A knowledge base is a structured collection of information that an agent uses in its work. It can contain: FAQs and answers to common questions, internal processes and manuals, product catalogues and price lists, conversation history and support tickets, legal documents and contracts, technical documentation.
For an AI agent, the knowledge base is its "memory" of your company. The better it is, the more accurate and reliable the agent will be.
Building the knowledge base is one of the most important phases of any AI project – and one of the most frequently underestimated. Companies want to launch an agent quickly but don't tell it "our standard delivery times are X, warranties are Y, exceptions are Z" – and then wonder why the agent answers imprecisely.
Practical advice: before deploying an AI agent, invest time in documenting your key business processes and FAQs. The investment in knowledge base quality pays back many times over in agent accuracy.