243 - Agent Builder is Here! What Does it Do? with Elizabeth Knopf

13 Oct 2025 · 42 min · 17 chapters

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In short

OpenAI Agent Builder—how to build “agentic” workflows (autonomous AI that uses tools, memory, and decision-making) versus static if/then automations; demoing setup, guardrails, API usage, and UI embedding via widgets.

Guest background

Elizabeth Knopf, described as an “amazing teacher” who walks through Agent Builder step-by-step; she builds and demos business automation/agent use cases.

Key claims

Agent Builder is intended to make it easier to build agents for non-technical business owners, similar to Zapier-style templates and drag-and-drop workflows. Pricing is usage-based because agents trigger many API/tool calls. Agents are more powerful but less consistent than strict step-by-step automations, and tool integration can be frustrating.

Notable examples

A research agent that finds Georgia-licensed trade schools and extracts registered agent/owner info from state sources; a sentiment demo for “Agent Kit” on X using an RSSHub-style workaround (since no free X API).

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

Tap a time to open that second in VO

Understanding Agents vs. Automations

1:16 to 3:40

Explaining the distinction between agents and traditional automation workflows.

“But before we get there, Liz, I'm going to say my first question.”

How to Build an Agent with OpenAI

3:40 to 5:46

A walkthrough of using OpenAI's Agent Builder to create an AI agent.

“They have a hard enough time building a workflow.”

The Cost of Using OpenAI's API

5:46 to 7:40

Discussion on the pricing model of OpenAI's API and usage-based costs.

“I've run up, this is, I would say for 88 requests, $1.60, which actually in my mind is a bit expensive.”

Understanding API Calls and Usage Fees

7:40 to 8:20

Explaining how API calls work and the associated costs with using them.

“of that, you're executing a lot of calls.”

Exploring Templates and Use Cases

8:20 to 10:48

Overview of templates available in Agent Builder and their practical applications.

“One other just sort of nuance there that you were highlighting, but I want to make explicit, it's because also you're automating things.”

Building a Research Bot

10:48 to 14:00

Demonstration of creating a research bot using Agent Builder to gather data.

“Like they wouldn't have those on there unless those were the most likely things for people to go and try and use that.”

Data Enrichment with Research Bots

14:00 to 18:20

Explore how to create a research bot for business data enrichment.

“What I've been doing recently is I've been going to state websites to research business owners where they file for their registered agent.”

Podcast Social Contract Reminder

18:20 to 18:55

Hosts remind listeners of their social contract for reviews and support.

“Hey, I don't know if you remember this, but when we started this podcast, we entered into a social contract.”

Live Demo of Agent Capabilities

18:55 to 23:08

Demonstrating how agents can retrieve and process business information.

“Okay, so it gave me a bunch of extra stuff too.”

Understanding Agents and Guardrails

23:08 to 28:00

A deep dive into the workings of agents, including guardrails and their functions.

“Every time we get on here, she's like, oh, you're going to think this is stupid because it's kind of like old.”
Show all 17 chapters

Understanding Prompt Injection

28:00 to 28:40

Learn about the potential pitfalls of prompt injection in AI agents.

“rails, so meaning there wasn't the PII, someone's not doing prompt injection, then continue forth.”

API Research for Agent Building

28:40 to 29:47

Discover the importance of selecting the right model and instructions for agents.

“So let me sort of break down what's here because this is now we're talking agents, which again is that first core node up here.”

Defining Agent Instructions

29:47 to 30:42

Explore how to effectively set instructions for AI agents to ensure proper functionality.

“describe the model behavior, tone, tool, usage, response, style.”

Workflow of an AI Agent

30:42 to 35:15

Understand the process of how an AI agent gathers information and synthesizes answers.

“Okay, so like I told it what its job is.”

Agent Builder vs. Other Tools

35:15 to 39:51

Compare the new Agent Builder with existing automation tools and their functionalities.

“Because it's an agent, it's going out and doing something.”

Differentiators in Agent Building

39:51 to 41:17

Learn about the unique features of the Agent Builder, including UI and file access.

“there yet yeah it seems to me like the bottom line is their user base probably like doesn't use Zapier or Lindy or these other builders.”

The Importance of Reviews for Podcasts

42:00 to 42:24

Learn how leaving reviews can increase a podcast's visibility and reach.

“What that does is it tells the algorithm that, oh, hey, this is a high value podcast because more people are leaving reviews for it and it then pushes it out to more people.”
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Transcript

Automatic transcript. May contain errors.

0:00You've heard about OpenAI's newest creation, which are agent builders. Sometimes I actually think they're overrated, but at the same time, there's a potential when you give it proper instructions. You can really see a lot of magic happen. Business owner who knows nothing about technology, how do they go and build an agent? Here's a business opportunity for anyone who wants to say, hey, which use case should I build? Pick one of these and get started. It's like Zapier. They have pre-built automations or workflows. This is so interesting. It's like this amalgamation of lovable replet, you know, no code solutions, but also the automation tools like Zappi or N8N and Make.

