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Workforce Transformation
with AI

By Connor Holm•September 21, 2026•Strategy•7 min read

AI collapses the cost of building software. That changes two things at once: how many people a product team needs, and where engineering can afford to go. This is a look at both transformations, the scrum team of the future and the forward deployed engineer, and the operating model that makes them work together.

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The Deck

Two Transformations. One Enabler.

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The Thesis

Two Transformations

The enabler: AI changes both how many people a team needs and where engineering can go

01 · Scrum Team of the Future02 · Forward Deployed Engineers
MissionBuild the known roadmap, fasterFind and attack the unknown
WhereInside an existing product teamEmbedded with the business, where engineering is not
ShapeSmaller pods, same outputSmall, senior, generalist
HorizonLong lived ownershipWeeks. Scope, prove, hand off
Judged onThroughput and qualityBusiness value delivered
01 · Scrum Team

Smaller Pods, Same Output

The scrum team of the future

Traditional product teams are five or more people, sized for the effort it used to take to write, test, and ship code. With AI absorbing much of the build work, groups of three can deliver the same result.

The work does not change. The number of people it takes to deliver it does. Roles stay distinct, and each person still specializes in a part of the software lifecycle, but there are fewer handoffs and far less coordination overhead.

The real payoff is portfolio shape. More pods from the same headcount means more parallel bets, and pods become the natural long term owners of whatever forward deployed engineers prove out.

01Roles stay distinct across the SDLC
02Fewer handoffs, less coordination overhead
03More pods from the same headcount
04Pods own what FDEs prove out
02 · FDEs

The Swiss Army Knife

What a forward deployed engineer actually is

Forward deployed engineers are the first people in. They scout the lay of the land before anyone commits a roadmap, then pull out whichever tool the situation needs.

They sit with the business to map the process, the systems, the data, and the people. They separate the real problem from the requested one. They put working software in front of real users in days, wire it into the systems the business already runs on, and package it so a team can own it long after they move on.

Just as important, they tell the business when AI is the wrong answer, and what to do instead.

01Discover
02Scope
03Prototype
04Integrate
05Advise
06Hand off
03 · Where FDEs Go

Attacking Technical Deserts

Real, expensive problems with no engineering coverage

Every large organization has technical deserts: parts of the business with real, expensive problems and no engineering coverage. The work runs on spreadsheets, inboxes, and heroics.

A platform team can't help, because there is no roadmap and nobody has defined the product yet. A scrum team can't help either, because there is no backlog. The requirements do not exist until someone goes and finds them.

FDEs create both. Discovery turns into a scoped problem, then a working prototype, then something a team can own.

01Finance and risk modeling in fragile, manual workflows
02Vendor and third party management across email and trackers
03Executive office work: briefings, follow ups, decision support
04Operations teams doing high volume, repeatable judgment work
04 · Engagements

From Scouting to Handoff

How an engagement runs, and who should own it

An engagement moves through five stages: scout, scope, triage, build, and measure. The FDE embeds with the business, names the problem and success metric, baselines today's process, prototypes on a paved road with weekly user feedback, and reports the delta before transitioning to an owning team.

Engagements are short and time boxed. If one has not shown value by the end of the box, it gets re-scoped or stopped.

Not every use case earns an FDE. Ambiguous, cross-boundary problems that no team owns go to an FDE. Well defined, long lived feature work in an existing product goes to a scrum team. And some problems belong with neither: a process change, an off the shelf tool, or a value case that does not justify the build. An FDE who concludes "this belongs with a scrum team" has run a successful engagement, not a failed one.

01Scout
02Scope
03Triage
04Build
05Measure
05 · Value

Measuring AI Transformation

How engagements are judged

Value shows up in four places: time (hours saved, cycle time from request to result), money (cost avoided, revenue protected, spend consolidated), productivity (throughput per person, manual steps removed), and adoption (active users, old workflows actually retired).

Measure today's process before building, so the result is a delta, not a claim. And weigh more than dollars. Risk reduced, decision quality, and what the organization learned all count too.

01Time
02Money
03Productivity
04Adoption
06 · Enablement

The Paved Road

What a successful FDE program runs on

FDEs are only fast if the road is paved. That means an internal rapid prototyping platform: templated scaffolds for common shapes (web app, API, agent, RAG), a shared model gateway, safe data access through masked or synthetic data, and one step deploys with auth and logging built in.

It also means getting through enterprise red tape once, at the platform level, so every engagement inherits the approval instead of re-fighting it: a pre-approved cloud landing zone, an approved model catalog with clear rules on which data classes can touch which models, a security and privacy fast lane, and responsible AI review built into the lifecycle.

Finally, the practice has to compound. One front door for intake, a visible pipeline from scout to handoff, a reuse library of components and prompts, short lessons learned after every engagement, and a value ledger that rolls up outcomes across the practice.

01Rapid prototyping platform
02Approved infrastructure and AI governance
03Knowledge sharing and engagement tracking
07 · Together

One Operating Model

How the two transformations fit together

FDEs discover a problem in a technical desert and prove value against a baseline. A pod of three takes ownership and hardens it. Running it in production surfaces the next opportunity, and that goes back to the FDEs.

FDEs keep the pipeline of new work full. Pods turn proven work into durable products. Neither works as well alone.

01FDE: Discover
02FDE: Prove
03Pod: Scale
04Pod: Surface
08 · Starting Out

The First 90 Days

Standing up a practice today

Days 0 to 30 are foundation: secure an executive sponsor, open the governance conversation with security, legal, and privacy, and stand up a minimum paved road.

Days 30 to 60 are the first deserts: pick two or three with visible pain and a willing partner, baseline them before building, and run the first engagements.

Days 60 to 90 are prove and publish: ship, measure, and share results widely, open the intake front door, and start the knowledge base from day one. Hire versatile generalists over narrow specialists: builders who are comfortable with ambiguity, can talk with the business, and can ship end to end on their own.

01Foundation
02First deserts
03Prove and publish

Standing up a practice of your own?

We help teams find their technical deserts, prove value quickly, and hand off work their own engineers can own. If that is the shift you are planning, that is where we work.