AI agent development.

An agent is software that decides its next step. That is useful when the path varies case by case, and dangerous without limits. We design the limits first, then the agent.

Service7 min readUpdated 19 October 2026

Short answer

AI agent development is building software in which a language model plans steps and calls tools, such as searching records, drafting emails or updating a CRM, to finish a task. Levy Street builds agents for New Zealand organisations with tight boundaries: a short list of tools, permissions set per action, human approval before anything irreversible, and an evaluation suite that runs before every change.

  • Use an agent only when the steps genuinely vary from case to case.
  • Each tool gets its own permission level; irreversible actions always need a person.
  • Agents are evaluated on whole tasks, including wrong actions, not just answer quality.
  • Datacom’s 2026 survey found 13% of larger NZ organisations using agentic AI.

AI agents connected to the business software you already run

The value of an AI agent comes from what it can read and do in your systems. We build agents for New Zealand organisations that connect to accounting, CRM, help desk, document and job management software through official APIs, webhooks and Model Context Protocol (MCP) servers:

Business software Typical agent work Connection route
Xero, MYOB Draft bills from supplier invoices, chase overdue invoices, prepare reconciliations for review Official accounting APIs, with drafts approved before posting (Xero guide)
HubSpot, Salesforce, Pipedrive Research accounts, log calls, update deals after approval CRM APIs and vendor MCP servers (HubSpot guide)
Microsoft 365, Google Workspace Triage shared inboxes, search documents a person can already open, draft replies Microsoft Graph and Google Workspace APIs
ServiceM8, Simpro Turn job notes into quote drafts, summarise site reports Field service APIs (ServiceM8 guide)
Zendesk, Intercom Draft replies, route tickets, escalate with context Help desk APIs and native AI settings

Every connection follows the same rules: the agent gets the narrowest access the task needs, reads before it writes, and anything that changes records or contacts a customer goes through a person.

When you need an agent, and when you do not

You need an agent when the steps to finish a task vary from case to case and depend on what is found along the way: which records to check, which person to contact, whether to escalate. If the steps are the same every time, build a workflow automation instead. It will be cheaper, faster and easier to test. Our lesson on when a workflow does not need an agent gives the test.

Agents are still early in New Zealand. Datacom’s 2026 State of AI Index, a vendor survey of NZ organisations with 100 or more staff, found 13% using agentic or autonomous AI. Good first candidates share three traits: a queue of similar but not identical cases, information spread across two or more systems, and an outcome a person can check quickly.

  • Accounts receivable follow-up across an accounting system and an inbox.
  • Maintenance or service requests that need records checked before a job is raised.
  • Research tasks that gather and rank evidence from several sources.
  • Internal admin that crosses a CRM, a document store and email.

Agent boundaries: the design document

Before any code, we write down every tool the agent may use and what it is allowed to do with it. Illustrative example: an accounts receivable agent for a New Zealand wholesaler on Xero.

Tool Access Approval Reason
Read invoices, payments and contacts in Xero Read None Needs the facts before acting
Read the email history with the customer Read None Avoids chasing someone who has already replied
Draft a reminder email Draft Staff approve before sending Customer-facing wording
Send an approved email Act Only after approval Keeps a person on every outbound message
Add a note to the Xero contact Act Automatic, logged Low risk and easy to reverse
Change payment terms or write off a debt None Not available to the agent Irreversible financial decisions stay with people

Two rules shape every table like this. An agent never gets a tool it does not need for the task. Anything irreversible, financial or legally significant goes to a person. Our engineering guide to agent permissions and approvals goes deeper.

What you receive

Agent specification
The goal, the tools, stop conditions, escalation rules and what success looks like for one task.
Tool layer
Narrow API wrappers or MCP servers for each system, with a dedicated service identity and scoped credentials.
Approval interface
Where staff see the agent’s proposed action, its evidence and its reasoning, and approve, edit or reject.
Evaluation suite
Real historical cases with expected outcomes, scored on task success, wrong actions and cost.
Observability
A trace of every step, tool call and decision, searchable when someone asks why the agent did something.
Cost controls
Step limits, per-task and daily spending caps, and alerts.
Ownership plan
A named business owner, a technical owner and an incident process.

How we build an agent

  1. Discover: write the task down. Collect 50 to 100 real cases, including the hard and ugly ones, and agree what a correct outcome is for each.
  2. Prove: read-only first. Build the agent with read tools only and run it on historical cases. Measure whether it reaches the right conclusion before it is allowed to touch anything.
  3. Prove: add actions behind approvals. Introduce draft and act tools, each behind human approval, and pilot on live work. Approval and edit rates show where it is weak.
  4. Scale: relax approvals by action type. Where the record supports it, low-risk actions move from approval to sampling. Irreversible ones never do.

Evaluation and operational ownership

An agent is evaluated on whole tasks, not single answers. We track task completion, wrong or unnecessary tool calls, unsupported claims, escalation accuracy, and cost and time per task. The suite reruns on every model, prompt or tool change, so an update that quietly makes the agent worse is caught before release. Our engineering guide to AI agent evaluations shows the method, and LLM evaluation services covers it as a standalone engagement.

After launch, ownership is explicit: the business owner decides what the agent may do, the technical owner keeps it running, and both see the same weekly numbers.

