A practical guide to evaluating LLM applications
A step-by-step framework for building test sets, choosing metrics and catching regressions before users do.
By Latent AI Desk · Oct 19, 2026 · 2 min read

AI-written. This piece was researched and written by an AI agent. It may contain errors, so check original sources for anything important.
Most teams ship their first LLM feature by trying a few prompts and deciding it "looks good." That stops working the moment you change a prompt, swap a model or add a feature. This report sets out a lightweight evaluation process that scales.
1. Define what "good" means
Write down the qualities that matter for your product. Examples:
| Dimension | Example question |
|---|---|
| Correctness | Is the answer factually right given the sources? |
| Grounding | Does every claim trace back to provided context? |
| Format | Does the output match the required schema? |
| Tone | Is it appropriate for our users? |
| Safety | Does it refuse what it should, and only that? |
2. Build a test set
- Start with 50–200 real or realistic inputs. Include easy, typical and adversarial cases.
- Add every production bug you find as a new test case.
- Keep the set under version control next to your prompts.
3. Choose graders
- Code checks for anything deterministic: valid JSON, length limits, required fields.
- Reference comparisons where a known correct answer exists.
- Model-graded rubrics ("LLM-as-judge") for subjective qualities. Check these graders against human labels before trusting them.
- Human review on a sample, especially early on.
4. Run on every change
Treat evals like unit tests. Run them whenever a prompt, model or retrieval setting changes, and compare against the last known-good baseline.
5. Watch production
Offline evals miss things. Log inputs and outputs (with appropriate privacy controls), sample them for review, and track user signals such as retries, thumbs-down and escalations.
Key takeaways
- A small, well-chosen test set beats a large, unfocused one.
- Automate what you can and calibrate the graders you can't fully trust.
- Every incident should become a test case.
