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From legacy systems to production AI

Cover – Site | | Cheesecake Labs
Summary
  • Cheesecake Labs is evolving into an AI services and engineering company with a new brand identity, focused on modernizing systems, making data trustworthy, and putting AI agents into production with governance and controls.
  • The author argues the real opportunity is implementation rather than model access, citing RSM data that 91% of middle-market respondents use generative AI but only 25% have it fully integrated, and BCG data that only 6% of companies qualify as AI leaders.
  • The company has joined Anthropic's Claude Partner Network and become a consulting partner of Databricks, Snowflake, and dbt, and describes six capabilities: AI Implementation, Application Modernization, Data & Analytics, Product Engineering, AI-Accelerated Delivery, and Embedded Engineering Teams.
  • Examples of results include a modernization engagement delivered in 5 months instead of the previously scoped 18 to 24 months by an agent-augmented team, SWIRL clients reporting up to 80% less time searching internal data, and Knapsack's privacy-first AI platform with SOC 2 Type I, HIPAA, and GDPR-aligned practices.

I have now spent 10 years at Cheesecake Labs. The company I joined was born in the mobile era, and I watched new platforms change what our clients could build. I have never seen a moment with more potential than this one.

What excites me the most is not (only) access to another frontier model. It’s the insight and efficiency companies gain when production AI connects their systems, data, products, and people.

That is why Cheesecake Labs is evolving. We are bringing 13 years of production engineering into a sharper proposition. Modernize the systems beneath the business, and make data trustworthy and usable. Then put AI agents into production, with the controls and engineering discipline required to make them work.

The opportunity is implementation

RSM found that 91% of middle-market respondents use generative AI. However, only 25% of users say it is fully integrated across core operations. Seventy percent said they needed outside help to get more from it. BCG found that only 6% of the companies in its analysis qualified as AI leaders. Their three-year, industry-adjusted shareholder returns were 9.3 percentage points above the sample median.

OpenAI and Anthropic have both announced hands-on deployment businesses centered on engineers working alongside clients. Their direction reinforces what we see in the mid-market and regulated organizations we have served for 13 years. Model access is only part of the work.

The difference is implementation: connecting AI to proprietary context, redesigning a real workflow, and operating it safely at scale before competitors do.

A natural next chapter for Cheesecake Labs

We have shipped more than 300 digital products, modernized aging platforms, connected fragmented systems, built data foundations, designed regulated products, and embedded senior engineers inside client teams.

Now we’ve joined Anthropic’s Claude Partner Network and are a consulting partner of Databricks, Snowflake, and dbt.

AI gives that experience more leverage. It can accelerate code, tests, documentation, and data pipelines. Agentic delivery can help teams map legacy systems, document dependencies, build test coverage, and migrate through smaller, validated releases.

In one current modernization engagement, we previously would have scoped the work at 18 to 24 months. Instead, it is being delivered across only 5 months by a smaller, agent-augmented team, through validated production releases.

Faster engineering alone does not change a business. Results come from connecting what gets built to live systems, governed data, real workflows, and the people responsible for them. Production AI needs evaluations before launch, guardrails and human escalation in production, and continuous monitoring after release.

The context that makes AI useful lives in the records and rules behind actual decisions: support history, eligibility criteria, product configurations, inventory, pricing, CRM and billing relationships, and the outcomes of past actions.

As frontier models become more accessible, the advantage shifts to companies that keep this context current, governed, and available at the point of decision.

What we help clients do now

Four capabilities define what we build:

AI Implementation: Agentic workflows in production, grounded in trusted data, with governance and controls built in from the start.

Application Modernization: AI-assisted discovery, documentation, testing, and phased migration that modernize aging systems while keeping core operations running.

Data & Analytics: Modern data platforms, reliable pipelines, semantic models, lineage, quality controls, and permissions that analytics and AI can trust.

Product Engineering: Strategy, design, and engineering across mobile, web, IoT, blockchain, cloud, and LLM and RAG integrations, from first release through scale.

