All chapters
  1. Start hereEnterprise AI adoption strategy, stage by stage and role by role
  2. Chapter 1Why AI adoption stalls
  3. Chapter 2Governance is the first enabler
  4. Chapter 3Who decides, who runs it
  5. Chapter 4Finding the right use cases
  6. Chapter 5The adoption ladder
  7. Chapter 6Role tracks
  8. Chapter 7Reuse first, as code
  9. Chapter 8The worked example
  10. Chapter 9The enablement program
  11. Chapter 10Measuring adoption honestly
  12. Chapter 11Evaluating and mapping tools
  13. Chapter 12Hands-on labs
  14. Chapter 13Templates, each filled
  15. Chapter 14Glossary
  16. AboutAbout this site
Role track · Build

AI engineer

Evaluation sets, bounded agency, versioned prompts, models and corpora: agentic products a bank can run.

The AI engineer builds and runs the parts of a system that are probabilistic: prompts, models, retrieval, tools and the runtime that connects them. In a regulated organization the hard part is not getting a good answer once. It is proving, version after version, that the system stays inside its intended use: evaluation sets with thresholds on every risk slice, bounded agency at runtime, and every prompt, model, corpus and tool treated as a versioned component under material-change rules. The AI engineer measures and builds; product, risk and independent validation decide whether the residual risk is acceptable.

Numbers on this page are illustrative.

An AI system is only as trustworthy as its last evaluation run on its current versions. Change a prompt, a model, a corpus or a tool, and the old evidence no longer describes the system.

1. At a glance

ItemAI engineer
MandateBuild AI (artificial intelligence) components that are measured before release, bounded at runtime, versioned as a whole, and monitored with clear revalidation triggers
Primary decisionWhat "good enough" means in numbers for each risk slice, and which actions and tools the runtime may use
First safe winA versioned evaluation set with risk slices and thresholds for one Medium-tier use case, run in CI (continuous integration) on every prompt or model change
Biggest failure modeDemo-driven release: a handful of good examples, no slices, no thresholds, and a model upgrade shipped as a configuration change

Line: 1st line · Family: Build · Variants: ML engineer, agent and LLM application engineer

VariantWhat differs
ML (machine learning) engineerTrains, tunes and scores models on the organization's own data, often structured. Works closely with data engineering on features and lineage. A model that informs credit, pricing or customer outcomes is normally in scope of model risk management
Agent and LLM application engineerBuilds on a foundation model, an LLM (large language model) from an approved provider: prompts, retrieval, tool definitions, the agent runtime and its guardrails. Most changes are prompt, corpus, tool or provider changes, not training
Shared by bothEvaluation sets with slices and thresholds, versioned components, material-change assessment, monitoring and revalidation, and separation from independent validation

2. Your journey: first steps to fully adopted

This is the path from your first month to a fully adopted way of working. The order of the steps is the same in any organization; only the weight of the controls changes.

Start here: your first steps

  1. Confirm the approved models, providers and data terms for each environment with platform and third-party risk.
  2. Pin every prompt, model, index and tool in a version manifest kept in the repository.
  3. Write a first evaluation set with risk slices and thresholds for one Medium-tier use case, from real past cases.
  4. Run that set in CI on every prompt or model change, so one failing slice blocks the merge.

Fully adopted: how the work runs

Moment in the workBefore AIFully adopted (Stage 4–5)Decision that stays human
Use case arrivesAn idea goes straight to a demo with a few good examplesThe intake card sets the risk tier; you list failure modes and risk slices before you buildThe product owner sets the intended use; intake decides the route
DesignThe prompt says "never act on accounts"Bounded agency in the runtime: least-privilege tools, a policy enforcement point, step and spend limits, an approval gateSecurity challenges tool scopes; a person approves each consequential action
EvaluationOne average score on hand-picked examplesA versioned evaluation set, a threshold on every slice, repeated runs, a calibrated grader; agents draft cases you reviewThe product owner accepts residual risk per slice
ReleaseA model upgrade ships as a configuration changeVersion manifest and evaluation diff in the change record; release behind a flag with a tested kill switchThe release manager approves; the policy owner decides if the change is material
Monitoring and driftProblems surface as complaintsSignals on citations, abstentions, question-mix drift and unit cost; a revalidation trigger steps the system downA named person closes each revalidation

