Own Your Evals Before You Own Your AI

Own Your Evals Before You Own Your AI

Introduction

The race to “own your AI” is on. Enterprises are increasingly drawn to creating proprietary AI models, hosting them on private infrastructure, and tailoring them to organizational needs. While intelligence independence is appealing and often strategically sound, there is a foundational step that must come first: owning your evaluations. Evaluations form the backbone of effective AI adoption, enabling enterprises to assess, validate, and refine models to meet their goals and priorities.

Without robust evaluations, even the most promising AI initiatives risk failure. Misaligned models can lead to wasted resources and suboptimal outcomes, while inaccurate outputs undermine trust and decision-making, potentially causing harm or damaging reputation. These risks underscore the critical need for disciplined evaluation processes to ensure AI models deliver consistent value while upholding ethical and operational standards.

In this article, I make a point that owning the evaluation process (or “evals”) is the critical precursor to building, buying, and managing AI systems. Robust evaluation frameworks are the cornerstone of effective AI adoption, enabling organizations to systematically assess and improve model performance, mitigate risks, and ensure alignment with their unique goals.

Why Owning Evaluations is Indispensable

The complexity of modern AI models requires more than just intuition or ad hoc testing to determine their effectiveness. Evaluations are the lens through which enterprises judge the goodness of a model—whether it’s proprietary, open-source, or third-party. Without this capability, organizations are navigating the AI landscape blindfolded.

Consider the breadth of scenarios where evaluation plays a pivotal role:

  • Selecting Models: How do you choose between proprietary and open-source options? What benchmarks determine fitness for purpose?
  • Model Migrations: When switching from one vendor or platform to another, how do you ensure no degradation in performance?
  • Fine-Tuning: How do you measure the impact of domain-specific customization on model accuracy and reliability?
  • Production Monitoring: Once deployed, how do you continuously assess whether the model is meeting your evolving needs?

Owning the evaluation process enables enterprises to confidently answer these questions and adapt as the AI landscape evolves.

Planning for Evaluation

Before diving into specific evaluation methodologies, enterprises need to first establish a robust pipeline for evaluation. This pipeline ensures systematic, repeatable, and scalable assessments of AI models. For example, systematic assessments can involve structured performance metrics across various domains, such as accuracy and latency. Repeatable processes may include predefined evaluation workflows using automated tools. Scalability is achieved by leveraging cloud-based testing environments that can handle large-scale test cases, ensuring validation for real-world deployment. Here are key steps to approach and plan for evaluation:

  • Define Clear Objectives: Start by identifying the business goals and scenarios the AI model must address. This clarity informs the metrics and benchmarks for evaluation.
  • Design Evaluation Scenarios: Create representative use cases and scenarios that mimic real-world applications and usage of the model. This step ensures the evaluation is contextually relevant.
  • Incorporate Automation: Leverage tools and frameworks to automate aspects of the evaluation process, such as generating test cases, scoring outputs, and identifying edge cases.
  • Iterative Refinement: Establish feedback loops where evaluation results are used to improve the model, prompt, or other parameters, as well as refine the testing process itself.
  • Responsible AI and Red Teaming: Include rigorous testing methods like red teaming to identify vulnerabilities and ensure robustness against adversarial inputs. Responsible AI practices should also be embedded to address issues of fairness, transparency, and ethical alignment, ensuring that models adhere to organizational values and regulatory requirements.
  • Ensure Governance: Define processes for documenting, auditing, and validating evaluations to align with regulatory and ethical standards.

Evaluation Methodologies and Techniques for Generative AI Models

Evaluating generative AI models presents unique challenges due to their dynamic and context-dependent outputs. Unlike traditional AI systems with fixed inputs and outputs, generative models require evaluation across multiple dimensions to capture their quality and utility effectively. Here are key methodologies and techniques tailored for generative AI:

  • Prompt-Based Testing: Systematically test model responses using a diverse set of prompts representing real-world scenarios. This helps assess the model’s consistency, factual accuracy, and adherence to task requirements.
  • Human-in-the-Loop Evaluation: Incorporate human reviewers to provide qualitative feedback on model outputs, especially for tasks involving creativity, tone, or cultural relevance. Human insights are critical for subjective metrics that are difficult to automate.
  • Automatic Metrics: Incorporate methodologies like the "LLM-as-a-Judge" paradigm, where large language models are used as evaluators to score and rank outputs. This approach enhances the evaluation process by addressing subjective metrics such as relevance, tone, or alignment with task goals. Combining automated metrics with LLM-based judgments and task-specific measures provides a more comprehensive understanding of a model's performance.
  • Stress Testing: Challenge models with adversarial inputs, ambiguous queries, or edge cases to identify vulnerabilities and areas for improvement.
  • Comparative Analysis: Evaluate multiple models side by side on identical tasks to identify the best-performing option for specific use cases. Tools like OpenAI’s Evals framework can facilitate this process.
  • Scenario-Based Simulations: Create controlled simulations mimicking deployment environments to test how models perform under realistic operational conditions, including scalability and latency.

The Strategic Payoff of Owning Evals

By mastering evaluation, enterprises gain several strategic advantages:

  • Informed Decision-Making: Confidently choose whether to build, buy, or fine-tune models based on clear, data-driven insights.
  • Risk Mitigation: Identify and address issues such as bias, inaccuracies, or ethical concerns before they escalate.
  • Operational Excellence: Streamline model migrations, monitor production systems effectively, and adapt to new AI innovations with ease.
  • Regulatory Compliance: Maintain detailed records of evaluation processes to demonstrate due diligence and accountability.

Conclusion: Evals Are the First Step to AI Ownership

As AI continues to evolve, the ability to evaluate models effectively will become even more critical. Regulatory scrutiny is intensifying, and enterprises must be prepared to justify their AI decisions with rigorous evidence. By owning their evals, organizations lay the foundation for long-term success—ensuring they can navigate the complexities of AI with confidence.

Moreover, adopting advanced methodologies, such as the "LLM-as-a-Judge", underscores the importance of combining traditional evaluation metrics with scalable and nuanced approaches. This allows enterprises to address both objective and subjective criteria, ensuring models are not only performant but also aligned with ethical and operational standards. Before pouring resources into developing proprietary AI models or scaling infrastructure, enterprises must ask themselves: “Do we have the capability to consistently and rigorously evaluate AI?” If the answer is no, it’s time to build that muscle. Owning your evals is not just a precursor to owning your AI; it’s the cornerstone of responsible and effective AI adoption. Enterprises that invest in robust evaluation frameworks today will be the ones leading the AI-driven economy of tomorrow.


REFERENCES:

Stephan O. Krause, PhD

Executive Director for Cell Therapies at BMS; PDA Board of Directors; Chair of PDA ATMP Advisory Board, TR56 ATMP Annex and ANS-007

1w

Very informative and agree very much.

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Doug Safreno

Co-founder, CEO at Gentrace

1w

Great article. While there's a lot of good starting points for specific types of tasks, we think most companies end up needing to own their evals and tailor them tightly to their task.

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Nikolai Makaranka

Director, Manufacturing Analytics at Bristol Myers Squibb

1w

Great article. Evals along with data are crucial expertise to keep in-house. People are often too obsessed with models when they should be focused first of all on evaluating them properly.

Kiran Shetty

AI & Data Transformation Executive | Driving Business Growth through Digital Innovation & Enterprise Agility | Data Governance Advocate | Building Future AI Organisations | IIMC Alumni

2w

Enterprises must secure robust evaluation frameworks to assess, validate, and refine AI models for alignment with business goals and ethics.

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