0:34Interesting. These five, six things are the best use cases for AI right now.

0:42All right, unless you've been living under a rock like me, you've heard about OpenAI's newest creation, which are Agent Builder. So I think what will be really important first is to set the context of what problem is OpenAI solving in creating Agent Builder. And then we want to walk through a demo of actually using Agent Builder, showing you where to go within Agent Builder to build out your first agent. Liz has done that, and Liz is an amazing teacher, so we're going to go through step by step. And by the end of this conversation, you will have a very clear idea of what agent builder is, how you can utilize it in your business and how you can go and actually build your first agent.

1:16But before we get there, Liz, I'm going to say my first question. Can we briefly just give an overview? What is an agent and why is everybody talking about agents? So an agent really consists of a few different core components. And usually when people talk about agents, oftentimes they get it confused with something called a workflow or an automation, which is basically that is saying step one in a process, then you go to step two, step three, step four, passing different tools. What an agent does, it allows autonomy for combining AI to access something called tools, which are like software essentially, other software tools, have some kind of memory so it remembers what it's doing, and then be able to actually make decisions on what it's doing.

2:03So there's more inconsistency when it comes to agents. And sometimes I actually think they're overrated, but at the same time, there's a potential when you give it sort of enough context or enough rules, and you really are able to iterate through giving it the proper instructions, and you have an understanding of what to expect, you can really see a lot of magic happen with agents? I'll give you just one quick example. So here is what an agent, an agentic workflow might look like versus an automation. An automation would be, I am a plumbing company and I get a call after hours at requesting a quote.

2:39The call comes in, my phone screens it, and there's a clear rule that says, if it's during business hours, send it here. If it's after business hours, send it here. And then it sends it maybe to a voicemail, maybe to something else. And then that triggers, hey, if there's a new voicemail, go and check it and put it into this spreadsheet, right? It's very if then. There's no context. There's no analysis. It's very static. If then. An agentic workflow might be if an after hours call comes in or a text comes in, send it to our AI agent and they will actually talk to the person on the other end and make decisions based on context.

3:15Oh, hi, can I help you? Yes, I'm looking for a quote. Okay, let's talk about that quote. What are you looking for? So the agent on the other end is utilizing AI to actually process and reason through the question that's on the other end. It's not a static if then. It's actually taking context in. And the problem is that agents, what I just described there, it's hard to build. Like how does a business owner who knows nothing about technology, how do they go and build an agent? They don't. They have a hard enough time building a workflow. and supposedly with this OpenAI agent builder, it's making it easier.

3:48I mean, is that basically the idea is OpenAI is making it easier for us to build agents? Yes, and I'll say that supposedly. We'll see by the end of this. All right, can we see the interface? Can you share your screen and just show, like walk us through, where do we go? Do we just go to ChatGPT and it's a dropdown option or like how exactly do we? Okay, it is in a special place. So if you've never sort of heard about an API, which is basically hooking into the behind the scenes and having these systems sort of pass data back and forth, OpenAI has an API, which is where we are right now. It's called platform.openai.com slash playground.

4:33So that's the URL that you're going to want to go to. I can't remember since I've had this for a while. I don't know if there's some setup involved, but basically you'll be able to add different projects and workspaces. And then you'll have on the left-hand side here, a bunch of different things you can build. So in the past, if you've heard about assistants, which are basically like little chatbot tools that have specific files associated with them or even code and functions, this is where you could have built those. And those are slightly different than custom GPTs. Again, these would be hooking into other workflows or other tools and systems and software.

5:06Do I need any level of membership for that? Is this access for free? Do I have to have it like the pro? This is all usage-based. So that's like the good news of it. But having gone through the pain of this, make sure whenever you're using this stuff, you know what model you're using because they cost different amounts of money. And I have accidentally ran through like a couple thousand rows of a spreadsheet to like do quick things using the latest model running up a ridiculous bill. So just make sure you, when you go through any of this, you know what model you're using. So like for instance, yesterday, or actually in the last couple of days, I've been using GPT-5.

5:47I've run up, this is, I would say for 88 requests, $1.60, which actually in my mind is a bit expensive. So I could probably change the model I'm using to be more efficient with the cost. And can you help people understand why OpenAI would go to a usage model here versus their like monthly subscription model on just chat tpt yep okay so for them and for most ai companies there's a better correlation with usage back in the day with software it was great because you built code it didn't really sort of suck more energy or cost associated with a company based on you build it you use the code yeah you have some infrastructure and hosting another sort of cost associated with it but for every sort of new login it really didn't cost that much more to use it with ai it's totally different their cost basis is really expensive because they're consuming a ton of energy to basically use these massive amounts of data from their vector databases to make all these connections and get you the output you want.