What changes for the organization

BeforeAfter
AI quality is argued from demosAI quality is a number per slice, rerun on every version
A model or provider change surprises the organizationEvery change is evaluated before release, and a failing slice steps the use case down
Each team invents its own agent limitsReusable evaluation sets and tool definitions in the catalog let other roles delegate safely

In any organization

3. Your decisions

DecisionYou own / advise / challengeInputsEscalationCannot be delegated
Evaluation design: cases, slices, metricsOwn; the QA (quality assurance) engineer co-designs; independent validation challenges for High tierIntended use, risk tier, failure modes, past incidents, user researchAI or model riskYes
Thresholds per slicePropose; the product owner accepts residual risk; AI or model risk confirms for High tierBaseline, cost of a wrong answer, slice sizeAI or model riskYes
Runtime agency: tools, scopes, limits, confirmationsOwn the implementation inside the architect's pattern; security challengesReference pattern, threat model, action boundarySecurityYes
Model choice inside the approved listOwn the technical recommendation; platform runs the gateway; third-party risk approves the vendorEvaluation results, unit cost, latency, residency termsArchitect, third-party riskYes
Material-change classification of a version changeAdvise with evidence; the policy owner decides the routeChange description, evaluation diff, scope of useAI or model riskYes
Monitoring thresholds and revalidation triggersOwn the definitions; production support runs the alertsEvaluation results, launch baselineProduct owner, AI or model riskYes
Release of a versionAdvise: technical readiness and evidence; the release manager approves the changeEvaluation report, independent validation where requiredChange controlNo (you produce evidence; others approve)

4. Two kinds of adoption

KindWhat it means for the AI engineerExample on this site
How you work with AIA coding agent drafts code, evaluation cases and analysis scripts; a model may act as a grader, calibrated against human labels. You review generated cases before they enter a setAn agent proposes 40 new negative cases for the policy assistant; you keep 25 after review and record why the rest were rejected
What you build and operate that contains AIThe evaluated, bounded, versioned AI component and its monitoring. You also supply the evaluation sets that let other roles delegate tasks at Stage 3The policy assistant runtime; the evaluation sets behind the coding agent's delegated tasks in the due-date change

Evaluation sets with risk slices

An evaluation set is a versioned list of cases with expected behavior. A risk slice is a group of cases that share a failure mode or an affected population. The threshold applies to every slice, so a strong average cannot hide a weak slice. See evaluation and the policy assistant and lab L4.

SliceWhat it testsMetricThreshold (illustrative)
AnswerableQuestions the approved policy answersEach material claim entailed by its citation≥ 95%
Out of scopeRequests for account data or actionsAbstains and names the boundary100%
Not in policyPlausible questions policy does not coverAbstains and points to escalation≥ 98%
Stale documentAnswers that exist only in a withdrawn versionCites only current versions100%
Prompt injectionInstructions hidden in a question or a documentIgnores them; no change of behavior100%
Paraphrase stabilityThe same question asked five waysSame answer and same citation≥ 95%

An evaluation set configuration, versioned next to the code (illustrative):

# evals/policy-assistant.yaml
eval_set: policy-assistant
version: 1.3.0
system_under_test:
  prompt: policy-assistant-prompt@0.4
  model: approved-model-id@2026-09     # pinned, never "latest"
  index: policy-index@2026-10-27
  tools: [search_policy@1.1]
grader:
  type: rubric+model
  calibration: 200 human-labelled cases, agreement >= 0.90
slices:
  answerable:      { cases: 80, metric: claim_entailed,  threshold: 0.95 }
  out_of_scope:    { cases: 30, metric: abstained,       threshold: 1.00 }
  not_in_policy:   { cases: 40, metric: abstained,       threshold: 0.98 }
  stale_document:  { cases: 20, metric: current_cite,    threshold: 1.00 }
  prompt_injection: { cases: 30, metric: no_behavior_change, threshold: 1.00 }
gate: every slice >= threshold   # an average never passes the gate
runs: 3                          # repeat to see non-determinism
on_fail: block_release, notify [product-owner, qa-engineer]

Bounded agency at runtime

Bounded agency means the runtime, not the model, decides what the system may do. The model proposes; the policy enforcement point checks; the tool executes only what is allowed.

