Anthropic distinguishes two categories:
Workflows: deterministic LLM compositions. You decide the structure (which step runs when, what each step does, how outputs flow). The LLM only fills in the content. Predictable cost, latency, and quality.
Agents: autonomous loops where the LLM decides what tool to call next, when to stop, how to react to results. Higher capability ceiling, lower predictability.
Anthropic's principle: prefer workflows whenever they work. Escalate to agents only when the task structure genuinely demands LLM-driven control flow.
Most production "agentic" systems are actually workflows that look like agents from the outside. Recognizing this saves you huge complexity.