A fundamental concept in enterprise AI agent engineering is differentiating between Skills and Tools. While both extend the capabilities of an agent, they do so in completely different ways with different security implications.
A Tool is an external interface. It breaks the agent out of the LLM sandbox to execute code, query a database, or call an external API (like fetching a stock price or sending an email).
A Skill is an internal cognitive configuration. It is injected into the prompt or routing layer to teach the agent how to think about a specific domain (e.g. "Regulatory Compliance Rules" or "COBOL Translation Logic").
Use Skills to teach the agent domain knowledge. Use Tools to give the agent hands to interact with the outside world.