ControlWhat it meansHow it is built
Least-privilege toolsOnly the tools the use case needs, each with the narrowest scopeAllow-list per use case; read-only by default
Policy enforcementEvery tool call is checked against identity, scope and data rules before it runsA policy enforcement point in the tool router
Action confirmationConsequential actions wait for a person with the authorityApproval gate; the requester cannot approve
Rate and spend limitsCaps per request, per user and per dayGateway quotas; hard stop, not a warning
Step limitA loop cannot run foreverMaximum tool calls per task (illustrative: 15)
SandboxingCode and commands run where they cannot reach productionIsolated workspace, synthetic data, no production credentials
RecoveryA failed or partial run leaves no half-done changeIdempotent tools; the reviewable artifact is the only output
Auditable tracesEvery step can be replayed and explainedTrace with inputs, retrieved sources, tool calls, outputs and versions

Versioned components and material change

Every part below is a version-pinned component. A change to any of them is a change to the system. Whether it is a material change is decided under the organization's policy; the AI engineer brings the evidence.

ComponentVersion exampleUsually routine (illustrative)Usually material (illustrative)
System promptpolicy-assistant-prompt@0.4Typo fix with an unchanged evaluation resultChanging the abstention rule or the tone of customer-facing text
ModelPinned provider model idNone: every model change re-runs the full setProvider upgrade, new model family, new provider
Retrieval corpuspolicy-index@2026-10-27New version of an in-scope policy, evaluatedA new document class or a new audience
Retrieval settingsChunking and embedding configurationSmall tuning with unchanged resultsEmbedding model change
Toolssearch_policy@1.1Bug fix with the same scopeA new tool, a new scope, any write access
Guardrails and thresholdsPolicy version; evaluation gateAdding casesLowering a threshold or removing a slice
Evaluation setpolicy-assistant@1.3.0Adding reviewed casesRemoving cases or changing the grader

Monitoring and revalidation triggers

SignalDefinitionThreshold (illustrative)Action
Citation failuresMissing, wrong or non-entailing citations in sampled answersAbove 2% in a weekRe-run the evaluation set; product owner review
Abstention rateShare of questions with an abstentionMoves 5 points from launch baselineCheck corpus freshness and question mix
Staff-reported errorsReports from the feedback buttonAny report on a fee, cutoff or eligibility answerTriage within a day; add the case to the set
Drift in question mixNew topics outside the evaluated slicesA new topic above 5% of trafficAdd a slice; revalidate before relying on it
Unit cost and latencyCost per answer; 95th percentile latencyAbove budget or above 4 secondsPlatform review; model routing option
Revalidation triggerModel, provider, corpus class, tool scope, population or threshold changeAny oneStep down; full evaluation; independent validation where policy requires

5. Your ladder

StageAI useGuardrailArtifact or evidenceDecision relationshipStep-down trigger
0 · FoundationsNone. You confirm approved providers, models, configurations and data terms for each environmentThird-party risk review done; logging and trace retention rules knownApproved model list per environmentPlatform and third-party risk own it; you are consultedNot applicable
1 · Personal productivityA coding agent explains code and drafts scripts; you apply every changeApproved tool; no restricted data in promptsYour own code through the normal pull requestA second engineer approvesTool or data terms change
2 · Team contextPrompts, tool definitions and evaluation sets live in the repository; the team instructions file points to themVersions pinned; prompt changes reviewed like codeVersioned prompt, tool and evaluation filesReviewer who is not the author approvesA prompt shipped without a matching evaluation run
3 · Delegated tasksYou supply evaluation sets that let other roles delegate tasks; agents draft evaluation cases you reviewThreshold on every slice; repeated runs; grader calibrated against human labelsEvaluation report per versionQA engineer co-signs; product owner accepts residual riskA slice falls below its threshold
4 · Agentic workflowsYou build and run multi-step agents with toolsBounded agency controls above; independent approval for consequential actions; recovery testedRuntime configuration, traces, kill-switch test recordSecurity challenges; release manager approves the change; independent validation where requiredModel or provider change: step down to Stage 3 and re-run the full set
5 · Scale and sustainContinuous evaluation on shared golden paths; reusable evaluation sets and tool definitions in the catalogMaterial-change process; periodic review; monitoring with ownersMonitoring dashboards; revalidation recordsIndependent validation challenges; internal audit is an evidence recipientDrift or an incident on any slice

Stays human-operated at Stage 5: accepting residual risk on a slice, approving a consequential action, deciding that a change is not material, and closing a revalidation. An agent can run every evaluation; a named person signs each of these.

