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# Understanding Memory in Agents
Memory is a crucial component for creating more natural and context-aware agents. It allows your agent to maintain context across multiple interactions with users.
Memory allows your agent to:
- Remember previous user questions and its own responses
- Maintain context across multiple interactions
- Provide more personalized and relevant responses
- Avoid asking for the same information repeatedly
Without memory, your agent would treat each interaction as if it were the first, leading to a disjointed and frustrating user experience. With memory, your agent can build on previous conversations, creating a more natural and helpful interaction.
In the following steps, we'll add memory to our financial assistant agent to make it more context-aware and capable of providing better responses over time.