Agent Tools vs. Agent Skills

Intro

This article explains the difference between Tools and Skills in Domo agents, and when to use each.

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Understand Each Concept

Tools

Tools are external interfaces an agent uses to act.

A Tool is an API, function, or script that the agent invokes to perform a specific action or retrieve real-time data. When a user request requires interacting with an outside system — querying a database, sending a message, or running a calculation — the agent formats the required parameters and calls the appropriate Tool.

Tools are best suited for deterministic actions where the output is exact and repeatable (for example, “Send an email” or “Look up this month’s revenue”).

Common Tool types:

• API calls to external services (for example, CRM, ticketing systems)
• Database or DataSet queries
• Calculators or transformation functions
• Messaging or notification triggers

Skills

Skills are internal capabilities an agent possesses.

A Skill is a cognitive pattern or workflow built into the agent through its Role and Instructions — not an external call. Skills govern how the agent reasons, structures a response, or works through a multi-step problem without needing to invoke an external system.

Skills are best suited for probabilistic reasoning where judgment, synthesis, or nuance is required (for example, “Draft a persuasive rebuttal” or “Summarize this quarter’s pipeline risk”).

Common Skill types:

• Summarization and synthesis
• Tone-matching and audience adaptation
• Multi-step reasoning and analysis
• Template-filling and structured output generation

Key Differences

	Tools	Skills
What it is	External interface (API, function, script)	Internal cognitive pattern or workflow
Where it lives	Outside the agent — invoked at runtime	Inside the agent — defined in Role and Instructions
Output type	Deterministic — exact, repeatable results	Probabilistic — reasoned, context-dependent results
Best for	Acting on or retrieving data from external systems	Reasoning, drafting, synthesizing, and structuring responses
Example	”Retrieve open opportunities from the CRM"	"Draft a persuasive summary of pipeline risk”

Use Tools and Skills Together

Tools and Skills are complementary. Most effective agents combine both: a Skill determines how to frame a question or interpret a result, while a Tool retrieves the data or performs the action.

Example workflow:

1. User asks: “What deals are at risk this quarter?”
2. Skill — the agent applies its sales analysis reasoning to identify what “at risk” means in context.
3. Tool — the agent calls the CRM tool to retrieve deals matching those criteria.
4. Skill — the agent synthesizes the results into a concise, prioritized summary.

Tip: If the agent needs to do something, use a Tool. If the agent needs to think through something, that’s a Skill. Most useful agent responses involve both.