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Building a Production-Style AI Backend

  • 4 hours ago
  • 5 min read


Course: AI Backend Engineering with FastAPI 

Assignment Type: Capstone Implementation + Architecture Report 

Difficulty: Medium → Advanced 

Estimated Effort: 10–15 hours 

Submission Platform: LMS (Moodle / Canvas / Blackboard)





Assignment Overview


In this assignment, you will design and implement a production-style AI backend API using the concepts introduced throughout this course.


You will build a modular FastAPI system that integrates:


  • LLM inference

  • Retrieval-Augmented Generation (RAG)

  • Background processing

  • Streaming responses

  • Logging and monitoring

  • Clean architecture design


The goal is to simulate how real-world AI systems are engineered, rather than building a simple demo endpoint.


Your system should demonstrate scalable backend design, modularity, and observability.





Learning Objectives


By completing this assignment, you should be able to:


  1. Design a clean API architecture using FastAPI.

  2. Implement structured request validation using Pydantic schemas.

  3. Build service layers to separate business logic from routing.

  4. Implement async endpoints for scalable AI APIs.

  5. Integrate a Retrieval-Augmented Generation (RAG) pipeline.

  6. Implement streaming responses for real-time LLM output.

  7. Add background task processing for long-running operations.

  8. Implement logging and middleware for observability.

  9. Demonstrate production-ready API practices.





Assignment Scenario


You are tasked with building an API backend for a hypothetical product:


AI Knowledge Assistant

The assistant should be able to:


  • Accept user queries

  • Retrieve relevant information from a knowledge base

  • Generate responses using an LLM

  • Optionally stream responses

  • Perform background processing tasks

  • Log requests and responses for monitoring





System Requirements

Your project must implement the following core features.




Required API Endpoints


AI Assistant Endpoint


Endpoint

POST /ai-assistant



Expected Capabilities

The endpoint must:


  • Accept structured messages

  • Optionally retrieve context (RAG)

  • Call an LLM service

  • Support streaming responses

  • Use background tasks for secondary processing



Example Request



{

 "messages": [

   {"role": "user", "content": "Explain FastAPI"}

 ],

 "temperature": 0.7,

 "stream": false,

 "use_rag": true,

 "use_ml": false

}



Expected Behavior

The system should:


  1. Validate input using Pydantic schemas

  2. Extract the latest user message

  3. Perform optional retrieval

  4. Construct a prompt

  5. Call an LLM service

  6. Return generated response





Required Architecture


Your project must follow a layered architecture.


Required folder structure:



app/

   main.py

   routers/

   services/

   schemas/

   core/




Routers

Responsible for:


  • Handling HTTP requests

  • Calling service layer

  • Returning responses


Example: app/routers/assistant.py




Services

Services must contain:


  • LLM interaction logic

  • RAG retrieval

  • ML model calls

  • Background jobs



Example:



app/services/llm.py

app/services/vector_store.py

app/services/ml_model.py

app/services/background_jobs.py




Schemas


Use Pydantic models to validate input.


Example schema:


  • AssistantRequest

  • Message



Schemas must include:


  • message structure

  • temperature parameter

  • feature toggles





RAG Pipeline Requirement


You must implement a simple retrieval mechanism.


The system should:


  1. Accept user query

  2. Retrieve relevant documents

  3. Inject retrieved context into the prompt



This may be implemented using:


  • A mock vector store

  • Static knowledge documents

  • Simulated retrieval logic





Streaming Responses

Your system must support optional streaming responses.


If:

stream = true


Then:


  • The API should return a StreamingResponse

  • Tokens/words should be streamed gradually





Background Processing

You must implement at least one background task.


Example tasks:


  • Logging user queries

  • Saving conversation history

  • Running analytics on user input



Use:

BackgroundTasks





Logging and Middleware

Your API must implement logging.


Logs should capture:


  • Request method

  • Endpoint accessed

  • Request duration

  • Errors if any



Middleware should:


  • generate request IDs

  • measure latency





Error Handling

You must implement custom error handling for:


  • Validation errors

  • HTTP exceptions


Responses should be structured and user-friendly.





Async Programming


Your LLM service must use: async def to simulate or implement asynchronous model calls.





Documentation

Your API must expose documentation using:


  • Swagger UI

  • Accessible via:

  • /docs





Code Quality Expectations

Your code must demonstrate:


  • clean modular structure

  • meaningful variable names

  • clear separation of concerns

  • comments where necessary


Avoid placing all logic inside a single file.





Optional Bonus Features (Extra Credit)

Students may earn bonus marks by implementing additional features such as:

  • Rate limiting

  • API key authentication

  • Integration with a real LLM API

  • Real vector database (FAISS, Pinecone, Chroma)

  • Request caching

  • Celery-based task queue (optional)





Deliverables

You must submit the following:


Source Code


  • Upload a ZIP archive containing the full project.

  • Folder structure must be preserved.




README File


Include a README.md with:


  • project description

  • installation steps

  • how to run the server

  • API endpoint explanation

  • example request




Architecture Explanation (1–2 pages)


Submit a short document explaining:


  • system architecture

  • design decisions

  • how services interact

  • how scalability could be improved



Accepted formats:


  • PDF

  • DOCX





Demonstration Evidence


Students must include screenshots of:


  1. API running

  2. Swagger documentation

  3. Successful API request

  4. Streaming response example

  5. Background task logs





Submission Instructions (LMS)

Submit the following files via the LMS platform.


Upload:


  • project.zip

  • README.md

  • architecture.pdf

  • screenshots folder

  • File naming convention:

  • AI_Backend_Assignment_<StudentID>.zip





Academic Integrity


Students must:


  • Write their own code

  • Avoid copying from peers

  • Cite external libraries used


Use of AI tools is allowed only as a learning aid, not as a replacement for understanding.

All submissions may be checked for similarity.





Evaluation Rubric


Criteria

Marks

Architecture & Structure

20

API Functionality

20

RAG Integration

15

Streaming Implementation

10

Background Tasks

10

Logging & Observability

10

Code Quality

10

Documentation

5

Total: 100 Marks





Deadline

Submission Deadline: [Instructor to specify]

Late submissions may incur penalties according to course policy.





Final Advice for Students

Do not rush to code immediately.


First:


  1. Design your architecture

  2. Create folder structure

  3. Implement services step by step


Focus on clarity and modular design rather than complexity.





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