Concepts / Enterprise AI Adoption and Deployment

Enterprise AI Adoption and Deployment

Forward-deployed engineering means embedded engineers working on-site with customers to implement and deploy software solutions.

  • Programming

A Belief Worth Testing

Many people in the software industry hold a quiet assumption: forward-deployed engineering is a specialty for unusual companies, not a model that serious software businesses should copy. Under this assumption, a company that sends engineers to sit with its customers must be doing something exceptional, perhaps because its customers are government agencies with difficult problems and slow purchasing processes. This section starts from that belief because, for the current period, the belief is wrong. Seeing why it is wrong explains why so many companies are now adopting the model.

What do you think happens?

Before the recent shift, how did the wider industry tend to classify forward-deployed engineering?

  • As a standard model that every software vendor should use

  • As a niche practice tied to unusual customers

  • As a requirement only for open-source projects

Reveal answer
Answer:

As a niche model tied to unusual customers. For roughly 2010 to 2024, the wider industry treated FDE this way.

The niche reading assumed that on-site engineers were needed only for exceptional customers, such as government agencies with hard problems. The rest of this article examines why that reading stopped holding.

How the Model's Standing Changed

The niche reading was not overturned by an argument. It was overturned by buying behavior. The sequence below traces how the classification of FDE moved from a specialty to a mainstream model. Each stage is a change in the evidence, not in the definition of the job.

Worked example

Tracing the Palantir Shift in 2024

Why did enterprise customers start buying Palantir's AI Platform in 2024, when the wider industry had treated on-site engineering as a niche?

  1. 1
    Step 1: Customer uncertainty

    Enterprise customers were watching the AI hype cycle and were uncertain how to respond to it.

  2. 2
    Step 2: Existing on-site capability

    Palantir was already on-site at customers, and its FDE capability was already in place.

  3. 3
    Step 3: Buying decision

    According to the source, customers bought the AI Platform because the on-site capability was already there. Palantir's commercial business changed direction as a result.

  4. 4
    Step 4: Reclassification

    A model treated as a niche turned out to fit the way enterprises were now buying AI.

Result

The niche classification gave way because of what customers actually purchased. The source's explanation is specific to this buying behavior.

Niche modeltied to unusual customersMainstream modelenterprises buy on-sitecapabilityOpenAI FDE teamtwo engineers at formation,early 2025OpenAI FDE teammore than ten engineerswithin a yearYC companies hiringfor FDEzero, three years earlierYC companies hiringfor FDEmore than one hundred byend of 2025
How did the position of FDE change from a niche practice before 2024 to a broadly adopted model afterward? Each row compares the starting point with a later point in the source's evidence.
  1. 1
    Before 2024: the wider industry treats FDE as a niche model tied to unusual customers.
  2. 2
    2024: Palantir's commercial business changes direction, and enterprises buy its AI Platform because the on-site capability already exists.
  3. 3
    Early 2025: OpenAI formalizes a Forward Deployed Engineer team, which grows from two engineers to more than ten within less than a year.
  4. 4
    Later: Anthropic builds an Applied AI engineering function on a similar pattern, and Google Cloud and Salesforce are also named among firms that have adopted FDE models.
  5. 5
    December 2025: the Anthropic-Accenture training partnership puts more than thirty thousand Accenture staff through Claude training in a single quarter.
  6. 6
    End of 2025: more than one hundred Y Combinator companies are hiring for the FDE title, starting from zero three years earlier.

What Forward-Deployed Engineering Means

Definition

Forward-deployed engineering, usually called FDE, refers to engineers who work on-site with customers to implement and deploy software solutions. The source describes these people as embedded engineers working alongside customers.

The word 'forward' signals where the engineer is positioned. The engineer sits at the customer's location rather than only at the vendor's headquarters. The work itself consists of getting software running against the customer's real systems. The job is therefore defined by location and by the target of the work: the customer's actual environment, not a generic demo environment.

Forward-deployedengineerCustomer siteCustomer's actualsystemsVendor's AI productCustomer's internalteamsworks on-site atworks alongsideships code againstconnects product to
How do the forward-deployed engineer, the customer's teams, and the customer's systems connect, and where does the vendor's product enter the picture?

Read the diagram as a set of relationships rather than a hierarchy. The engineer is the connecting point. The vendor's product is one thing the engineer connects, and the customer's systems are the thing the engineer ships code against. The source does not describe in detail how the vendor's core product team communicates with the engineer, so this diagram does not show that link.

Why Engineers Became the Bottleneck

The stronger claim in the source is that FDE is a gating factor for enterprise AI adoption. The source names the bottleneck as neither model capability nor capital. It is the supply of people who can sit at a customer's site and ship code against that customer's actual systems.

