ModelRefs / Tool Use — AI Glossary

Tool Use — AI Glossary

An agent capability where an LLM invokes external functions, APIs, databases, or code interpreters to extend its native abilities.

Overview

Tool use is how LLMs overcome their lack of real-time information, math reliability, and side-effect execution. Common tools: web search, code interpreter, database query, vector search, file I/O, API calls. Enabled by function calling APIs.

Reference details

Topicagents
Also known asfunction calling, tool calling
Last reviewed2026-06-24

How it works

  1. A tool reaches the model as a name, a description, and a typed parameter list, so the description is the entire basis on which the model decides whether the tool fits.
  2. That makes the description an interface specification rather than documentation: a vague one produces wrong tool selection in a way no amount of model capability compensates for.
  3. The result must come back as text the model can read, which means a tool returning a status code or an opaque handle has to be wrapped before it is useful.
  4. Errors are returned as content rather than raised, because the model can respond to a traceback it can see and cannot respond to an exception the harness swallowed.
  5. The model observes only what the result says, so a side effect that succeeded silently is indistinguishable to it from one that never ran — which is why confirmations have to be in the returned payload.
  6. Nothing in the mechanism authenticates or bounds anything: the model produces a request to act, and every permission, rate limit and approval sits in the harness that decides whether to honour it.

Example: Where the model stops being able to guess

Ask a model for the 14th root of 892,371 and it will produce a confident, usually wrong number, because it is predicting digits. Give it a calculator tool and it emits pow(892371, 1/14), gets 2.534…, and reports that. The model did not get better at arithmetic; it stopped doing arithmetic.

Commonly confused with

Tool use is the capability; function calling is the interface that exposes it. A model can use tools through several mechanisms — a tool-calling API, MCP, or plain code generation that your runtime executes — and function calling is only the most common one.

When to use it

Reach for it when:

  • Exactness matters and the model is unreliable: arithmetic, dates, lookups
  • The information postdates training, or is private to your tenant
  • The task has a real-world effect — sending, writing, booking

Reach for something else when:

  • The model already knows the answer well; a tool adds latency and a failure mode
  • You cannot authenticate or rate-limit the tool being called
  • The tool's output is untrusted text that flows straight back into the prompt — that is the prompt-injection path

Referenced by

This term is used by the following ModelRefs references:

Continue your research

Use these connected ModelRefs sections to compare alternatives, inspect implementation paths, and review the evidence and governance boundaries relevant to Tool Use — AI Glossary.

Frequently asked questions

What is Function Calling?

A model capability that emits structured JSON to invoke external tools or APIs instead of free-form text.

Is Function Calling the same as tool calling?

Yes — tool calling, tool use API are common aliases for Function Calling.

What concepts are related to Function Calling?

Closely related concepts include tool use, agent, mcp, json mode.