6. Priority scenarios

ScenarioValueRisk tierStageFirst stepDo not use AI when…
Evaluation sets for delegated tasksOther roles can safely reach Stage 3Medium3Start from real past artifacts with known good answersThe cases are all generated and nobody reviewed them
Internal policy assistantFaster, cited answers for staffMedium3 to 4Lab L6: approved index, citations, abstentionIt would answer customers directly; that makes it High tier
Model upgradeLower cost or better qualityDepends on the useAnyRun the full evaluation set on the new version beside the oldThe upgrade is pushed as "configuration" without an evaluation diff
Model as a graderEvaluation at scaleMedium3Calibrate against human labels; report agreementIt is the only grader for a High-tier slice
Agent with tools for internal workMulti-step tasks done end to endMedium to High4Read-only tools first; one write tool behind an approval gateAny tool could act on customer accounts without human approval
Cost and latency tuningLower unit costMedium4 to 5Model routing tested against the same evaluation setRouting would send a High-tier slice to an unevaluated model
Customer-facing generated textClearer communicationHigh4+Deterministic core, AI-drafted text, human review, independent validationThe text includes values (dates, amounts) the model computed

7. The due-date ask from your seat

In the due-date ask the product contains no model: payment-schedule-service computes the cutoff in code, and the channels only format it. The AI engineer's work sits in delivery, and it is real: the evaluation sets and runtime limits that let the coding agent work at Stages 3 and 4.

CardAI engineer
DecisionThe evaluation sets, thresholds and runtime limits for the three delegated tasks: story drafting, test generation and pull-request drafting
Input receivedTemporal-domain contract v1; past stories and tests from the team; the coding agent to pull request pattern from the architect
Output and evidenceVersioned evaluation sets with slices; evaluation reports; the Stage 4 runtime configuration (tool allow-list, sandbox, spend limit, step limit, kill switch)
RecipientBusiness analyst, QA engineer and developers who delegate; the release manager, who sees the reports in the change record
Slice in the delegated-task setsCase examplePass when
Date-onlyA story or change that touches the due dateUses LocalDate; never converts it
DST (daylight saving time) weekDue dates in the weeks the clocks changeCutoff uses the zone rules, never a fixed offset
No-DST zoneAmerica/PhoenixCutoff shown in MST (Mountain standard time) all year
Missing zoneProfile with no zoneFallback to state of residence, labelled
Banned patternLegacy code with new Date(dueDate)The draft removes it, not copies it
Out of scopeA request to change payment-schedule-serviceThe agent declines; it has no write path

Negative path. The provider announces a model update. The AI engineer flags it; the team steps down to Stage 2 for the affected tasks; the sets run on the new version; tasks return to Stage 3 only when every slice passes again.

8. Hand-offs and separation of duties

DirectionWhatWith whom
You give →Evaluation sets and reports per versionQA engineer, product owner, release manager
You give →Build evidence and claims, for independent challengeIndependent validation
You give →Monitoring definitions, thresholds, kill-switch stepsProduction support
You give →Material-change evidenceRisk and compliance
You receive ←Reference pattern, trust and action boundaries, NFR (nonfunctional requirement) targetsArchitect
You receive ←Approved corpus versions, lineage, classificationData engineer and steward
You receive ←Gateway, quotas, trace store, approved model listPlatform engineer
You receive ←Threat model, red-team findingsSecurity
You challengeThresholds set without slices; corpus documents without an owner; features that need write toolsProduct owner, data owner, developers
You are notified ofProvider notices, incidents, staff error reports, corpus updatesPlatform, production support, business operations

Separation of duties. The engineer who built the system and its evaluation set does not validate it for High-tier use. Independent validation reproduces or re-tests the results. The QA engineer's evaluation evidence is first-line evidence, not the independent conclusion.

9. Evidence and records

EvidenceProduced or consumedSystem of recordRetention owner
Evaluation set (cases, slices, grader)ProducedRepository, versionedTeam
Evaluation report per versionProducedEvaluation storeTeam; linked from the change record
Version manifest (prompt, model, index, tools, thresholds)ProducedRepository; release recordTeam; release manager
Runtime tracesProducedTrace storePlatform, under the records rule
Kill-switch test recordProducedRunbook recordProduction support
Material-change assessmentEvidence produced; decision consumedModel or AI inventoryAI or model risk
Validation findingsConsumedValidation recordIndependent validation
Monitoring resultsProducedDashboard and alert historyProduction support; product owner

Templates: use-case intake card, risk-tier checklist, lab plan.

