Glossary

Tool Use

An LLM calling external functions to extend its capabilities.

Definition

Tool use — also called function calling — is the ability of a language model to decide it needs an external action (a database query, an API call, a calculator), structure the call, and then incorporate the result into its response. Tool use is what turns LLMs into agents.

Context

Modern enterprise AI relies on tool use as the bridge between the language model and the systems of record. Common tools include search, database queries, API integrations to CRM/ERP/EHR systems, code execution, and other LLMs. The Model Context Protocol (MCP) is an emerging standard for exposing tools to AI systems.