AI Insights

Future Proof: Insights from our 2024 AI & Engineering Summit

Highlights from our annual engineering summit

Future Proof: Insights from our 2024 AI & Engineering Summit

Highlights from our annual engineering summit

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https://www.iconiqcapital.com/growth/insights/future-proof-insights-from-our-2024-ai-engineering-summit

Stay Ahead with ICONIQ Growth

In the rapidly evolving landscape of technology, staying ahead requires more than just innovation; it demands foresight and adaptability. Recently, we brought together over 100 leading technologists in the Bay Area for our third annual Engineering Summit: Future Proof. This year’s theme centered around preparing engineering organizations to embrace the future, focusing on critical topics such as engineering innovation under constraints, scaling teams effectively, and harnessing the power of AI.

The following are some highlights from our conversations:

Innovating Under Constraint

For the past few years, tech companies have entered a new reality of hyper-efficiency; engineering budgets are under increased scrutiny and each hire needs to be justified. However, unlike other functions which can trace investments back to a clear ROI, engineering can sometimes feel like a black box. So how do you lead and operate engineering organizations in the current macro environment where there is a constant need to do more with less?

Matt Eccleston and Mike Curtis, members of the ICONIQ Growth Technical Advisory Board, shared their experiences leading engineering organizations at Airbnb, Dropbox, and vmWare. They emphasized the importance in today’s reality of understanding customer needs, setting clear boundaries for project timelines and resources, and encouraging out-of-the-box thinking to boost efficiency.  

It's also vital to invest in developer tooling. Most organizations do not pay attention to development tooling as a way to make themselves more efficient, and even those that do underestimate the leverage it can provide. Panelists argued that we should actually be utilizing ~15% of the engineering team to do work that can make the other 85% more efficient. In fact, people often underestimate how early you can get started; even at 10 engineers, two people can devote half of their time to thinking about how to streamline the toolchain and enable the team to move faster.

“Investing early is important as the pace of technology development will outpace the growth of an organization.  It sucks to work in a codebase where you have unexplained bugs, you don't know how abstractions work, etc. You want a code environment where it is fun and easy to write code. The harder it is to do that, the more frustration and unhappiness there will be.”  
- Matt Eccleston (ICONIQ Growth Technical Advisory Board)

The Secrets of Scale

Each stage of growth raises new considerations and challenges for technical leaders. Anantha Kancherla, VP Advanced Driving Automated Systems at General Motors, and Ben Smith, Former Technical Advisor to Google CEO, delved into unconventional strategies for scaling engineering teams. They debated the merits of building teams with generalists versus specialists, and the importance of investing early in tools that can help scale engineering efforts.

Above all, they emphasized the importance of aligning organizational structure and teams to the product.  

“You ship your org chart. At Dropbox, we used to say let’s align organization structure to the roadmap for the next year. Let’s not be afraid to have different leaders step up. This allows people to not get tied to egos or certain responsibilities. “
- Aditya Agarwal (Chair of ICONIQ Growth Technical Advisory Board)

It is also important for engineers to build empathy with end users. In the early days at Google, engineers would do one-week rotations with customer support, sales, etc. to get exposure to other roles and understand how what they are building is being sold and used by the world.

As the engineering organization evolves, so does the role of engineering leadership. As teams grow, it’s critical that engineering managers are well-rounded and able to talk to other teams like product and sales. Once the organization moves past 100 engineers, engineering leaders need to be thoughtful about communication. Everyone has a different style—maybe they are good at writing, communicating to the rest of the org, etc.—and this is when the role of an engineering leader transitions to focus on aligning the happiness of people with business priorities. Engineering can often feel like a mysterious black box, especially to non-technical leaders like the CFO or even the Board. An engineering leader’s responsibility is to understand where leverage points and inefficiencies exist in the technical organization and clearly articulate that in non-technical language to the rest of the organization.