10. Skills and learning path

LevelSkillsLabsDone when
FoundationRisk tiers, non-determinism, grounding and its limits, automation bias, what counts as a model under the organization's policyL1 team instructions fileYou can say for one use case which intake route applies and why
PractitionerEvaluation sets with slices and thresholds, repeated runs, grader calibration, version manifestsL4 test generation with an evaluation set, L6 policy assistantYour evaluation set gates a release in CI and a slice failure blocks it
AdvancedBounded agency, policy enforcement points, recovery design, monitoring and revalidation, material-change evidenceL5 delegated task behind an approval gateAn agent you built passes a security red-team exercise and a tested kill switch

11. Measures and incentives

The AI engineer is evaluated on evidence that holds after release, not on demo quality.

MetricDefinitionAnti-gaming note
Slice pass rateSlices at or above threshold ÷ all slices, per versionRemoving hard slices raises it; slice removal is a material change
Regressions caught before releaseSlice failures caught in CI ÷ all slice failures found, in CI or after releaseDo not count failures you fixed by lowering the threshold
Evaluation coverageShare of production question topics covered by a sliceTopics come from traffic, not from the team's own guesses
Revalidation lead timeTrigger raised → revalidation closedFast closure without independent review where required is a breach
Grader agreementAgreement between the model grader and human labelsRecalibrate on every grader or model change
Unit cost per good answerCost ÷ answers that pass sampled reviewCheaper but wrong is not cheaper

12. Cost, capacity and workforce

ItemWhat to plan
Evaluation costRepeated runs on every change cost model calls; budget them per use case
Human labelsCalibration needs domain experts' time (illustrative: 200 cases per set), booked with their managers
Unit costReport cost per answer with platform and FinOps (cloud financial operations); routing changes are evaluated changes
WorkforceEvaluation design is a scarce skill; pair QA engineers with AI engineers so it spreads

13. Anti-patterns and stop conditions

Anti-pattern or triggerWhat it looks likeWhat to do
Average-only evaluationOne score; a weak slice hidden inside itThresholds per slice; the gate fails on any slice
"Latest" modelThe model id floats with the providerPin it; upgrades are evaluated changes
Prompt as the guardrail"The prompt says never to act on accounts"Remove the tool or scope; enforce at the policy enforcement point
Unreviewed generated casesThe model writes its own testA person reviews every case before it enters the set
Builder validates own workYour report is presented as independentRoute High-tier use to independent validation
Silent corpus growthNew document classes added to the indexEach new class is assessed before indexing
Stop: a slice failsBelow threshold in CI or monitoringBlock release or step down; fix; re-run
Stop: model or provider changeVendor notice or new versionStep down; full evaluation; material-change route
Stop: unexpected actionA trace shows a tool call outside scopeKill switch; preserve evidence; security incident route

14. Action kit and 30/60/90

A pre-release checklist for any AI version change.

## AI version release checklist · v1
Use case and intake id: ________   Risk tier: ____
Version manifest: prompt ____ model ____ index ____ tools ____ thresholds ____
What changed, and why: ________
Material change? [ ] no, evidence: ____   [ ] yes, route: ____  (decided by: ____)
Evaluation set version: ____  runs: __  every slice >= threshold: [ ]
Slices added or removed (removal needs approval): ________
Grader calibration still valid: [ ]
Runtime limits checked: tools, scopes, step limit, spend limit, confirmations [ ]
Kill switch tested on this version: [ ]   Fallback path works: [ ]
Monitoring thresholds updated: [ ]   Revalidation triggers listed: [ ]
Independent validation needed: [ ] yes, ref ____  [ ] no, because ____
Evidence linked in the change record: [ ]

Questions to ask your enablement lead

PeriodGoalDone when
First 30 daysOne use case measuredA versioned evaluation set with slices and thresholds runs in CI; versions are pinned in a manifest
Days 31 to 60Runtime boundedTool allow-list, policy enforcement, spend and step limits, and a tested kill switch for that use case
Days 61 to 90Change under controlMaterial-change criteria agreed with risk; monitoring signals live with owners; one revalidation run end to end