Planning AI Applications
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 Small Team Thought Experiment
Pause for a moment and imagine a product team that wants to add an intelligent feature, such as summarizing customer emails or drafting replies to them. Most people would picture a group of machine learning researchers, a large pile of training data, and a long build process before anything reached customers. 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 that discipline is, why it has grown so quickly, and how its pieces fit together. The central question is simple: when a product uses a powerful AI model, which part of the system does the engineer actually build?
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-growing engineering disciplines, and the source describes it as possibly the fastest-growing.
The key phrase in that definition is on top of. The AI engineer is usually not building the underlying model from scratch. Instead, the engineer builds the layer that makes a general-purpose model useful for a particular purpose. A foundation model is broad and open-ended; an AI application narrows it to one job, with defined inputs, a defined way of presenting results, and a way of judging whether the results are good.
Three Forces Behind the Growth
The source names three forces that drove the rapid growth of the field. They are increased investment after the success of ChatGPT, a low entrance barrier enabled largely by the model as a service approach, and the ability to build applications with minimal coding or in plain English. The diagram below shows how these forces feed into the growth itself.
Tracing One Request Through an Application
To see where an AI engineer works, follow a single request. The diagram below shows the path a user's input takes from the interface to the model and back again. Read it as a sequence: each arrow is one handoff, and the steps on the application side are where the engineer's work concentrates.
- 1The user types a question into the application.
- 2The application packages that input and sends it to a model API.
- 3The model processes the query and returns an output through the API.
- 4The application shapes that output, for example by formatting it, checking it, or combining it with other data.
- 5The application presents the 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 source's own description puts the engineer's work in the application layer between user and model, which is the part of the path the engineer controls.
Where the Application Layer Sits
The layering in the previous section explains why AI engineering is more than calling an API. The model is general and open-ended. The application layer decides which task the model performs, what inputs it receives, and how its outputs are presented and evaluated. The hierarchy below shows that the foundation model is the base on which the application is built.
Worked Trace: Drafting Replies to Customer Emails
Following one reply-drafting request
A small support team wants an application that drafts a reply to a customer email. Trace the request from the user to the model and back, and mark which steps an AI engineer would build.
- 1Step 1: User input
A support agent pastes a customer email into the application. This is the user's query.
- 2Step 2: Packaging
The application packages the email with the instructions it needs, such as the task of drafting a polite reply. This is application-layer work the engineer designs.
- 3Step 3: API call
The application sends the packaged query to a model API. The team does not host the model or run its serving infrastructure.
- 4Step 4: Model output
The foundation model processes the query and returns a draft through the API.
- 5Step 5: Output handling
The application checks the draft, for example for length or missing fields, and formats it for display. The engineer decides what counts as acceptable here.
- 6Step 6: Presentation
The agent sees the draft inside the application and can edit it before sending.
Of the six steps, the engineer's work concentrates in steps 2, 5, and 6, which are all in the application layer. The model in step 4 is reached through the API rather than built by the team.
Common Use Case Categories
Because foundation models are general, the range of possible 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 difficult, because different surveys use different schemes. Amazon Web Services, for example, groups enterprise generative AI use cases into three buckets: customer experience, employee productivity, and process optimization. Other groupings exist, such as eight categories that include programming, data analysis, customer support, marketing copy, research, web design, and art, and groupings by the value captured, such as cost reduction, process efficiency, growth, and accelerating innovation.
| Category scheme | Example categories | What it emphasizes |
|---|---|---|
| Amazon Web Services grouping | Customer experience, employee productivity, process optimization | Where generative AI fits inside enterprises |
| Eight-category grouping | Programming, data analysis, customer support, marketing copy, research, web design, art | The kind of task the application performs |
| Value-based grouping | Cost reduction, process efficiency, growth, accelerating innovation | The business value the application captures |
Three ways the source describes grouping AI application use cases
A single application can belong to more than one category. A companion bot might provide companionship and also aggregate information. An application might extract structured data from a document and then answer questions about it. The categories are therefore lenses for describing an application, not sealed boxes. The source also notes that some categories look rare in open source projects simply because those applications are rarely released openly, and that builders of education, data organization, and writing applications may find enterprise use more suitable.
Why Enterprises Start With Lower-Risk Applications
Not every promising use case is a good first project. The enterprise world generally prefers applications with lower risk. The source reports that 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. A practical way to judge an application's risk, then, is to ask how easily its output can be checked.
Mistakes When Planning an AI Application
Common mistake Thinking AI engineering means building the foundation model itself
What it looks likeA team plans to train its own large model before shipping a feature.
Why it failsThe source describes AI engineering as building on top of foundation models, and building those models is possible only for large corporations, governments, and well-funded startups.
Do this insteadStart from an existing model accessed through an API and focus the effort on the application layer.
Common mistake Assuming the API call is the whole application
What it looks likeA team sends user input straight to the model and displays the raw output.
Why it failsThe source says the application packages the input and then shapes the output by formatting it, checking it, or combining it with other data.
Do this insteadDesign the packaging, output checking, and presentation steps as deliberate parts of the application.
Common mistake Choosing the most ambitious use case first
What it looks likeA company launches an external customer support chatbot as its first AI project.
Why it failsThe source reports that enterprises generally prefer lower-risk applications and deploy internal-facing ones faster, which limits exposure to privacy, compliance, and serious failures.
Do this insteadBegin with an internal application, or with a close-ended task such as classification whose output is easier to evaluate.
Common mistake Treating one category label as the only description of an application
Common mistake Assuming an application fits only one use case category
What it looks likeA document tool both extracts structured data and answers questions about it.
Why it failsThe source notes that the same application can belong to more than one category.
Do this insteadDescribe the application by every task it performs, not by a single bucket.
Check Your Reasoning
What do you think happens?
In the model as a service approach, does the application developer need to host the model and run the infrastructure that serves it?
Reveal answer
No. The model is exposed through an API, and the application developer does not need to host the model or run the infrastructure that serves it.
This is what lowers the entrance barrier: the application sends the query to the API, and the API returns the model's output.
A hospital wants two AI applications. Application A helps its own staff search internal policy documents. Application B answers questions from patients through a public website. Using the source's reasoning about risk, which application should the team likely start with, and what is the main reason? Explain in one or two sentences.
Hints
- Consider whether the application is internal-facing or external-facing.
- Think about data privacy, compliance, and how exposed a failure would be.
Key Takeaways
- AI engineering is the process of building applications on top of foundation models, and the engineer usually builds the layer that makes a general model useful for a specific purpose.
- Three forces drove the field's growth: increased investment after ChatGPT, a low entrance barrier enabled by the model as a service approach, and the ability to build with minimal coding or in plain English.
- A user request passes from the application to a model API and back, and the engineer's work concentrates in the application layer between the user and the model.
- Use cases span many categories and can overlap, and enterprises often start with lower-risk internal and close-ended applications because they are easier to evaluate.