6:49And so because it's really expensive, it makes a lot more sense from a company standpoint to associate it with the usage versus saying like for this flat fee, use that much because then people would be basically hitting the limits and they'd be losing a ton of money. So the only thing I would add to that is saying like if you go to chat GPT and you ask a question, it goes to the model. And so think of like your question traveling through the air, going through the model as an API call. The API is lubricating the transportation network for your question. When you're building an agent, you're not just asking open AI a question.

7:24You want that agent to go do something. You want it to look at your CRM or you want it to look at some website or you want it to look at your financial statements or like there's multiple places that it has to go. And so every place that has to go requires is lubricating those transportation systems, that API. And so because of that, you're executing a lot of calls. Just the nature of an agent is utilizing these API calls. So they're now charging us on a per call basis as opposed to a monthly subscription because if it was just like you said, if it was just a monthly subscription, you could blow past the average number of API calls if you are, hey, I've got 10 ,000 news articles.

8:01I'd like you to analyze each one of them and tell me, you know, these things, that's going to be a lot of back and forth that OpenAI is actually calling and then computing. So as you're thinking about it, listener, think of the usage as just kind of the fee to pay for the toll road effectively of these APIs. Exactly. And I like that, the toll and the fee. One other just sort of nuance there that you were highlighting, but I want to make explicit, it's because also you're automating things. And so obviously when you're automating it, it can run a lot more like those 10 ,000 articles versus if you're sitting at the computer doing your chats like you do with the normal chat GPT interface.

8:42That's a great point. Your recommendation is the time spent in the computer. I've been working on a news aggregator. And every 30 minutes, it goes and checks the RSS feed of where it's pulling from to see if there's any new updates, right? So if you're every 30 minutes having an API call, that can add up really quickly. So anyways, okay. So we're on platform.openai.com slash playground. Yep. And so then on the left-hand side, you'll see the second under the chat, you'll see, which by the way, if people don't know, this is a place you can have a bunch of your create chat prompts in here. Okay. Anyways.

9:20Okay. So you have this little thing called agent builder. Now, if you're just getting started, I would go to templates just to start. So you sort of get your bearings. So why don't we open up a template and then - Will you - Hold on. Hold on. Before you open up a template, will you just stay on that? Yes. Well, I was going to just look at this. There are some kind of already pre-built templates in here. Data enrichment, planning helper, customer service, structured QA, document. There are the things that I'm reading. I don't know what's on your screen at the moment, but these are all just like recommended.

9:51You could click into any one of these and start just playing around, I'm assuming. Yep. So I just clicked into one. These are all templates? Yep. This is a template. So this helps. This is your internal knowledge base. So it basically gives you the logic and you just have to hook it up. So the hooking up part is still a little bit challenging, but at least you have a sense of like, okay, rather than a blank slate, what do I do? What are all these things on the left? Like what do I do? You can start from somewhere. And these are very common pieces. So data enrichment, obviously we all have leads.

10:21If you're in business, customer service, very clear use case, knowledge, document. I mean, these are all pretty. You know, what's, you know, what's really interesting to me is what this, what this tells me is that these five, six things are probably the best use cases for AI right now. Yeah, absolutely. Data enrichment, planning, help, customer service, structured data, QA, document comparison, internal knowledge assistant, right? Like they wouldn't have those on there unless those were the most likely things for people to go and try and use that. That's interesting. Interesting. You can like reverse engineer that and think about, oh, how could I be using this in my organization?

10:57That's cool. Exactly. So you can also now, here's a business opportunity for anyone wants to say, hey, which use case should I build to go help companies pick one of these and get started and finish the last mile? Okay. So what are we building today? Okay. So I'm going to show something that's outside of this scope because I think even though you have to hook up things still, we'll go through that full process. So you can see from beginning to end. So what I went ahead and built, so first up here, you have workflows, drafts. I have a ton of drafts, workflows when you actually publish it, which basically then makes it accessible for one of the other cool features that they have in here, which is embedding these workflows into apps and a UI.

11:38So we won't get into that, into the minutiae today, but one of the big things that make Agent Builder interesting is that they have an ecosystem where you actually can take it rather than it just sort of looking like this backend and then you're like, okay, great. Where's the interface? Now you can actually hook it into an interface really easily within the OpenAI ecosystem rather than having to go to a lovable or going to another third party. Ah, yes. The elusive wrapper. We have heard much about this elusive wrapper. Exactly. Is it also kind of like, do you remember with GPTs where you could create and then publish GPTs for other people to use?

12:19Can you create this and publish it? Yes. So they have this other area. So with the publishing, I have to actually figure out where that goes. I just know - That's fine. Yeah, it's accessible. But they have this other thing called a widget builder, which is widgets.chatkit.studio. It's basically, these are all their prebuilt little widgets that you can now connect to that backend we just saw. That - Interesting. You can then connect and say, hey, when you click this, it triggers something we had in there, and you can basically create your own widget as well. It's kind of like Zapier where they have pre-built automations or workflows.

