Function Calling
AI CapabilitiesWhat It Means
Function calling allows AI assistants to connect with your existing business systems and tools to take real actions, not just provide text responses. Instead of just answering questions, the AI can actually pull data from your CRM, update spreadsheets, send emails, or trigger workflows in your business applications.
Why Chief AI Officers Care
This capability transforms AI from a passive advisor into an active business participant that can automate complex workflows and integrate seamlessly with existing enterprise systems. However, it requires careful governance around which systems the AI can access, what actions it can perform, and how to audit and control these automated decisions to prevent unintended consequences.
Real-World Example
A customer service AI that doesn't just suggest solutions but actually looks up order status in your ERP system, processes refunds through your payment gateway, and automatically updates the customer's account while documenting the interaction in your CRM—all in a single conversation.
Common Confusion
Many executives think this just means the AI can search the internet or access company documents, but function calling actually enables the AI to perform actions and modify data in business systems, making it much more powerful but also requiring stronger security controls.
Industry-Specific Applications
See how this term applies to healthcare, finance, manufacturing, government, tech, and insurance.
Healthcare: In healthcare, function calling enables AI assistants to integrate with Electronic Health Records (EHRs), practice manag...
Finance: In finance, function calling enables AI to directly integrate with trading systems, portfolio management platforms, and ...
Premium content locked
Includes:
- 6 industry-specific applications
- Relevant regulations by sector
- Real compliance scenarios
- Implementation guidance
Technical Definitions
Discuss This Term with Your AI Assistant
Ask how "Function Calling" applies to your specific use case and regulatory context.
Start Free Trial