You’ve Heard the AI Hype, Now Here’s the Reality

Of course, the impact of AI was top-of-mind at our summit. Keith Adams (ICONIQ Growth Technical Advisory Board), Anantha Kancherla (ICONIQ Growth Technical Advisory Board), Vishwanath TR (Glean Co-founder), and Nikita Shamgunov (Neon CEO) led our closing panel on the practical applications and realities of AI in engineering. The discussion revealed a variety of perspectives on the utilization of AI tools like GPT models and the strategic decisions companies must make regarding cloud services and GPU acquisitions.

"We are betting there will be multiple capable models, and we allow customers to specify models they want to use. We will likely see open-source fine tuned models used for specialized tasks and foundation models for general reasoning tasks."
- Nikita Shamgunov (CEO of Neon)

The panelists also debated AI’s potential to significantly reduce code production time and enhance productivity, even as they recognize the challenges of integrating AI into traditional engineering roles. The machine learning space is still viewed as a specialized field and panelists agree that it is not feasible for software engineers to build ML models from scratch. As a company matures, it will be important to bring in ML researchers who can explore new ideas and approaches that the rest of the engineering team can productize.

"We don't want an exclusive AI team, we want everyone working with AI. The goal of the ML team is to create a platform so the rest of the product and engineering team can infuse the core product with different AI and ML features."
- Vishwanath T.R. (Co-founder of Glean)

Our Future Proof Summit not only provided tactical solutions to current engineering challenges but also sparked broader discussions on the strategic and philosophical aspects of technology's future. We invite you to explore our latest research on the state of engineering in 2024 that further explores these issues and more, including building R&D teams, enhancing developer productivity, and hiring top technical leadership.

Join us on this journey as we navigate the future of engineering together.

Notes

Disclaimer:

Unless otherwise indicated, the views expressed in this presentation are those of ICONIQ Growth (“ICONIQ" or the “Firm"), are the result of proprietary research, may be subjective, and may not be relied upon in making an investment decision. Information used in this presentation was obtained from numerous sources. Certain of these companies are portfolio companies of ICONIQ Growth. ICONIQ Growth does not make any representations or warranties as to the accuracy of the information obtained from these sources. 

This presentation is for general information purposes only and does not constitute investment advice. This presentation must not be relied upon in connection with any investment decision. The information in this presentation is not intended to and does not constitute financial, accounting, tax, legal, investment, consulting or other professional advice or services.  Nothing in this presentation is or should be construed as an offer, invitation or solicitation to engage in any investment activity or transaction, including an offer to sell or a solicitation of an offer to buy any securities which should only be made pursuant to definitive offering documents and subscription agreements, including without limitation, any investment fund or investment product referenced herein. 

Any reproduction or distribution of this presentation in whole or in part, or the disclosure of any of its contents, without the prior consent of ICONIQ, is strictly unauthorized.

This presentation may contain forward-looking statements based on current plans, estimates and projections. The recipient of this presentation ("you") are cautioned that a number of important factors could cause actual results or outcomes to differ materially from those expressed in, or implied by, the forward-looking statements. The numbers, figures and case studies included in this presentation have been included for purposes of illustration only, and no assurance can be given that the actual results of ICONIQ or any of its partners and affiliates will correspond with the results contemplated in the presentation. No information is contained herein with respect to conflicts of interest, which may be significant. The portfolio companies and other parties mentioned herein may reflect a selective list of the prior investments made by ICONIQ.

Certain of the economic and market information contained herein may have been obtained from published sources and/or prepared by other parties. While such sources are believed to be reliable, none of ICONIQ or any of its affiliates and partners, employees and representatives assume any responsibility for the accuracy of such information.

All of the information in the presentation is presented as of the date made available to you (except as otherwise specified), and is subject to change without notice, and may not be current or may have changed (possibly materially) between the date made available to you and the date actually received or reviewed by you. ICONIQ assumes no obligation to update or otherwise revise any information, projections, forecasts or estimates contained in the presentation, including any revisions to reflect changes in economic or market conditions or other circumstances arising after the date the items were made available to you or to reflect the occurrence of unanticipated events. Numbers or amounts herein may increase or decrease as a result of currency fluctuations.