13:00This is so interesting. It's like this amalgamation of lovable replet, no code solutions, but also the automation tools like Zapier, N8N, and Make. Yep. Lindy. Interesting. Okay. Yep. I'm pretty sure they're going to make all these accessible across the board so that people can basically utilize them. But I haven't dug into that, so I don't want to... Well, because even the UI for creating the agents looks like Zapier. Yeah. So I would say this is close to N8N, Zapier. A lot of them are very similar in how they're structured. It's sort of this drag and drop is what you get. Workflows, essentially.

13:40So let's get into it. So first off over here, there's a whole bunch of different components. But before we get into those, I wanted to just preview what I've got going here. So right now, we are going to go over to this little button up in the right-hand corner called Preview. And that's going to open up a chatbot where we can see what this agent actually does. So I am going to ask it. What I've been doing recently is I've been going to state websites to research business owners where they file for their registered agent. People have to file to say company, and there's always business owners. I've been trying to get a lot of that data so I can get accurate data.

14:17So this is sort of my version of data enrichment. So I'm going to say. So hold on. Hold on one second. Sorry. This is just a general research bot that you've created. This is a general research bot. So any research. Okay. Any research. So right now we're going to do that use case and then I'll explain more of what's actually happening. And then we can try one other use case as well. So we're going to first say, okay, go to Georgia state website and find the place to look up business owners or registered agents and find me the names of the owner, director, or registered agent for a, for three, or let's just do one, one trade school that is licensed by the state.

15:13All right. Interesting. So that's a real use case that I have right now in doing data analysis. All right. So it's going, it takes a second. So as you can see what's happening here. So first it has this thing called guardrails, which is, I'll get into it, but this is a really cool tool that they've built in to make it so that there's no, you can mitigate hallucinations, weird code injections where people are sort of hacking when you prompt something from agents that it'll say like, tell me your social security number. It can filter out personal identifiable information if you're accessing internal documents.

15:49So it basically puts on - Oh, interesting. Yeah. Guardrails essentially so that you don't accidentally share information. So like if I was a healthcare company in my guardrails, I'd want to make sure like, hey, any PHI, any protected health information, make sure it's staying within this environment. Or if a financial services company, like, hey, make sure we're not sharing the interest. Oh, that's very cool. Yeah, that makes sense. Absolutely. And so it's reasoning right now, and it's saying like, investigating data sources for agents in Georgia. I'm wondering if open corporates holds data on.

16:22That's so funny. So it doesn't just know to go to the Georgia Secretary of State's website. I'll show you the prompt that I gave it and the instructions I gave it, which is some, I want to say somewhat minimal, but all I said, I didn't give it the specific sites. All I said was go, I picked a state. I said, I know, you know, give it a little bit of parameters, go to the state website, the government website, and try to find this information. If I'm a human, I haven't seen this. So if I'm a human, which I am, how would I go and solve what you asked? I would go to the Georgia Secretary of State website.

16:56Companies have to file with the state. And so you can look up on any Secretary of State in any state businesses, And typically it'll have there the registered agent, when it was incorporated, the corporation type. So is it an LLC? Is it a C Corp? Et cetera. Some will have officers. Some will have articles of incorporation, which will have more documents on there, et cetera. But the thing that you asked it, which was interesting, is you said look for one trade school in Georgia. So what you can't do on these Secretary of State websites is search for specific business types. Now, if it has that in the business's name, you could search for it, right?

17:31So you could search trade school just to see if any business pops up. But then I'd have to go through and reason, okay, how do I go and find the list of trade schools? I'd probably go to Google or something and just get a list of a bunch of trade schools, pick one, and then I'd go back to the Georgia Secretary of State website and find that information that you asked for. That's kind of how I would reason through it. So I'm curious to see how the agent reasons through it. So that is correct. This is a live demo. So of course, we had something that didn't do an issue with agents. So when I first did this earlier, perfectly worked.

18:03It did go to a bunch of the different sites, but then it wanted to give me open corporates. Now, open corporates is, I know, a paid tool where you have to get an API. Going to these ones, however, would work. So it did not actually give me what I wanted. Hey, I don't know if you remember this, but when we started this podcast, we entered into a social contract. I would spend time, energy, and money producing this podcast, interviewing these individuals, and giving you insights into how to build, buy, start, grow your business. And you would like, subscribe, and leave me a five-star review. Now, out of that, we both get to talk to really cool people and hear really cool insights.

18:42We both get a ton of value. But I just want to help you keep your word. So would you do me a favor? Will you go leave a five-star review for me on Apple or Spotify? It would really help. and if you want, even share this with a friend. Okay, one licensed trade school. Okay, so it gave me a bunch of extra stuff too. So I need to clean up my prompt a bit, but it did give me info. There it is. That's actually the name of a trade school. As you can see, here's the address, the business entity, a registered agent and all that. So it did work, it just gave me a bunch of stuff. Oh dude, look at that. Hold on, look right above that.

