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Tools let your agents take actions, beyond answering questions. A tool call happens when the LLM decides that answering the user’s request requires calling an external system (sending an email, querying a calendar, creating a task, reading a file).

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Tool types

TypeDescriptionWhen to use
Pre-built (Composio)25+ ready-to-use OAuth integrationsFastest path; covers most SaaS tools
Custom ToolsYour own API defined via OpenAPI spec or ACI Python snippetPrivate APIs, internal systems
MCP ServersAny Model Context Protocol serverBroad tool ecosystems, community servers

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Adding a tool to an agent

  1. Go to Tools in the sidebar
  2. Find the tool and click Connect (OAuth flow or API key)
  3. Open the agent → enable Tools in Core Features
  4. Select the connected tool(s) from the list
  5. Choose specific actions to expose to the agent
Select only the actions your agent needs. Fewer actions = less decision overhead for the LLM. An email agent doesn’t need calendar write access.

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Auth modes

Shared: All users share the same credentials (service account). Best for internal tools where all users should act as the same identity. Per-user: Each end user authenticates individually. The agent uses that user’s own credentials when calling the tool. Best for personal productivity tools (email, calendar). Per-user auth works even when end users are not Lyzr Studio users, the OAuth flow happens at inference time.

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Security

OAuth tokens and API keys are encrypted at rest and scoped to your organization. Tool credentials are never included in agent responses or traces. Lyzr’s open-source tooling layer is available via ACI.dev. On-premise deployments can self-host the tooling layer to keep all OAuth tokens within their own infrastructure.