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How does LLM tool calling (function calling) actually work under the hood?

Tool calling powers every agent. The signal is knowing the model executes nothing: it emits a structured request your code runs, then you feed the result back. Here is the loop and the details that decide reliability.

Updated Aug 2026 · Grounded in real Applied AI Engineer interview loops and written to a senior-engineer editorial bar.

Tool calling powers every agent. The signal is knowing the model executes nothing: it emits a structured request your code runs, then you feed the result back. Here is the loop and the details that decide reliability.

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