Toward a Modular Architecture for Embedded AI Agent Systems at the Edge

The rise of Large Language Models (LLMs) has enabled agentic AI capable of complex reasoning and tool use; however, deploying such autonomy in pervasive computing environments remains challenging due to the strict memory and energy constraints of embedded microcontrollers. Existing frameworks typically assume server-class resources or continuous connectivity, leaving a gap for deeply embedded systems. This paper proposes a modular reference architecture for Embedded Agent Systems that bridges the divide between deterministic real-time control and agentic intelligence. We introduce a tiered design that decouples On-Device Agents - executing highly compressed neural networks and rule-based logic for low-latency, privacy-critical tasks - from Cloud-Augmented Agents that leverage Small Language Models (SLMs) for higher-level reasoning and planning. A key contribution is the integration of a cross-cutting Governance Layer, ensuring observability, policy enforcement, and safety across distributed fleets of autonomous devices. Rather than presenting purely empirical benchmarks, we analyze architectural design principles and trade-offs regarding latency, energy, and reliable execution in resource-constrained environments.