What does an artificial design agent mean by being 'situated'?

Schön described designing as a 'conversation with materials conducted in the medium of drawing'. Both the problem and solution of many designing tasks emerge through this 'conversation' between a situated designer and the medium of the design. Unfortunately, describing agents as 'situated' means different things to researchers from different fields. In this paper we review work from different fields so as to describe what 'situated' means for a design agent.