19:17Where to look up the Georgia State website. Licensed trade schools directory. Apparently, there's a directory of institutions that are licensed. See, I would have gone to Google. It did it a different way. It was like, well, they got to be licensed by the state. I'm like, that's cool. Yep. So anyhow, so this worked. But let's maybe try a different use case real quick. Maybe there's something behind. Why don't we do like, we could do stock prices. Or we could do like sentiment on Twitter. Do you want to do sentiment on Twitter? Because you don't actually have a good public API. So we could see if it finds that for something.

19:49Oh, yeah. Okay, let's say. Oh, that's interesting. Okay. Yeah. What is the current sentiment of Agent Kit right now on Twitter, on X, which X, not Twitter? There is no publicly available XAPI. You have to go and pay for it, and it's a lot of money. So we're going to see if it figures out as an alternative way to find out what people are saying on X regarding Agent Kit. That's really interesting. One of the things I've been working on, I mean, you know, the news site that I've been working on for skilled nursing is like a sentiment index. So there are many indexes that kind of measure sentiment in specific industries.

20:31And I want to create one for the skilled nursing space. But it's like, OK, how do I do that? Oh, I could go to LinkedIn and see all the posts. But API access to LinkedIn is really difficult. So, OK, well, how do I work my way around that? Is there something else? This could kind of help me work through potentially where to find the sentiment. Exactly. Yeah. Holy boss. That's awesome. I have another hack for you on that one, probably. I think Cloud Code would be a better problem solver. That's what I'm using. Yeah, I'm using Cloud Code. It's creating the API documentation. You know what I didn't know?

21:01I'm sure people listening are like, duh, moron. Like, if you just know the API, now you can just build your own tool. Whereas in the past, if I knew the API, unless I was a coder, I couldn't build my own tool. that is just like mind-blowing to me like oh i don't i don't need to go through somebody else to get all the information from google news i can just pull it myself in my own format yep oh hello exactly it's incredible exactly and that's like a huge opportunity right now is like just building wrappers around apis go to apify go to any api and put a better ui on it i was talking to somebody yesterday on my podcast who sold an ed tech company for like 30 40 50 million dollars and it started in 2008 and what his ed tech company was is it trained people on how to be digital marketers effectively because in 2008 if you remember nobody knew how to be digital marketers it's like do i do i get a facebook page or like do i optimize my google profile blah blah blah and basically his assertion was like the way it felt in 2008 about digital marketing is the way it feels today with AI.

22:09Business owners know it's important, but they don't know what to do. And back in 2008, if you were just somebody young who had used Facebook before, cool, I'll use you and you'll figure it out. And he's saying today, he's like, if you just know how to use AI, they'll contract with you. And the same opportunity to start these agency businesses is today with AI automation, where it was digital marketing in 2008. I mean, I've already seen now, you know, a ton of people just building agency businesses that have, you know, had huge exits. And now they're like, I have an agency now. I have an AI automation agency now.

22:42And it's not that crowded because if you go and talk to small, medium-sized business owners, everybody's just busy doing their stuff. Like, again, I have a lot more time for the average person to be spending on this. If you have a job, if you're doing other things, like it's hard to allocate the time to like get in the weeds and figure out what's what. I keep telling Liz that she needs to spin up an AI automation agency and she keeps telling me no. So if you're listening to this, please reach out to her and tell her to do it because she actually knows what she's talking about. Every time we get on here, she's like, oh, you're going to think this is stupid because it's kind of like old.

23:12And then she'll show it to me. I'm like, what? How long has this been here? So funny. Anyway, sorry. Let's see. Let's see. Okay. Back to it. All right. Basically, what we have here is it did look up something called RSS Hub. So it actually went through this concept of an RSV, which is collecting from a third party, the XAI data. And that API to then get a sentiment. So it collected text snippets under 500 words, posted it, gave it scores, aggregated it. Wow. And let's see. Wow. And it's showing the weighting of the scores. Like, yep, this is how I'm going to score it. What the freak. Okay. So let's see where it's the answer though.

23:52For those of you can't see, she's like scrolling through a bunch of output. And can you just tell it, don't give me the labor pains, just give me the baby? Like, can you just give me the answer here? So I need to clean up the prompting a bit. And if I reprompt it right now, it'll go back and start from the beginning. Yeah, that's the important thing. Well, you could copy this output and just go to like Claude or ChattyPT and say, Hey, what's the current sentiment based on this? Absolutely, I could do that. Absolutely, I could do that. But so anyways, okay, so you can sort of see though that like also with agents, the outcomes are not as consistent as if you were doing like very specific step-by-step methods.

24:33So let me just get a little bit under the hood unless you had any other questions on the sort of output here. We could do an example if you wanted. I mean, I want to know what the number is, but no, I don't have any questions. So let me quickly just run through what all the stuff on the side is and then what I built here. So an agent, again, are these little nodes here that are like this purplish blue that basically will go out and do the action. You have the end node, notes so that you can know, remember what you're building. File search, which is you don't totally need these separately. This is more automation type stuff, but file search essentially will go and get files from the vector storage or any sort of documents you upload.

