A hosted agent — Claude Code, ChatGPT's agent mode, Cursor — doesn't just answer once; it runs a loop: plan, act, observe, adjust, repeat, until it decides the task is complete or it hits a wall. This is fundamentally different from a chat exchange, where you ask and it answers once. The loop means the agent can course-correct mid-task based on what it observes, which is both the power and the risk.
Understanding the loop changes how you interact with it: instead of crafting one perfect prompt, you're setting up a good starting brief and then supervising a process that unfolds over minutes, not seconds.