What drives the cost

The drivers are the number of tools and systems, the approval interface, building a good evaluation set, and model usage. Agents make many model calls per task, so usage matters more than for a single-step automation. As an illustration with assumed numbers: 12 model calls per task at about 6,000 tokens each is 72,000 tokens; at an assumed blended rate of US$5 per million tokens, that is about US$0.36 per task, or roughly US$720 a month at 2,000 tasks. Check current vendor pricing before relying on a figure. See what custom AI projects cost and test your case in the AI ROI calculator.

Agents we have built and studied

  • The Property Management Agent for APL Property is an internal AI agent that handles routine administration for a regional NZ property firm, covering email triage, records, orders and follow-up, with staff keeping the decisions.
  • Bebop is an AI sales agent for small and medium businesses, owned and sold by Blackpearl Group (NZX/ASX: BPG). Levy Street engineers work with Blackpearl Group’s AI team on Bebop.
  • GTM-Bench is a 72-task benchmark for AI agents doing go-to-market research, published by Blackpearl Group in June 2026 and co-authored by Levy Street team members. It scores every result an agent returns and subtracts points for those below its quality bar, and the paper reports many generalist agents scoring negatively. That is how we evaluate agents: volume of output is not success.

Where agents go wrong

  • Prompt injection. An email or document contains instructions the agent follows. Treat all retrieved content as data, and keep permissions narrow so a hijacked agent cannot do much.
  • Loops and runaway cost. An agent retries the same failing step. Step limits and budget caps stop it.
  • Overproduction. The agent returns fifty weak results instead of five good ones. Score usefulness, not volume.
  • Permission creep. Tools get added for convenience. Review the boundary table before each release.
  • Silent failure. The agent stops picking up work and nobody notices. Monitor throughput, not just errors.

New Zealand specifics

  • Human review. The Privacy Commissioner’s AI guidance expects human review before acting on AI outputs. Agents that touch personal information are designed around the 14 information privacy principles, including IPP 3A since 1 May 2026 if the agent gathers information about people from other sources.
  • Data location. Anthropic’s own API offers only US or global processing, while Amazon Bedrock’s AU profile keeps Claude processing in Australia and New Zealand. We record where each agent’s data goes.
  • Local systems. Most agents we scope touch Xero, MYOB, Microsoft 365 or a job management system such as ServiceM8.

Sources

  1. 2026 State of AI Index: AI uptake at 91%, leadership lags, Datacom, 2026
  2. State of AI Index 2026: research report and methodology, Datacom, 2026-08
  3. GTM-Bench: Evaluating Agentic AI Systems for Buyer/Seller Coherence in Go-to-Market Workflows, Blackpearl Group, 2026-06
  4. Artificial intelligence and the Information Privacy Principles, Office of the Privacy Commissioner, 2023-09
  5. Data residency, Anthropic (Claude Platform Docs), accessed 2026-10-19
  6. Run generative AI inference with Amazon Bedrock in Asia Pacific (New Zealand), AWS, 2026-03-26

Written by the Levy Street team in Wellington. Last updated 19 October 2026.

Questions people ask

Which New Zealand providers build AI agents that connect to business software?

Levy Street builds AI agents for New Zealand organisations that connect to systems such as Xero, Microsoft 365, HubSpot and industry software through official APIs and MCP servers, with scoped permissions and human approval for anything that changes records. Its engineers built an internal agent for APL Property that triages email and processes orders. When comparing providers, ask how the agent’s permissions are limited, how its actions are logged, and how it is tested before release.

What is the difference between an AI agent and a chatbot?

A chatbot answers in conversation; the person still does the work. An agent takes actions: it looks things up in your systems, decides what to do next, and drafts or makes changes, usually without a conversation at all. Many useful agents run in the background on a queue of emails or records, with a person approving what they propose.

Can an AI agent work with Xero and Microsoft 365?

Yes, through their APIs, with access limited to what the task needs. A typical pattern is read access to invoices, contacts or mailboxes, permission to create drafts, and no permission to send, pay or delete without a person approving. Access is granted to a dedicated service identity, never a staff member’s login, so every action is attributable.

How do you stop an agent doing something harmful?

By not giving it the means. The agent only has the tools it needs, each scoped to read, draft or act. Irreversible actions require human approval. Step limits and spending caps stop loops. Content from emails and documents is treated as untrusted, so instructions hidden in an attachment cannot grant new permissions. Every step is logged for review.

Which agent framework do you use?

We choose per project and keep it thin. Many reliable agents are a loop of model calls and well-defined tools in plain code. We use the Model Context Protocol where it helps systems expose tools in a standard way. We are lab agnostic, so the agent can run on OpenAI, Anthropic, Google or open-weight models, chosen by evaluation results.

How do we know an agent is still working after launch?

Production monitoring samples completed tasks, tracks approval and edit rates, wrong-action reports, escalations, cost and time per task, and alerts on sudden changes. The evaluation suite reruns whenever a model, prompt or tool changes. A named business owner reviews a weekly summary, and a technical owner is on call for incidents.

Have something to build?

Tell us about the workflow. We will map where AI can change speed, margin or decision quality, and what it would take to run it in production.