Variables and arguments are both used to store and pass data in UiPath, but they have some differences in their scope and direction. Variables are used to pass data between activities within the same workflow file. They have a default direction of In/Out, which means they can be read and written by any activity in the workflow. Arguments are used to pass data between different workflow files. They have a specific direction of In, Out, or In/Out, which means they can only be read or written by the workflow that invokes them or the workflow that is invoked. Variables and arguments can have different data types, such as String, Int32, Boolean, etc. Variables can be assigned to an argument value, but arguments cannot be assigned to a variable value. References: Managing Arguments, Variables, Arguments, and Control Flow in Studio, Different between variables and arguments