Evaluating Foundation Models
AI engineering is the process of building applications on top of foundation models, and it has emerged as one of the fastest-growing engineering disciplines.
A Feature That Once Needed a Research Team
Pause and consider what a small team would once have needed to add an intelligent feature to a product, such as summarizing customer emails or drafting replies. Most people would picture a group of machine learning researchers, a large amount of training data, and a long build process. Today a single developer can often add that same feature in a few days. That shift is the reason a new discipline has appeared almost overnight. This article explains what the discipline is, why it has grown so quickly, and how its pieces fit together.
What AI Engineering Means
AI engineering is the process of building applications on top of foundation models. It has emerged as one of the fastest, and possibly the fastest, growing engineering disciplines.
The key phrase in that definition is on top of. The AI engineer is usually not building the underlying model from scratch. The engineer builds the layer that makes a general-purpose model useful for a particular purpose. A foundation model is broad and open-ended, so the work of deciding what it should do, what it should receive, and how its answers should be presented falls to the engineer.
Following One Request Through an Application
The clearest way to see where an AI engineer works is to follow a single request from start to finish. Before reading the steps, try predicting: when a user submits a question, which of the components in the path do you think the application developer builds, and which is the model that someone else may have built?
- 1The user types a question into the application.
- 2The application packages that input and sends it to a model API.
- 3The foundation model, which sits behind the API, processes the query and returns an output.
- 4The application receives that output and shapes it, for example by formatting it, checking it, or combining it with other data.
- 5The application presents the final result to the user.
Notice where the foundation model sits. It is behind the API, and the application sits between the user and the model. The engineer typically works on the application layer: deciding how the request is packaged, what happens to the output, and how the result is evaluated before it reaches the user. The model itself is usually something the engineer consumes rather than builds.
Consider a feature that summarizes customer emails. The user's raw email text is the input. The application wraps that text with instructions describing the summary task and sends it to the model API. The model returns a draft summary. The application then checks the draft for length, formats it into the support tool's layout, and displays it to the support agent. The engineer's decisions are in the wrapping, the checking, and the formatting, while the summarizing ability comes from the model behind the API.
Three Forces Behind the Growth
The rapid growth of AI engineering is explained by three forces that reinforce one another. Each is described in the subsections below, and the diagram shows how they combine to produce growth in the discipline.
Why the Name AI Engineering
Several terms are used for building applications on top of foundation models, including ML engineering, MLOps, AIOps, and LLMOps. ML engineering was not adopted because working with foundation models differs from working with traditional machine learning models in several important ways, and the term would not capture that difference. ML engineering remains a good umbrella term that covers both kinds of work.
Terms ending in Ops were also set aside. Operational components do exist in this work, but the central focus is on tweaking, or engineering, foundation models so they do what you want. The author surveyed 20 people who were developing applications on top of foundation models and asked which term they would use. Most preferred AI engineering.
Mapping the Use Case Landscape
Because foundation models are general, the range of applications is very wide. The source notes that the number of potential applications seems endless and that listing every use case is impossible. Categorizing them is also hard, because different surveys use different categories. The table shows two of the groupings the source mentions.
| Grouping approach | Categories named in the source |
|---|---|
| Amazon Web Services, enterprise generative AI | Customer experience; employee productivity; process optimization |
| Eight-category survey | Programming; data analysis; customer support; marketing copy; other copy; research; web design; art |
| Grouping by value captured | Cost reduction; process efficiency; growth; accelerating innovation |
Three different ways the source describes sorting AI use cases
A single application can belong to more than one category. A bot might provide companionship and also aggregate information, and an application might extract structured data from a document and then answer questions about it. The source also notes that some categories look rare in open source projects simply because those applications are rarely released openly. Builders of education, data organization, and writing applications may find enterprise use more suitable.
On business motivation, the source reports one data point: of 2,500 executives surveyed by Gartner in 2023, 7 percent cited business continuity, meaning the risk that an organization could go out of business if it did not adopt generative AI, as their reason for embracing it.
