Forward deployed engineers are big tech’s latest gambit to drive AI adoption

Forward deployed engineers (FDEs) could be the key to driving successful AI deployments, as hyperscalers pledge billions to embed specialists within customer teams.

Last week, Microsoft announced plans to invest $2.5 billion in a new division, the Microsoft Frontier Company. The aim here is to deploy upwards of 6,000 AI experts and engineers inside customer organizations.

These specialists will work with enterprises to co-design and build AI systems in a bid to accelerate adoption rates, according to the tech giant.

The announcement came just days after Amazon Web Services (AWS) announced similar plans with a $1 billion investment in its Forward Deployed Engineering segment, once again aimed at bolstering customer AI capabilities.

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With the scale of investment – and sheer number of engineers required – for AWS and Microsoft’s push on this front, FDEs are rapidly emerging as the most sought-after technology professionals globally.

Alastair Williamson‑Pound, CTO at Mercator Digital consultancy, told ITPro that the focus on FDEs is an “exceptionally strong signal” that this could become a key growth area for the industry – and a vital pool of talent to drive AI adoption.

“FDEs have become increasingly critical because they sit inside the client, where they can drop barriers, cut through red tape, and get in front of the decision-makers quickly,” he said.

“It’s perhaps why we’re increasingly seeing them considered as a commercial weapon by cloud providers to secure long-term relationships and spend,” he added.

“Another good aspect is that pricing is fixed and based on outcomes rather than time and materials (T&M), which gives customers greater certainty around delivery.”

Williamson‑Pound noted that this aligns with “what companies are after these days”, mainly support in pushing AI adoption projects from pilot to production.

AWS noted that its FDE strategy aims to “compress timelines from months to days” in terms of AI progress, and is “designed so customers are self-sufficient when a deployment ends”.

“Those organizations that are stuck between piloting and deployment can be given that final push by [an] FDE,” he commented.

“The training and documentation they leave behind also tends to give customers that final confidence boost, helping internal teams continue developing and maintaining the system by themselves.”

The rise of forward deployed engineers

Microsoft and AWS are by no means the first big tech providers to put their faith in FDEs. Palantir somewhat pioneered this approach more than a decade ago, and other companies in the AI space have ramped up activities on this front.

As ITPro reported in May, OpenAI launched a new consultancy arm aimed at embedding engineers within customer organizations.

A key distinction here, however, is that the OpenAI Deployment Company is a standalone entity, while both Microsoft and AWS have their own internal divisions dedicated to FDEs.

Crucially, both moves mark the latest attempt by big tech providers to move the needle with regard to enterprise AI adoption, which research shows has been sluggish and at times underwhelming.

Analysis from PwC in January this year found that executives have become increasingly restless when it comes to returns on investment (ROI). Separate research, meanwhile, shows a significant portion of AI projects fail at the first hurdle.

A key factor in adoption project failure often lies in technical capabilities, or lack thereof, according to research from Dynatrace.

With this in mind, providing enterprises with a helping hand throughout the process could provide a much-needed boost for IT leaders.

Initial feedback on Microsoft’s FDE activities show promise on this front, according to Judson Althoff, CEO of Microsoft’s commercial business. In a blog post last week, Althoff claimed that early results have demonstrated “meaningful impact”.

The tech giant embedded engineers within the London Stock Exchange Group (LSEG), for example, helping accelerate AI adoption and providing finance pros with tools to provide answers to complex queries.

Close collaboration between Microsoft’s FDEs and frontline staff at LSEG helped streamline adoption and essentially create a foundation for future improvements, according to Althoff.

“The solution is underpinned by a foundation that is iteratively refined through client feedback and real-time user testing that accelerates each cycle and steadily improves model quality and scope,” he wrote.

Partnerships with Unilever and Novo Nordisk have also delivered marked improvements in terms of AI adoption, Althoff noted.

How FDEs work

FDEs essentially operate like systems integrators (SI), albeit with a few notable distinctions. An SI, for example, is typically an external contractor used to streamline the adoption of individual solutions.

With FDEs, these engineers act as consultants embedded directly within the enterprise. They also offer technical guidance, but it’s the practical support in terms of custom product development that’s a key differentiator. Simply put, they’re building alongside your own engineers.

“Typically, FDEs work in small pods for a fixed period of time, during which they sit within the engineering and technical teams of the client, writing production grade code,” Williamson-Pound explained.

“They leave the customer with a working system in place supported by full documentation, as opposed to an implementation plan.”

JetBrains CEO Kirill Skrygan told ITPro there are a range of benefits to using FDEs for enterprises, and they’re more than just a temporary boost to engineering capabilities.

“FDEs work closely with customers to translate complex organizational challenges into solutions that technology can actually deliver. Doing that well requires more than coding ability," he said.

“It demands architectural expertise, technical leadership, communication skills, and sound business judgment — all qualities that are difficult to automate.”

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