What Is a Neural Network? Breaking Down the Backbone of AI and Agentic Systems

Written By:
Founder & CTO
June 10, 2025

Artificial Intelligence has evolved rapidly over the past decade, and at the heart of this evolution lies a powerful concept, neural networks. These systems, inspired by the human brain’s neural structure, allow computers to learn from experience and perform tasks that once required human intelligence. Whether you're building a voice assistant, an autonomous robot, or an agent that writes code, understanding how neural networks operate is foundational.

Neural networks are not just another algorithm, they are the computational core that powers most AI and agentic systems. Their ability to recognize patterns, interpret complex data, and continuously improve through training makes them ideal for dynamic and intelligent decision-making workflows.

What Is a Neural Network? The Fundamentals

A neural network is a layered structure of algorithms that attempts to recognize relationships in a dataset through a process that mimics the way the human brain operates. It is made up of interconnected nodes (also called neurons), organized in three types of layers:

  • Input Layer: This is where raw data enters the model. Each node in the input layer represents a feature or value from the dataset.

  • Hidden Layers: These layers, which can range from one to dozens in a deep network, perform transformations on the inputs using mathematical functions. They are the core of the network’s ability to learn complex patterns.

  • Output Layer: Produces the final prediction, classification, or generated output depending on the task.

Each connection between nodes has a weight that adjusts as the network learns during training. Training a neural network involves forward propagation (passing input through the network), loss calculation (measuring how far the output is from the expected result), and backpropagation (adjusting the weights based on the error).

For developers, this translates to a system that can generalize from examples, allowing you to build models that don’t require explicitly programmed logic, just data.

Artificial Neural Network: The Engine Behind Intelligent Systems

An artificial neural network (ANN) is the simplest and most classic type of neural network architecture. It consists of fully connected layers, where every node in one layer connects to every node in the next.

ANNs are used across a wide range of domains, from predicting stock prices to detecting fraudulent transactions. Their structure enables them to approximate virtually any function, given enough data and the right configuration.

What makes ANNs particularly powerful for developers building intelligent systems is their flexibility. You can use ANNs to solve classification problems (e.g., spam vs. not spam), regression problems (predicting a house price), and even complex multi-output tasks. As the foundational block of neural networks and deep learning, ANNs are a critical starting point for anyone looking to harness AI in real-world applications.

Delving Into Convolutional Neural Networks: Specialized for Visual Data

When the problem domain shifts to images or videos, convolutional neural networks (CNNs) become the architecture of choice. Unlike ANNs, CNNs include layers that perform convolutions, mathematical operations that extract spatial features from input data.

This makes CNNs especially good at understanding pixel patterns, edges, shapes, and textures in images. A CNN processes an image in patches, which means it retains spatial relationships in the data, unlike a vanilla ANN that flattens everything.

CNNs are behind many of the AI-powered tools we use today:

  • Facial recognition on smartphones

  • Object detection in autonomous vehicles

  • Medical image diagnosis

  • Content moderation on social platforms

For developers, CNNs provide a scalable and high-performing way to implement visual intelligence. Libraries like TensorFlow and PyTorch offer built-in modules to construct CNNs efficiently.

Exploring Graph Neural Networks: Learning Beyond Grids

Data in the real world doesn’t always come in neat rows and columns, or even pixel grids. Think of a social network, a molecule’s structure, or a recommendation system. These are best represented as graphs, where entities (nodes) are connected via relationships (edges).

Graph Neural Networks (GNNs) are designed to process and learn from this kind of non-Euclidean data. Instead of assuming a regular structure like CNNs, GNNs aggregate and transform information from a node's neighbors to learn a richer, more context-aware representation.

For instance, in a fraud detection scenario, a GNN could learn not just from a user’s transaction history, but also from how closely they are connected to known fraudsters in a transaction graph.

This makes GNNs critical in fields such as:

  • Drug discovery (molecular graph analysis)

  • Knowledge graphs (search and inference)

  • Cybersecurity (threat pattern analysis)

  • Social recommendation systems

If you're building agentic AI systems that must understand and reason over complex relationships, GNNs are a natural fit.

Neural Networks and Deep Learning: The Bigger Picture

Deep learning is a subset of machine learning that uses neural networks with many layers, hence the term “deep.” This depth allows the model to automatically extract high-level features from raw data, eliminating the need for manual feature engineering.

Deep learning has enabled breakthroughs that traditional machine learning could not:

  • Natural language understanding (e.g., GPT, BERT)

  • Real-time speech-to-text

  • Self-driving car perception systems

  • Game-playing agents like AlphaGo

These models, trained on massive datasets with vast numbers of parameters, continue to improve as they see more data. They are also the underlying force behind agentic AI agents, capable of perceiving their environment, reasoning through goals, and executing long-running plans with minimal oversight.

As a developer, understanding deep learning gives you access to the most powerful tools in AI today. With frameworks like Keras, HuggingFace Transformers, and LangChain, you can integrate deep learning models into production-ready agentic workflows.

Why Neural Networks Are the Backbone of Agentic Systems

An agentic system is more than just a smart model, it’s an autonomous unit that perceives, plans, acts, and learns. These systems use neural networks at every stage:

  • Perception: CNNs or audio models to make sense of sensory data.

  • Reasoning: Deep or recurrent neural networks to maintain context and plan actions.

  • Learning: Continuous fine-tuning using feedback and reinforcement learning.

Neural networks give agents the cognitive capacity to adapt in uncertain environments. For instance, an AI assistant that writes code (like your IDE agent) needs to:

  • Parse natural language queries

  • Understand project structure

  • Generate relevant, syntactically correct code

  • Learn from user feedback and improve suggestions

All of this is enabled by neural networks, especially when stacked into large, multi-modal architectures.

If you're serious about building cutting-edge AI or agentic systems, neural networks are your primary toolset. Their evolution, from basic artificial neural networks to sophisticated architectures like CNNs and GNNs, has made them indispensable in every AI vertical.

Investing time to understand their inner workings gives you superpowers:

  • You can move beyond rules-based logic.

  • You can build systems that improve with time.

  • You can contribute to a new wave of agentic AI that changes how software is built and used.

With rapid innovations in frameworks and hardware, the barrier to entry is lower than ever. Start small. Experiment. And let neural networks become the thinking engine of your intelligent applications.

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