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25:16Guardrails, we sort of explained earlier, which is over here on the left. You can see. So you knew you wanted a research bot. Yes. So you already knew that that's what you wanted to do. And so you went, come here and you go to start. What's the first thing you do after clicking start? So when you click start, it's going to basically give you this little box here. This is where you configure things. You don't need to add any variables or anything. But if you wanted to, because hypothetically, you could loop through this whole thing and where you might need to say like plus one for every loop, or there might be things you need to add in here, such as like text or numbers or yes or no Boolean or objects or lists where it starts with that information.

26:00You're treating me like I'm a fifth grader. Okay. Like go to kindergarten. In this first start, what did you put in here? I did not put anything in here. I did not put anything in here. It automatically has input text, which is essentially my prompt that I had just put in when I said, go research all of this. That is what input as text is. That's what's basically the variable from the user being put in here. So to set this up though, like what's step one? Okay. So when you create, start, it gives you start and it gives you a node. So as you can see here, there's nothing in here. You don't really need to put anything.

26:39This is just saying, what are the variables? What are the things that are going to go through here? Your first step was putting the guardrails in? I didn't actually. I did this later and this is more for demo purposes and actual like real functionality. But this hypothetically will have more interesting things down the road because in other tools, I consider this as like the trigger. Like what starts the workflow? Like what initiates? Sometimes it can be in other tools, frequency every day, some other like it gets information from a different app or tool. right now the only way to start things in in their system is through that chat interface or which is that input is text exactly so when you go back okay got it which we can't do for some reason right now but when you input is text you do their prompt that's what's starting okay okay then the guardrails which again this is just for the sake of demo it didn't really like i didn't really need this necessarily in this workflow but this was just like so you can show okay so someone doesn't try to jailbreak it.

27:41I didn't want any prompt injections or things. Hallucinations, continue on error. This is helpful so that it just doesn't stop if you continue in the middle. This is a personal identifiable info. So basically we sort of went over this stuff. So why are there two strings after guardrails? Okay. Because this is if it passes these guard rails, so meaning there wasn't the PII, someone's not doing prompt injection, then continue forth. if someone is trying to do prompt injection, it's hallucinating really badly, there's PII, it goes to fail, and then you could have it go and do something else. So think of like, you have a situation, you have to escalate it, it goes through a different path, a different process.

28:23And so did you tell that agent in that process what to do? I just said, if it's like, because I only really did it based on the jailbreaking, I said, what it explained the likelihood of the jailbreak and why it failed the guardrail. So I haven't actually even tested it. Again, this was just for the sake of they'll do something here. That's fine. No, no, no. It's good. Yeah. Okay. So the next step is the API research. This is just simple web research. So let me sort of break down what's here because this is now we're talking agents, which again is that first core node up here. And I'm going to give you a couple tips so that you don't run into challenges that I know you'll have.

28:56Let me go over here from starting from scratch. You're just going to see this. It's just going to be sort of blank. Number one, model. So as I'm already running up, like I haven't done, I did 88 tasks. I ran up already a$2 bill. Now that might not seem that much, but like in the scheme of automation, that is going to get expensive. So you probably want to select a different model. And again, you can go and just, if you don't know where the pricing is, just Google or ask ChatGPT, give me the pricing on the API models. And then you can select which one you want. Usually the nanos are the cheapest.

29:29Next, what you want to understand, so you can name your agent, rename it up there. Then you have the instructions. This is something to just keep in mind. This is super, super important. Instructions are not just this box. You must add a user box here. The difference between these two, this is basically, it sort of even tells you, describe the model behavior, tone, tool, usage, response, style. So this is sort of giving it the rules of how it's going to be used. So this is like in an output style that you want, context of what its job is, your personal assistant that is doing writing for me, make sure to only use these websites, make sure your style is always very professional and zingy or zany, whatever you want to do.

30:17And then the user message is, again, based on what the user is going to put in and any sort of additional context that, you know, the user probably will mess up because they're not going to have perfect prompts that you want to include in there. So the instructions are telling the agent how to act? Yes. The user is making sure that whoever's asking the question puts the right information in? Sort of, yeah. Like basically you can say like even in my examples, let me just show what I put. Okay, so like I told it what its job is. I said your job is to search the web for an open and free to use API to get the user basically the data it wants.

30:58Then for the user, I said, you will then create short, concise documentation on how the API works and how to call it correctly, use this input. Hypothetically, I could probably put some of this up in the instructions. But I think my point in the most important pieces is that make sure you just have this box, like you add you don't just have this just leave a blank because either leave it blank or don't add this little plus sign because your your automation will completely fail and they're really bad at giving you sort of the errors as to saying like here was the problem in your workflow like i had to figure out that i had set this up correctly so so the user i would have thought that was me but it sounds like it's still instructions to the agent it's additional context behind the scenes for like assuming the prompt is something like there's maybe some additional information you want to give it.

