A loop is a set of steps that repeats. An AI agent works in a loop: it decides an action, does it, looks at the result, and decides again. An AI agent is a program that lets a large language model (LLM), the kind of model behind ChatGPT, choose its next step.
Human in the loop means a person is one of the steps. At chosen points the agent stops. It shows a person what it plans to do. The person says yes, changes it, or says no. Only then does the agent carry on.
Why not let the agent do everything? Because a model can be wrong in a confident voice. Reading a wrong answer costs little. Paying a wrong refund, emailing the wrong customer or deleting the wrong rows costs real money and trust. A person in the loop is a check placed exactly where a mistake would be expensive.
The same idea is older than AI agents. People label data (mark each example with the right answer) so models can learn from it. A person also checks a loan that a model marked as risky. In agents, the meaning is narrower: a run pauses before an action until a person decides.