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7.1. Evaluation Frameworks and Quality Assessment

💡 First Principle: Every evaluation framework must answer three separate questions: Is the output factually correct? Is it faithful to the provided context? Is it useful to the user? These three questions require different evaluation techniques — factual correctness requires ground truth comparison, faithfulness requires context grounding checks, and usefulness often requires human evaluation or LLM-as-judge.

No single metric captures all three. Applications that optimize for one metric while ignoring the others systematically fail in the dimension they don't measure — a model fine-tuned to maximize ROUGE scores on a summary task will learn to output the same sentences that appear in reference summaries, rather than to produce maximally useful paraphrases.

⚠️ Common Misconception: A high accuracy score on a golden question-answer dataset means the system will perform well in production. Production inputs are drawn from a completely different distribution than golden datasets — users ask questions the golden dataset doesn't cover, phrase things unexpectedly, and pursue goals that test cases didn't anticipate. Evaluation must include adversarial testing, edge cases, and real production query sampling.

What You're TestingMetricHow It's MeasuredFailure Mode It Catches
Factual correctnessAccuracy vs. ground truthExact match, ROUGE (text), human evalFM inventing facts
Context faithfulnessFaithfulness (RAGAS)LLM-as-judge against retrieved contextFM ignoring or contradicting retrieved docs
Retrieval qualityContext Precision + Recall (RAGAS)Retrieved chunks vs. relevant chunksWrong chunks retrieved, relevant chunks missed
Answer usefulnessAnswer Relevancy (RAGAS)Semantic similarity to questionTechnically correct but unhelpful answers
SafetyPolicy compliance rateGuardrails block rate on adversarial inputsHarmful outputs reaching users
Alvin Varughese
Written byAlvin Varughese
Founder15 professional certifications