Definition
Human-in-the-loop is a setup where humans intervene or guide the agent's decision-making process at critical points. The agent handles routine decisions autonomously but escalates edge cases, high-value decisions, or situations requiring judgment to a human reviewer.
Example
An AI agent processes expense reports under $500 automatically but routes reports over $500 to a manager for approval. The agent handles 80% of cases; humans handle the remaining 20% that need judgment.
Why it matters
HITL maintains accountability and trust while still capturing the efficiency gains of automation. It's the practical middle ground between full automation and no automation.