31:49But again, like you could hypothetically put it up here. It's just like, okay. Yeah. Yeah. Okay. You don't have to over overthink it too much right now. Liz, it's like my whole life. The other piece you want to make sure is that you actually pass the prompt from the user in here, which is this little like bluish in the curly brackets. And that's where you would add the context here. So you have little two boxes here. You have input as text, which is what the prompt was from the user. It will always say that. If you had added other variables in that start node, they'll show up here as well. And then the output from the guardrails is what's called safe text.

32:30And that might move in here. Otherwise, it will not pass the information on. Well, because it can't. It doesn't have it. Correct. Correct. That's a variable. And that's the variable that it's passing. Okay, a couple of things to note on this to include chat history. So this will show to the user. So if you want it to basically display to the user, this is include chat history, this is helpful so that it has basically memory, so it can recall things for the future if you need it, especially if you're like looping things, or there's additional context, if it's sort of like one way through, you might not need this.

33:06or again, if you're going to have, you know, some back and forth, not in that demo area, but you're having it in like a real live chatbot situation. Yeah. And that's pretty cool because in other tools, you actually have to configure what's called memory. Reasoning effort, pretty straightforward, like how hard do you want it to work? Output format. So there's reasons why you might want different outputs for it to pass information along for this demo. We're making it easy and just doing text as you would. I won't get into the details of this. this helps to like structure information and sort of break it apart to then pass it along.

33:41And then for widgets, that's if you're using one of their other tools as well that has like one of the icons that we showed you earlier. Veracity in summary, like this is pretty straightforward. I don't need to explain that. And then the other ones are again, pretty straightforward as well. Okay. Okay. And so what does it do from here? It takes the research and then spits it to... So this has researched an API, a free API that it can use that we don't have to go and log in and pay and set up. Then it creates that documentation and it outputs it for this guy to use. So then I say this one's job is to use the below documented API to return an answer from the user's question.

34:22So I have to both use the initial input, which that you can see now here, input string. This was from the initial and then the output. Another thing to notice here, that initial data that was passed through from the guardrails is now missing from the reference here. If you for some reason wanted to include both the output here from the guardrails as well as this, you would have to save that information as what's down here, set state. So this is basically saying let's store that information in a variable that can be used later. Basically, the way that this flow works is here's the question, here's the guardrails.

35:02First, go and gather the information. That's the first agent that's going out using an API to take the information. And then the next agent takes the information and synthesizes it as an answer to the original question. Yep. And actually does action. Because it's an agent, it's going out and doing something. So it went to the API, and then from this one said, here, I'm going to learn this information, and I'm going to do something. And the reason it's able to go and do something is they gave it access to what's the most important part of an agent, which is tools. In an agent, without tools, it's just the LLM.

35:39That's all it is. When you give it tools, it now can go and do things. So I won't go into the minutia of how the specifics are to set this up just because I know I've been on this for a while. But essentially, these are sort of the most important pieces of it, where you can access an MCP server, which is essentially a built-in tool here, like accessing Google Drive, Google Calendar, Gmail, so on and so forth. Zapier, which is a bit of a hack that I have, because this then gives you access to the rest of the MCPs, and it's much easier to set up MCP tools in here. and all MCPs are just a simple way to configure access to other tools.

36:18Okay. So let me ask you this. Why would I ever use this over just going into like N8N or Lindy or Zapier? Okay. So I've used all of them. I'll give you my honest opinion and rating on this. Agent builder has potential. It's not there yet. So I would say if you've never built an agent, still go check this out, play around a little bit. I have had a lot of frustration. I was going in wanting to be excited about it, but I've used NAN and I think that's the most scalable, cost-effective, but it is a bit technical and a bit intimidating. Lindy is the easiest way to get started, I would say, but it can get expensive as well as I'd have the same criticism of make.com.

37:00I would say it's a little bit harder than Lindy because Lindy has really done a good job of like building out a ton of templates that you would use in your business and just making it like plug and play and it just works. Was this not an example that would necessarily highlight all the features? Because if I'm looking at this, it's like if I was building in, like you're saying, Lindy or NAN or Zapier, okay, I would have a step where it goes and crawls. And then I would have a step where it does the analysis just through an API with OpenAI. I just don't see what this is doing that those other tools can't do right now.

37:31Is it the MCP? No, no, no, no. MCP, and I would say out of all of them, Cloud Code is the best, but I do like using still NAN and Cloud Code. So you can talk about that at a different episode, but I don't think this is there yet. I don't think it's there that makes it so revolutionary. The potential and differentiation is on the UI component and being able to embed things in the UI that we didn't even get into, which is with widgets and the chat kit. And I think there's some potential there, but again, there's in this tool, if you've never built an agent, it's pretty, it's simple. It helps you just go from zero to one, do very simple things.

