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53 posts tagged with "Solution Engineering"

AI Solution Engineering practice, 8D methodology, and VALUE gates

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AI Leadership in the Age of Regulated and Agentic AI

· 30 min read
AI Playbook author

Artificial intelligence leadership is often misunderstood as the ability to select the best model, approve an AI strategy or sponsor a portfolio of proofs of concept. Those activities matter, but they are not the essence of leadership.

AI leadership is the disciplined conversion of uncertain technological capability into measurable, secure, governed and socially acceptable outcomes.

What an AI-Focused Management Consultant Does at MBB and the Big Four

· 31 min read
AI Playbook author

A management consultant helps senior leaders solve important business problems, make difficult decisions and implement organisational change.

In an AI engagement, the consultant’s job is not simply to recommend an AI model or build a chatbot. The consultant must answer a broader set of questions:

Where can AI create measurable business value, which use cases should we invest in, how should the solution operate, what technology is required, what risks must be controlled, and how do we persuade people to adopt it?

Financial Modelling for AI: From Beginner Fundamentals to Advanced AI Economics

· 42 min read
AI Playbook author

Financial modelling is the process of translating a business idea, investment, product, project, or company into numbers.

A financial model helps decision-makers answer questions such as:

  • How much will the AI solution cost?
  • How will the solution generate financial value?
  • When will the investment break even?
  • How much cash will be required?
  • What happens if adoption is slower than expected?
  • Is it cheaper to build, buy, or partner?
  • Which AI architecture provides the best combination of cost, quality, latency, and risk?
  • What is the company or AI product worth?
  • Should the organisation approve, delay, redesign, or reject the investment?

For an ordinary software project, financial modelling usually connects customers, prices, employees, and infrastructure costs.

For an AI solution, the model must connect several additional variables:

Business DemandAI UsageModel PerformanceTechnical CostBusiness OutcomeFinancial Value\text{Business Demand} \rightarrow \text{AI Usage} \rightarrow \text{Model Performance} \rightarrow \text{Technical Cost} \rightarrow \text{Business Outcome} \rightarrow \text{Financial Value}

For example:

Customer enquiriesAI conversationsModel calls and tokensResolved casesReduced contact-centre cost\text{Customer enquiries} \rightarrow \text{AI conversations} \rightarrow \text{Model calls and tokens} \rightarrow \text{Resolved cases} \rightarrow \text{Reduced contact-centre cost}

The most important principle is:

Do not measure only cost per token, request, model call, or GPU hour. Measure cost and value per successful business outcome.

Examples of meaningful AI financial units include:

  • Cost per successfully resolved customer enquiry
  • Cost per approved insurance claim
  • Cost per qualified sales lead
  • Cost per completed legal review
  • Cost per detected fraud case
  • Cost per accurate document extraction
  • Cost per software feature delivered
  • Cost per clinical document summarised
  • Revenue per AI-assisted customer
  • Gross profit per AI agent session

Cloud FinOps applies the same fundamental relationship to AI as to other cloud services:

Cost=Price×Quantity\text{Cost} = \text{Price} \times \text{Quantity}

However, AI introduces unusual quantities such as input tokens, output tokens, model calls, GPU time, retrieval operations, evaluation runs, agent steps, tool calls, and human-review events. FinOps therefore recommends connecting cloud costs to business-unit economics rather than viewing infrastructure spending in isolation.

Case C Parent: Bid / No-Bid Under Agentic AI Pressure

· 2 min read
AI Playbook author

Case C parent. A multi-country banking group issues an “enterprise agentic AI” RFP: aggressive timeline, outcome guarantees on cost reduction, broad liability for model outputs, vendor-shaped specs, unclear data residency. Partners want the logo. Pursuit cost is high. This parent states the decision pattern; expanded articles show qualification/independence and commercial realism.

Databricks Enterprise GenAI Engineering: AI Search, Unity AI Gateway, MLflow 3, AI Functions, LLMOps and Genie One

· 37 min read
AI Playbook author

Enterprise generative AI engineering is no longer limited to writing prompts and connecting an application to a large language model. A production AI system must combine software engineering, governed data access, model routing, retrieval, tool execution, evaluation, monitoring, security, cost control and continuous delivery.

Databricks addresses these requirements through an integrated set of capabilities covering the complete GenAI lifecycle: querying foundation models and agents, building custom and low-code agents, connecting agents to governed tools, preparing structured and unstructured data, implementing retrieval with AI Search, deploying agents and applications, governing traffic through Unity AI Gateway, tracing with MLflow, evaluating and monitoring quality, operationalising through LLMOps, and delivering governed experiences through Genie One.

Security, Compliance and Governance for Open-Source and Closed-Source LLM Deployments

· 39 min read
AI Playbook author

Deploying a large language model is not simply a question of choosing between an open-source model and a commercial API. It is an enterprise risk decision involving:

  • What information the system will process.
  • Where that information will travel.
  • Who can access the model, prompts, outputs and logs.
  • What actions the model can perform.
  • How the organisation will detect failures or attacks.
  • Which party is accountable when something goes wrong.
  • What evidence can be presented to auditors, regulators, customers and executives.

Case A Parent: Meridian Insurance GenAI Productivity

· 2 min read
AI Playbook author

Case A parent. Meridian Insurance (composite) faces rising cost-to-serve. The board wants a GenAI plan this quarter. The COO sponsors; the CRO fears hallucination, privacy and audit gaps. Knowledge is fragmented; there is no enterprise evaluation framework. This overview states the decision and outcome. Expanded articles cover discovery, solution/commercial design and delivery.