AI-ENGINEERING
    beginner

    Planning AI Applications

    AI Engineer path · lesson 2 of 124
    The idea
    Deciding where to put a robot in a restaurant. Whether it carries plates or just takes names depends on what happens when it drops something, whether the diner is waiting or being interrupted, and whether it has to learn the new menu by itself. None of those questions is about the robot.
    How to use
    Drag the three axis sliders to place your own feature, then use the last-mile slider to see how long 95% actually takes.
    Three reasons a company adopts AI, ordered by what it costs to be wrong. The first is rare and decisive; the last is common and tells you nothing about what to build.
    Would AI measurably raise profit or lower cost here?
    A support team whose replies AI can draft, a catalogue whose descriptions AI can write. The business survives without it; it just spends more than it needs to. This is where most real projects sit, and it is the motivation that comes with a number attached — which is what makes it tractable.
    Evidence: An MIT study (Noy and Zhang, 2023) of 453 college-educated professionals found that giving half of them ChatGPT cut task time by 40% and raised output quality by 18%.
    The question that comes before all three
    There is a fourth answer nobody puts on a slide: do nothing, deliberately. Not every problem is improved by a probabilistic component, and a rule that is correct every time beats a model that is correct most of the time whenever the rule exists. Write down what you would do without AI first — sometimes that is the answer, and you have saved a quarter.

    Key insight

    The motivation determines who gets to declare the project finished. An existential project ends when the business is safe; an opportunity project ends when the number moves; a not-being-left-behind project has no ending condition at all, which is why it usually keeps running long after everyone has quietly stopped believing in it.

    Plan an AI feature

    Sequence

    Order the planning steps before any code is written.

    Tap a piece, then tap where it goes — or drag it. Tap the tray to take one back.

    1. 1Drop a step here
    2. 2Drop a step here
    3. 3Drop a step here
    4. 4Drop a step here
    5. 5Drop a step here
    6. 6Drop a step here
    6 pieces left to place

    Test your knowledge

    20 questions
    Question 1 of 20
    Score: 0

    Which motivation for adopting AI carries the highest risk of not acting?

    The short version

    Deciding where to put a robot in a restaurant. Whether it carries plates or just takes names depends on what happens when it drops something, whether the diner is waiting or being interrupted, and whether it has to learn the new menu by itself. None of those questions is about the robot.

    In more depth

    Planning AI Applications

    Most of the cost of an AI feature is decided before anyone writes a prompt. Four questions, in order.

    1. Why build it — three motivations, by risk

    1.Existential risk — competitors with AI make you obsolete. Strongest motivation, and the rarest: only 7% of the 2,500 executives Gartner surveyed in 2023 cited business continuity.
    2.Missed opportunity — AI would measurably raise profit or lower cost. Where most real projects sit, and the only one that comes with a number attached.
    3.Not being left behind — real, honest, and tells you nothing about what to build.

    There is a fourth answer: do nothing, deliberately. A rule that is right every time beats a model that is right most of the time.

    2. Where it sits — Apple's three axes

    AxisLow endHigh endWhat it sets
    Complementary → CriticalSmart ComposeFace IDThe accuracy bar, and whether you need a fallback
    Reactive → ProactiveChatbotTraffic alertsLatency vs quality: proactive can precompute but is punished harder when wrong
    Static → DynamicPhoto taggingFace IDWhether you are committing to an update pipeline

    The axes are independent — that is the point of having three.

    3. How much autonomy — Crawl, Walk, Run

    Crawl — human involvement mandatory; the model drafts, a person disposes.
    Walk — the model serves internal employees; mistakes stay inside the building.
    Run — increased automation including direct interaction with external users.

    Microsoft's example promotion gate: 95% of AI-suggested responses used verbatim by human agents. The ladder is also your rollback plan.

    4. Can you defend it — three moats

    Technology — weakest. Everyone builds on the same models; capability converges.
    Data — the nuanced one. First to market accumulates usage data, but only if you built the loop.
    Distribution — favours incumbents, at zero acquisition cost.

    Ask: what remains valuable if the model gets twice as good tomorrow?

    5. Good enough — the usefulness threshold

    Four numbers, not one: quality, latency (TTFT, TPOT, total), cost per request, and everything else (interpretability, fairness).

    The last mile is the project. LinkedIn (2024): 1 month to reach 80% of the wanted experience, 4 more months to surpass 95%.

    Interview Questions

    Google
    Microsoft
    Amazon
    Intercom
    Microsoft
    Meta
    Stripe
    Anthropic
    OpenAI
    Sequoia
    a16z
    LinkedIn
    Google
    Meta

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