A Knowledge Based Agent in Artificial Intelligence has two levels: Knowledge Base (KB) and Inference Engine.

1. Knowledge Base- It is the base level of an agent, which consist of domain specific content. In this level agent has facts or information about the surrounding environment in which they are working. It does not consider the actual implementation.
2. Implementation level- It consists of domain independent algorithms. At this level, agents can recognize the data structures used in the knowledge base and algorithms which use them. For example, propositional logic and resolution. Knowledge based agents are crucial to use in partially observable environments. Before choosing any action, knowledge based agents make use of the existing knowledge along with the current inputs from the environment in order to infer hidden aspects of the current state.

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