Two capabilities define how we deliver. AI-Accelerated Delivery applies agents across discovery, build, review, testing, and release while keeping production standards intact. Embedded Engineering Teams bring senior engineers into the client environment, nearshore, on site, or US-based. They work alongside internal teams or own delivery end to end.

Together, they guide our clients through every stage: assessing what matters, modernizing systems and data, implementing AI, and scaling what proves its value.

What production AI looks like in practice

In regulated environments, a practical sequence starts with visibility and governance, then builds the data and AI architecture. Only then do we introduce narrowly scoped agents, with defined permissions, evaluations, human approval, and audit trails.

Forward-deployed engineers make this practical. They work inside the client’s systems, tools, and workflows from assessment through launch. Frontier AI labs now describe this model as forward-deployed engineering. We have worked inside client teams this way for 13 years.

Our public work shows the same foundations in production. For example, with SWIRL, we helped connect enterprise AI search to more than 100 platforms. SWIRL clients report up to 80% less time spent searching internal data. With Knapsack, we helped build a privacy-first AI workflow platform. The platform carries SOC 2 Type I certification, HIPAA compliance, and GDPR-aligned practices.

A new brand for the company we have become

Our new visual and verbal identity makes this evolution visible. Cheesecake Labs is now an AI services and engineering company for clients that need modern systems, trusted data, products built to scale, and senior engineers who can take AI into production.

This is not a departure from our product engineering history. It is the next expression of it.

After 10 years here, that is what excites me most: helping established companies modernize faster, make their business context usable, and put AI to work in the workflows that matter.

Whether you are looking to modernize a legacy application or take AI agents into production on a trusted data foundation, let’s talk.

FAQ

Why is Cheesecake Labs evolving its proposition now?

The post says the company was born in the mobile era and that the author has never seen a moment with more potential than this one. What excites the author most is the insight and efficiency companies gain when production AI connects their systems, data, products, and people. The company is bringing 13 years of production engineering into a sharper proposition: modernize the systems beneath the business, make data trustworthy and usable, then put AI agents into production with the controls and engineering discipline required to make them work.

What does the post say about the gap between AI adoption and integration?

RSM found that 91% of middle-market respondents use generative AI, but only 25% of users say it is fully integrated across core operations, and 70% said they needed outside help to get more from it. BCG found that only 6% of the companies in its analysis qualified as AI leaders, with three-year, industry-adjusted shareholder returns 9.3 percentage points above the sample median. The post concludes that model access is only part of the work and that the difference is implementation.

What capabilities does Cheesecake Labs offer?

Four capabilities define what is built: AI Implementation (agentic workflows in production, grounded in trusted data, with governance and controls), Application Modernization (AI-assisted discovery, documentation, testing, and phased migration), Data & Analytics (modern data platforms, reliable pipelines, semantic models, lineage, quality controls, and permissions), and Product Engineering (strategy, design, and engineering across mobile, web, IoT, blockchain, cloud, and LLM and RAG integrations). Two capabilities define how work is delivered: AI-Accelerated Delivery and Embedded Engineering Teams, with senior engineers nearshore, on site, or US-based.

What does production AI look like in practice, especially in regulated environments?

A practical sequence starts with visibility and governance, then builds the data and AI architecture, and only then introduces narrowly scoped agents with defined permissions, evaluations, human approval, and audit trails. Production AI needs evaluations before launch, guardrails and human escalation in production, and continuous monitoring after release. Forward-deployed engineers work inside the client's systems, tools, and workflows from assessment through launch.

What examples and results does the post share?

In one current modernization engagement, work that previously would have been scoped at 18 to 24 months is being delivered across only 5 months by a smaller, agent-augmented team through validated production releases. With SWIRL, the company helped connect enterprise AI search to more than 100 platforms, and SWIRL clients report up to 80% less time spent searching internal data. With Knapsack, it helped build a privacy-first AI workflow platform that carries SOC 2 Type I certification, HIPAA compliance, and GDPR-aligned practices. The company has shipped more than 300 digital products and has joined Anthropic's Claude Partner Network and is a consulting partner of Databricks, Snowflake, and dbt.