Disclaimer

The views expressed in this presentation are those of ICONIQ Growth ("ICONIQ" or the "firm"), are the result of proprietary research, may be subjective, and may not be relied upon in making an investment decision.  This presentation is for general information purposes only and does not constitute investment advice. This presentation must not be relied upon in connection with any investment decision. The information in this presentation is not intended to and does not constitute financial, accounting, tax, legal, investment, consulting or other professional advice or services. Nothing in this presentation is or should be construed as an offer, invitation or solicitation to engage in any investment activity or transaction, including an offer to sell or a solicitation of an offer to buy any securities which should only be made pursuant to definitive offering documents and subscription agreements, including without limitation, any investment fund or investment product referenced herein.  Any reproduction or distribution of this presentation in whole or in part, or the disclosure of any of its contents, without the prior consent of ICONIQ, is strictly unauthorized. This presentation may contain forward-looking statements based on current plans, estimates and projections. The recipient of this presentation ("you") are cautioned that a number of important factors could cause actual results or outcomes to differ materially from those expressed in, or implied by, the forward-looking statements. The numbers, figures and case studies included in this presentation have been included for purposes of illustration only, and no assurance can be given that the actual results of ICONIQ or any of its partners and affiliates will correspond with the results contemplated in the presentation. No information is contained herein with respect to conflicts of interest, which may be significant. The portfolio companies and other parties mentioned herein may reflect a selective list of the prior investments made by ICONIQ. Certain of the economic and market information contained herein may have been obtained from published sources and/or prepared by other parties. While such sources are believed to be reliable, none of ICONIQ or any of its affiliates and partners, employees and representatives assume any responsibility for the accuracy of such information. All of the information in the presentation is presented as of the date made available to you (except as otherwise specified), and is subject to change without notice, and may not be current or may have changed (possibly materially) between the date made available to you and the date actually received or reviewed by you. ICONIQ assumes no obligation to update or otherwise revise any information, projections, forecasts or estimates contained in the presentation, including any revisions to reflect changes in economic or market conditions or other circumstances arising after the date the items were made available to you or to reflect the occurrence of unanticipated events. For avoidance of doubt, ICONIQ is not acting as an adviser or fiduciary in any respect in connection with providing this presentation and no relationship shall arise between you and ICONIQ as a result of this presentation being made available to you. ICONIQ is a diversified financial services firm and has direct client relationships with persons that may become limited partners of ICONIQ funds. Notwithstanding that a person may be referred to herein as a "client" of the firm, no limited partner of any fund will, in its capacity as such, be a client of ICONIQ. There can be no assurance that the investments made by any ICONIQ fund will be profitable or will equal the performance of prior investments made by persons described in this presentation. Any information in this presentation is directed at, and intended for, only persons who are experienced institutional or professional investors (“professional investors”) as defined by applicable law and regulation. Any person that is not a professional investor is not an intended recipient of this presentation and the matters discussed herein.

For avoidance of doubt, ICONIQ is not acting as an adviser or fiduciary in any respect in connection with providing this presentation and no relationship shall arise between you and ICONIQ as a result of this presentation being made available to you.

ICONIQ is a diversified financial services firm and has direct client relationships with persons that may become limited partners of ICONIQ funds. Notwithstanding that a person may be referred to herein as a "client" of the firm, no limited partner of any fund will, in its capacity as such, be a client of ICONIQ. There can be no assurance that the investments made by any ICONIQ fund will be profitable or will equal the performance of prior investments made by persons described in this presentation.

Any information in this presentation is directed at, and intended for, only persons who are experienced institutional or professional investors (“professional investors”) as defined by applicable law and regulation. Any person that is not a professional investor is not an intended recipient of this presentation and the matters discussed herein.

Copyright © 2024 ICONIQ Capital, LLC. All rights reserved.