38:10But I will be totally frank here because I'm not going to overhype this. There's a lot of friction in actually getting the tools to work. And that's where the magic happens in agents. And having been someone that's, again, spent a lot of hours on stuff, it was not easy for me to get the tools to be working as they should with the MCPs. So could I use this and say like, hey, go look at my chat history on chat GPT or go look at this gpt that i created like is there really good native integration with chat gpt or is it no is the answer no not with your no no okay if you've built out if you have built out any better than any of those other tools correct if you built out stuff inside of their api system like their assistants then yes if you built out things on their api system then yes i have and i could be wrong because again, it came out earlier this week and I'm still just doing the basics here.

39:10But from what I can tell or from what's obvious, those level of integration isn't there yet. There's still a lot of friction in adding the tools, which I would say like even just to get started in a better access is using Zapier as a way to then get access to more tools because they're native integrations that they're trying to do. There's just friction and just things aren't working again once maybe i start building out some of the widgets and the you up the chat kit that they have that this little widget builder that could totally change and it might have a different tune and that's where i think like that vision is there i think the execution is not quite there yet yeah it seems to me like the bottom line is their user base probably like doesn't use Zapier or Lindy or these other builders.

40:02And so it's kind of just introducing the idea that, hey, you don't have to go off platform to build these agents while you start messing around in here. Kind of my takeaway. And I will say the two features that I think are really great that they have done, not to totally bash everything they built here. Number one is their access to the file and vector storage, where it's really easy to upload files and have that included in the workflow. That's not necessarily easy in all the other builders. You do have to go and like get the file and then add it in through like a call versus having it just like, here's the file, take it.

40:38Then the second piece is the guardrails, I think is really helpful. Now how good they are, I haven't done. That's true. But I would say those are two differentiators besides this UI element. But again, they're the type of people that they'll launch, break it, iterate. that's what they did with codex they had iterated a little bit on operator versus i would say like clod is a lot more in anthropic or a lot more polished when they launch things and then gemini they like build out all this awesome stuff and nobody knows about it so i think the ui is probably the best differentiator like and that's it's way less intimidating than any of those other automation builders in my opinion it's like they're just very simple the way that it looks so all right well there you have it go explore play around with this we'd love to hear what you build or if you have any questions, I'm with you.

41:25This will be the worst iteration of this. So it's only going to get better from here. And you probably at least should be exposed to it and understand how it works. Exactly. All right. Hopefully you liked that episode. And if you've made it this far, you're either really committed or you're stuck doing yard work and you can't actually skip on your phone. So while I have you, the show is growing, but I have a favor to ask of you. Will you please help me grow the show? I want to reach more people. There's a couple of things that you can do. Like and subscribe is the simplest thing. Obviously, you want to get notifications for when the next episode is coming out.

41:56But if you go the next step, will you leave me a review? Five star on Spotify or Apple. What that does is it tells the algorithm that, oh, hey, this is a high value podcast because more people are leaving reviews for it and it then pushes it out to more people. So that's why when people are like, will you like and subscribe and put the five star rating? It's not just to make themselves feel better. It's actually to get more exposure for the show. So if you do that for me, I would greatly appreciate it. and I'll see you next time.

From the publisher

Join me, Nik (https://x.com/CoFoundersNik), as I sit down with Elizabeth Knopf (https://x.com/leveragedupside) to demystify OpenAI's newest creation, the Agent Builder.


We set the context by explaining the crucial difference between simple, static if-then automation and a true agent, which requires autonomy, memory, and decision-making capabilities in a workflow. This tool is designed to finally make building complex agentic workflows accessible to business owners who aren't technical experts.


Liz walks us through the platform.openai.com/playground interface and demos a real-world research agent in action. We dive deep into the cost structure, explaining why OpenAI charges based on a high-call usage-based model using API calls, which can "add up really quickly", instead of a flat monthly subscription like ChatTPT.We compare it head-to-head with competitors like N8n, Lindy, and Zapier. While the Agent Builder UI is "way less intimidating" and features like Guardrails are valuable for mitigating hallucinations and protecting sensitive data, Liz reveals that the execution is "not quite there yet". Questions This Episode Answers:

• What is the core difference between an Agent and a standard business Automation?

• Why does OpenAI use a usage-based model for Agent Builder instead of a flat monthly fee?

• How does OpenAI’s new Agent Builder compare directly to tools like Zapier, N8n, or Lindy?

• What are Guardrails, and how do they protect internal business documents and mitigate hallucinations?

• What are the most likely and best use cases for building business agents right now?

Enjoy the conversation!

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This week we covered:00:00 Introduction to OpenAI's Agent Builder

03:05 Understanding Agents vs. Automation

05:48 Navigating the OpenAI Interface

09:09 Exploring Use Cases and Templates

11:57 Building a Research Bot with Agent Builder

14:49 Guardrails and Safety in Agent Workflows

18:04 Live Demo: Data Enrichment Use Case

20:55 Sentiment Analysis on Social Media

23:48 Challenges and Limitations of Agent Builder

27:05 Comparing Agent Builder with Other Tools

29:52 Future Potential and User Experience

33:03 Conclusion and Call to Action

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