Tool Calling and Function Execution in LLM Agents

Published on October 8, 2025

Tool calling is one of the most important capabilities of LLM Agents, transforming them from pure text generators into intelligent systems capable of executing real-world actions.

What is Tool Calling?

Tool calling allows LLMs to identify when external tools are needed and generate correct function call parameters. This process typically includes:

1. LLM understands user intent
2. Selects appropriate tools
3. Generates function call parameters
4. Executes tools and retrieves results
5. Integrates results into the response

Function Calling Implementation

Modern LLMs (such as GPT-4, Claude) natively support function calling. Developers need to provide tool descriptions:

{
  "name": "get_weather",
  "description": "Get weather information for a specified city",
  "parameters": {
    "type": "object",
    "properties": {
      "city": {
        "type": "string",
        "description": "City name"
      }
    },
    "required": ["city"]
  }
}

The LLM decides whether to call the function based on conversation context and generates structured call requests.

Tool Design Best Practices

Clear Descriptions: Enable the LLM to accurately understand tool purposes and use cases.

Explicit Parameters: Define parameter types, required fields, and default values.

Error Handling: Return clear error messages to help Agents adjust strategies.

Idempotency: Same inputs should produce same results, avoiding side effects.

Common Tool Types

Information Retrieval: Search engines, database queries, API calls

Data Processing: Calculations, format conversions, data analysis

External Operations: Sending emails, creating files, calling third-party services

Code Execution: Running code in sandboxed environments

Challenges and Solutions

Main challenges in tool calling include:

Hallucination Issues: LLMs may generate non-existent tools or incorrect parameters. Solution: Strict output format validation.

Performance Overhead: Each tool call requires additional LLM inference. Can be optimized through batch processing and caching.

Security Risks: Need to limit tool permissions and implement sandbox isolation.

Mastering tool calling is key to building practical Agents. In the next article, we'll explore multi-Agent collaboration systems.

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