The primary function of the reasoning part of an agentic AI loop is to decide which actions to take next. It evaluates the current situation, analyzes available data (including goals, inputs, and environmental status), and selects the most appropriate next step for the AI to perform. This reasoning component enables the AI to plan, adapt, and manage its tasks in real time, distinct from components that gather data or execute actions directly. The reasoning part essentially drives decision-making, planning, and adaptive problem-solving within the agentic AI's continuous think-act-observe loop.