Disclaimer

The views expressed in this presentation are those of ICONIQ Growth ("ICONIQ" or the "firm"), are the result of proprietary research, may be subjective, and may not be relied upon in making an investment decision.  This presentation is for general information purposes only and does not constitute investment advice. This presentation must not be relied upon in connection with any investment decision. The information in this presentation is not intended to and does not constitute financial, accounting, tax, legal, investment, consulting or other professional advice or services. Nothing in this presentation is or should be construed as an offer, invitation or solicitation to engage in any investment activity or transaction, including an offer to sell or a solicitation of an offer to buy any securities which should only be made pursuant to definitive offering documents and subscription agreements, including without limitation, any investment fund or investment product referenced herein.  Any reproduction or distribution of this presentation in whole or in part, or the disclosure of any of its contents, without the prior consent of ICONIQ, is strictly unauthorized. This presentation may contain forward-looking statements based on current plans, estimates and projections. The recipient of this presentation ("you") are cautioned that a number of important factors could cause actual results or outcomes to differ materially from those expressed in, or implied by, the forward-looking statements. The numbers, figures and case studies included in this presentation have been included for purposes of illustration only, and no assurance can be given that the actual results of ICONIQ or any of its partners and affiliates will correspond with the results contemplated in the presentation. No information is contained herein with respect to conflicts of interest, which may be significant. The portfolio companies and other parties mentioned herein may reflect a selective list of the prior investments made by ICONIQ. Certain of the economic and market information contained herein may have been obtained from published sources and/or prepared by other parties. While such sources are believed to be reliable, none of ICONIQ or any of its affiliates and partners, employees and representatives assume any responsibility for the accuracy of such information. All of the information in the presentation is presented as of the date made available to you (except as otherwise specified), and is subject to change without notice, and may not be current or may have changed (possibly materially) between the date made available to you and the date actually received or reviewed by you. ICONIQ assumes no obligation to update or otherwise revise any information, projections, forecasts or estimates contained in the presentation, including any revisions to reflect changes in economic or market conditions or other circumstances arising after the date the items were made available to you or to reflect the occurrence of unanticipated events. For avoidance of doubt, ICONIQ is not acting as an adviser or fiduciary in any respect in connection with providing this presentation and no relationship shall arise between you and ICONIQ as a result of this presentation being made available to you. ICONIQ is a diversified financial services firm and has direct client relationships with persons that may become limited partners of ICONIQ funds. Notwithstanding that a person may be referred to herein as a "client" of the firm, no limited partner of any fund will, in its capacity as such, be a client of ICONIQ. There can be no assurance that the investments made by any ICONIQ fund will be profitable or will equal the performance of prior investments made by persons described in this presentation. Any information in this presentation is directed at, and intended for, only persons who are experienced institutional or professional investors (“professional investors”) as defined by applicable law and regulation. Any person that is not a professional investor is not an intended recipient of this presentation and the matters discussed herein.

For avoidance of doubt, ICONIQ is not acting as an adviser or fiduciary in any respect in connection with providing this presentation and no relationship shall arise between you and ICONIQ as a result of this presentation being made available to you.

ICONIQ is a diversified financial services firm and has direct client relationships with persons that may become limited partners of ICONIQ funds. Notwithstanding that a person may be referred to herein as a "client" of the firm, no limited partner of any fund will, in its capacity as such, be a client of ICONIQ. There can be no assurance that the investments made by any ICONIQ fund will be profitable or will equal the performance of prior investments made by persons described in this presentation.

Any information in this presentation is directed at, and intended for, only persons who are experienced institutional or professional investors (“professional investors”) as defined by applicable law and regulation. Any person that is not a professional investor is not an intended recipient of this presentation and the matters discussed herein.

Copyright © 2024 ICONIQ Capital, LLC. All rights reserved.

The ICONIQ Growth website does not present information relating to ICONIQ Capital, its investment funds, or its advisory business and should not be consulted for any advisory purposes. The ICONIQ Growth content is intended for the use of company founders and executives.