This document discusses agents and their environment. An agent is anything that can perceive its environment through sensors and act upon the environment through actuators. An agent's behavior is described by its agent function, which maps percept sequences to actions. The agent function is an abstract description and the agent program is a concrete implementation. A rational agent is one that considers the consequences of its actions to do what is best according to a defined performance measure. To design a rational agent, you must specify the performance measure, environment, and the agent's sensors and actuators, which is called the PEAS (Performance, Environment, Actuators, Sensors) framework.