2023 was the year artificial intelligence became real for mainstream adoption. ChatGPT (launched late 2022) showed what was possible, and 2023 delivered the infrastructure, tools, and applications to make it practical. It was also a year of continued economic adjustment for tech. Let’s review what happened.
The AI Story
Key Milestones
ai_milestones_2023:
march:
- GPT-4 released (major capability jump)
- Claude launched to public
- AI safety concerns intensified
may_june:
- OpenAI ChatGPT plugins
- Google Bard improvements
- AI coding assistants became mainstream
july_august:
- Llama 2 open sourced
- Enterprise AI adoption accelerated
- Vector databases became essential
november:
- OpenAI DevDay (GPT-4 Turbo, Assistants API)
- Custom GPTs announced
- 128K context windows
throughout:
- RAG became standard pattern
- AI features in every product
- Prompt engineering as discipline
What Changed
paradigm_shifts:
from_experimental_to_production:
before: AI as interesting demo
after: AI as production feature
evidence: Every major product adding AI
from_one_model_to_many:
before: Use GPT-4 for everything
after: Model routing, specialized models
evidence: Open source models competitive
from_basic_to_compound:
before: Single LLM call
after: RAG, agents, multi-step pipelines
evidence: Standard architecture patterns
from_text_to_multimodal:
before: Text in, text out
after: Images, documents, audio
evidence: GPT-4V, multimodal applications
Technology Evolution
What Matured
technology_maturation:
vector_databases:
state: Essential infrastructure
options: Pinecone, Weaviate, pgvector, Qdrant
adoption: Mainstream
rag_architecture:
state: Standard pattern
evolution: Basic → hybrid search → advanced retrieval
adoption: Default for knowledge applications
agent_frameworks:
state: Experimental → early production
tools: LangChain, LlamaIndex, custom
adoption: Growing but cautious
ai_observability:
state: Emerging
needs: Cost tracking, quality monitoring, debugging
adoption: Early stage
prompt_engineering:
state: Recognized discipline
practices: Templates, versioning, testing
adoption: Variable maturity
What Surprised
2023_surprises:
open_source_competitiveness:
expectation: OpenAI dominates
reality: Llama 2, Mistral competitive for many use cases
implication: More choices, less lock-in
cost_reduction:
expectation: AI stays expensive
reality: 10x cheaper over the year
implication: New use cases viable
enterprise_adoption_speed:
expectation: Slow, cautious adoption
reality: Rapid experimentation, production deployments
implication: AI skills in demand
capability_ceiling:
expectation: Continuous capability improvement
reality: Impressive but plateauing on some benchmarks
implication: Engineering around limitations matters
The Broader Industry
Economic Reality
industry_state_2023:
layoffs_continued:
- More companies right-sizing
- Efficiency focus sustained
- Hiring more selective
ai_investment:
- Counter-cyclical AI investment
- AI skills premium
- AI startups well-funded
profitability_focus:
- Growth-at-all-costs ended
- Unit economics matter
- Sustainable business models
remote_work:
- Return-to-office pressure
- Hybrid as compromise
- Async practices improved
What I Learned
personal_learnings:
ai_engineering:
- It's a new discipline, not just ML
- Engineering practices matter as much as AI
- Build for failure and iteration
product_strategy:
- AI features need clear value proposition
- "Add AI" is not a strategy
- User problems first, AI second
team_leadership:
- Help team navigate AI adoption
- Balance experimentation and delivery
- Skills development matters
technical_choices:
- Start simple, add complexity as needed
- Abstractions help but have costs
- Own what's core, use services for rest
Looking to 2024
What I’m Watching
2024_watch_list:
ai_agents:
expectation: More autonomous systems
challenge: Reliability and safety
opportunity: Complex task automation
multimodal_expansion:
expectation: Video, audio, documents
challenge: Cost and latency
opportunity: New application categories
open_source_ai:
expectation: Continued improvement
challenge: Catching frontier models
opportunity: More deployment options
ai_regulation:
expectation: More concrete rules
challenge: Compliance complexity
opportunity: Trust and differentiation
enterprise_maturity:
expectation: Beyond POC to scale
challenge: Production reliability
opportunity: AI infrastructure market
My Priorities
priorities_2024:
skills:
- Agent architectures and safety
- Multi-modal applications
- AI system reliability
- Cost optimization at scale
content:
- Practical production patterns
- Real-world case studies
- Emerging architecture guidance
professional:
- Help organizations adopt AI effectively
- Bridge strategy and implementation
- Build sustainable AI practices
Key Takeaways
For Engineers
- AI engineering is a real discipline now—learn it
- RAG is the baseline; learn advanced patterns
- Reliability engineering for AI is essential
- Cost optimization matters at scale
- Stay current—the field moves fast
For Leaders
- AI features need strategy, not just technology
- Build AI capabilities in your team
- Understand trade-offs between build and buy
- AI creates new categories of technical debt
- Responsible AI is competitive advantage
For Everyone
- 2023 proved AI is transformative, not hype
- The hard work of making it reliable is just starting
- Skills in AI engineering are valuable
- The companies that execute well will win
- We’re still early in this transformation
Final Thoughts
2023 was the year AI became real. ChatGPT showed the potential; 2023 built the foundation for actually using it. The technology matured, patterns emerged, and serious production deployments happened.
2024 will be about scale, reliability, and finding where AI truly creates value. The easy experiments are done; the hard work of building sustainable AI-powered products is ahead.
It’s an exciting time to be building software.
Thanks for reading. Here’s to 2024.