Pulls lead scores, enriches CRM records, and recommends outreach steps.

Because Agents are connected to Xano-built Tools, you can fine-tune access:

• Restrict which databases or API endpoints each Agent can use
• Limit what instructions or data each Agent sees
• Provide predefined prompts that act as a “job description” for the Agent

This isn’t just better logic, it’s better security, better reuse, and better outcomes.

Security, Guardrails, and the New AI Surface Area

Agents are powerful, but they introduce new risks. When you let an LLM make decisions or interpret natural language, you need strong controls.

That’s why Xano integrates:

• Scoped execution: Agents can only invoke functions or access data they’re authorized for
• Role-based access: Define what resources each Agent can call
• Transparent audit logs: Capture reasoning and actions taken
• Configurable prompts: Hard-code policy logic or guidance
• Agent Isolation: Each Agent is a distinct entity with its own configuration

Want to go deeper into securing AI agents? Watch our recent webinar on AI Security in Backend Systems.

Watch the AI Security Webinar Replay →

As more businesses adopt LLMs, security isn’t optional; it’s foundational.

Why AI Agents Matter for Backend Builders

Here’s the big shift:

• Yesterday, Developers wrote logic for every possible case to preempt exceptions.
• Today, Agents augment existing workflows and user experiences.
• Tomorrow, AI agents will become the main way that we handle business logic.

If you’re building a platform, a tool, or an operational system, you’ll need to work with Agents. The question is: do you build from scratch, or start with a platform that’s AI-ready?

Xano: The Backend That Builds AI With You

Xano was built to help you create powerful backends without the complexity of traditional development. Now, with Agents, that power is amplified:

• Build workflows that adapt to dynamic business needs
• Accelerate development without sacrificing flexibility
• Offload complex decision-making to configurable logic agents
• Ensure data security and compliance in every interaction
• Use your own Tools and MCP integrations as the foundation for AI-driven operations

This isn’t a lab experiment. It’s about shipping agents today.

You can start using Xano Agents now. Select an LLM, define your Agent, connect your Tools, and insert it into any Function Stack. Whether you’re building SaaS platforms, internal tools, or microservices for other apps, Xano is your partner in building an intelligent, agentic backend.

Ready to Build for AI?

Explore the documentation: Getting Started with Xano Agents

Watch the feature in action: Summer Launch Event

Need help configuring your first Agent? Register for our office hours

AI isn’t just a frontend revolution. It’s a backend transformation. And with Xano, you’re ready to lead it.

Welcome to the era of agentic backends. Let’s build.