This changes how a deployment problem looks. A company may have a capable AI product and the money to deploy it, yet still be stuck. The product cannot be used until someone connects it to the messy, specific systems the customer already runs. Under this reading, the constraint sits at the point where the product meets the customer's environment.

The source treats the labs' investments in this kind of engineer as one proposition seen from two sides. Both OpenAI and Anthropic are committing large sums to producing these engineers. The source also cites the Anthropic-Accenture partnership as the same bet arriving from a different direction.

Structure, Capital, and Target Market

The source describes two new vehicles that structure FDE work: the OpenAI Deployment Company and Anthropic's FDE venture. They are different bets. The OpenAI vehicle is larger and financially structured around its backers. The Anthropic vehicle is smaller and aimed at the mid-market.

DimensionOpenAI Deployment CompanyAnthropic FDE venture
Relative sizeLargerSmaller
StructureFinancially structured around its backersNot detailed in the source
CapitalTied to its backers; no dollar figures given in the sourceNo figures given in the source
Target marketDistribution through its backers' portfolio companiesCompanies one tier below the largest customers, the mid-market
Stated roleA machine for distribution, and a way to gain delivery capacity quickly through an acquisitionBrings embedded expertise once reserved for the largest customers to companies one tier down

Structure, capital, and target market, using only what the source states. Blank or missing detail is marked rather than filled in.

Larger vehicleSmaller vehicleFinancially tied tobackersStructure notdetailedBackers' portfoliocompaniestarget marketMid-market companiesone tier below largestcustomers
How do the two ventures differ in structure, capital, and target market? Rows that the source does not detail are labeled as such in the comparison table.

On target market, the source adds a quotation. Goldman Sachs' asset and wealth management head described the purpose of its involvement as to 'democratize access to forward-deployed engineers'. The source reads the implicit argument as bringing embedded expertise once reserved for the largest customers to companies one tier down.

Common Misreadings of FDE

  • Common mistake

    Assuming FDE is only for unusual or exceptional companies

    What it looks like

    Concluding that a vendor sending engineers to customer sites must be serving government agencies with unusual problems.

    Why it fails

    The source states that the niche reading was overturned by buying behavior, and that enterprises began buying for the same on-site capability after 2024.

    Do this instead

    Treat on-site engineering as a model that many enterprises are now buying, not a special case.

  • Common mistake

    Treating model capability and funding as the main constraint on enterprise AI

    What it looks like

    Believing that a capable product with enough money will be deployed without further help.

    Why it fails

    The source names the bottleneck as the supply of engineers who can ship code against a customer's actual systems.

    Do this instead

    Locate the constraint where the product meets the customer's real systems.

  • Common mistake

    Filling in capital amounts for the two ventures

    What it looks like

    Stating a dollar figure for either the OpenAI Deployment Company or Anthropic's FDE venture.

    Why it fails

    The source gives no capital figures for either venture and does not supply the detail.

    Do this instead

    Describe capital qualitatively, such as the OpenAI vehicle being financially structured around its backers, and say when figures are absent.

  • Common mistake

    Assuming the vendor product team's role is documented in the source

    What it looks like

    Drawing a detailed information flow between the FDE and the vendor's core product team.

    Why it fails

    The source does not describe that link in detail.

    Do this instead

    Describe only the relationships the source states, such as the engineer working alongside customers and connecting the product to customer systems.

Applying the Sequence to a New Vendor

MEDIUM

Using the sequence from earlier in this article, explain in two or three sentences why buying behavior, rather than an argument, overturned the niche view of forward-deployed engineering. Name at least one piece of evidence from the source.

Hints
  • Start with what enterprise customers were doing in 2024, not with how the job is defined.
  • The Palantir example shows that customers bought because the on-site capability was already in place.
  • The hiring figures for Y Combinator companies show that the model spread beyond a single vendor.
EASY

A friend says that a vendor sending engineers to a customer site must be serving only government agencies. Using the source, write a short reply that corrects the claim and explains which evidence supports your correction.

Hints
  • Refer to the belief the source calls quiet and begins from.
  • Mention the 2024 shift and the Palantir example.

Key Takeaways

  • Forward-deployed engineering (FDE) means embedded engineers working on-site with customers to implement and deploy software solutions against the customer's real systems.
  • For roughly 2010 to 2024 the wider industry treated FDE as a niche model, but buying behavior after 2024, starting with Palantir's commercial shift, overturned that classification.
  • The source identifies the bottleneck in enterprise AI adoption as the supply of engineers who can ship code against a customer's actual systems, rather than model capability or capital.
  • The OpenAI Deployment Company is larger and financially structured around its backers; Anthropic's FDE venture is smaller and aimed at the mid-market. The source gives no capital figures for either.