Starting With Lower-Risk Applications
Not every promising use case is a good first project. The enterprise world generally prefers applications with lower risks. Companies deploy internal-facing applications, such as internal knowledge management, faster than external-facing applications, such as customer support chatbots. Internal applications let a company build its AI engineering expertise while limiting exposure to data privacy, compliance, and potentially catastrophic failures.
The source also observes that although foundation models are open-ended, many applications built on them are still close-ended, such as classification. Classification tasks are easier to evaluate, which makes their risks easier to estimate. When designing an application, asking how easily its output can be checked is a practical way to judge its risk.
Mistakes Beginners Make About AI Engineering
Common mistake Assuming AI engineering means building the model itself
What it looks likeA developer plans to train a new foundation model before shipping a summarization feature.
Why it failsThe source says the engineer usually builds the layer on top of the model, not the model from scratch, and foundation model development is limited to large corporations, governments, and well-funded startups.
Do this insteadStart by consuming a model through an API and focus effort on the application layer.
Common mistake Treating the model's output as the finished product
What it looks likeA feature passes raw model text straight to users without formatting or checking it.
Why it failsThe application shapes the output by formatting it, checking it, or combining it with other data, and that step is where engineering judgment lives.
Do this insteadDesign the application to inspect and present outputs before users see them.
Common mistake Choosing the most ambitious use case first
What it looks likeA team launches an external customer support chatbot as its very first AI project.
Why it failsThe source notes that enterprises generally deploy lower-risk internal applications first, because external failures carry more exposure.
Do this insteadBegin with an internal-facing application and grow expertise before moving to public systems.
Common mistake Believing that ML engineering and AI engineering are the same thing without checking the differences
Predict, Then Check Your Understanding
What do you think happens?
In a typical AI application, which layer does the AI engineer's work concentrate in?
Reveal answer
The application layer between the user and the model
The source states that the engineer's work concentrates in the application layer, which decides what task the general model performs, what inputs it receives, and how its outputs are presented and evaluated.
Classifying a proposed application
A team proposes three AI features: an internal tool that searches company policy documents, an external chatbot that answers customer billing questions, and a tool that labels incoming support tickets as urgent or not urgent. Which should they build first, and why?
- 1Check user exposure
The policy search tool is internal-facing, while the billing chatbot is external-facing. Internal-facing applications limit exposure to privacy and compliance risks.
- 2Check error consequences
A wrong answer in an external chatbot is visible to customers and can cause the kind of failure the source warns about. Errors in an internal tool are more contained.
- 3Check evaluability
Labeling tickets as urgent or not urgent is a classification task. The source notes that classification is close-ended and easier to evaluate, which makes its risk easier to estimate.
- 4Decide the order
The team can reasonably start with the internal policy search tool to build expertise, and the classification tool is also a good early candidate because it is easy to evaluate. The external billing chatbot is a poor first choice.
Start with the internal policy search tool or the ticket classifier, and leave the external billing chatbot for later once the team has experience.
Think of an application you use or could imagine building. Write down the user's input, the model API call the application would make, and one way the application would shape the model's output before showing it to the user. Then decide whether the application is internal-facing or external-facing and explain how that choice affects risk.
Hints
- Start from the user and follow the request step by step, as in the request trace above.
- Ask who will see the output and what happens if the output is wrong.
- Remember that close-ended tasks such as classification are easier to evaluate.
Key Takeaways
- AI engineering is the process of building applications on top of foundation models, and it is one of the fastest-growing engineering disciplines.
- Three forces drive its growth: increased investment after ChatGPT, a low entrance barrier enabled by model as a service, and the ability to build with minimal coding or plain English.
- In a typical application, a user's query passes through the application layer to a model API and returns as output, and the engineer's work concentrates in the application layer.
- Use cases are grouped in many ways, and enterprises often start with lower-risk internal and close-ended applications because they are easier to evaluate.