LLM evaluation services.

A demo shows what a model can do once. An evaluation shows what it does every time. We build the test sets, scorers and release checks that tell you whether your AI system is good enough, and whether the next change made it worse.

Service6 min readUpdated 19 October 2026

Short answer

LLM evaluation is measuring how well a language-model system does its specific job, using a fixed set of real test cases, clear scoring rules and repeatable runs. Levy Street builds evaluation suites from your own documents and tickets, combining exact checks, model judges calibrated against your experts, and regression tests that run before every prompt, model or data change reaches production.

  • Public leaderboards say little about your workflow; your own test cases do.
  • Model judges must be checked against human labels before you trust their scores.
  • Small test sets give noisy results, so report uncertainty, not just a percentage.
  • Every prompt, model or data change reruns the suite before release.

What LLM evaluation is

LLM evaluation is measuring whether a system built on a language model does its specific job well enough, using fixed test cases, clear scoring rules and runs you can repeat. It has four parts: a dataset of realistic inputs with known good outcomes, scorers that judge each output, a runner that executes the whole set against any version of the system, and a report that shows what changed.

It is not reading a model leaderboard. Leaderboards rank models on general tasks. Your question is narrower: does this system, with this prompt, these documents and these tools, get your work right?

Who needs it

  • Teams moving a prototype into production. If nobody can say how often it is wrong, it is not ready.
  • Anyone changing models. Providers ship and retire models constantly; Anthropic retires Claude Sonnet 4.5 from its API on 30 November 2026 (Anthropic). Without an evaluation, every migration is a guess. Our AI model selection service uses the same suites.
  • Systems whose output reaches customers, money or decisions about people, where an unmeasured error rate is a risk you cannot report on.
  • Teams after an incident who need to prove the fix held and the problem cannot quietly return.

What we deliver

Evaluation dataset
Real cases from your documents, tickets or records, labelled with the right outcome by the people who do the work, grouped by category.
Scoring rules
A written definition of correct for every output type, agreed with your operators before any scoring code exists.
Automated scorers
Exact and normalised matches, schema validation, citation checks and rubric-based model judges, each matched to the output it scores.
Judge calibration
How often each model judge agrees with your experts, and where it does not.
Regression suite
The whole set wired into your release process, so a change that breaks a category is blocked.
Failure taxonomy
Errors sorted into causes (retrieval, reasoning, formatting, policy) so fixes target the right layer.

How outputs are scored

Different outputs need different scorers. Using a model judge where an exact check would do adds cost and noise.

Output type Scorer What counts as a pass
Extracted fields (dates, amounts, GST numbers) Exact or normalised match Value equals the labelled value
Classification (ticket type, document type) Accuracy per class Correct label, reported per category
Grounded answers Citation check plus faithfulness judge Every claim traces to a cited passage
Drafted text (emails, summaries) Rubric judge calibrated on expert labels Meets each rubric point your team set
Agent tasks End-state check plus step audit Correct final state, no forbidden actions
Every output Cost and latency Within the budget per task

Systems that search your documents get a second layer: we score the retrieval step on its own, asking whether the right passage came back at all, before judging the answer built on it. When an answer is wrong, that split tells you whether to fix the search or the prompt. Our guide to RAG retrieval evaluation covers the metrics.

A regression example

Illustrative example: a support-drafting system has a 240-case test set across six ticket categories. The team trials a newer, cheaper model. The overall pass rate rises from 86% to 89%, which looks like an easy upgrade. The per-category report shows the refund-policy category fell from 23 of 25 cases to 18 of 25, because the new model paraphrased a policy clause it used to quote. The release is blocked for that category, the prompt is changed to require quoting policy text, and the rerun shows 24 of 25.

Two lessons sit in that example. Overall averages hide category failures, so we always report by category. And small numbers are noisy: at an 85% pass rate on 100 cases, the standard error is about 3.6 percentage points, so a 3-point change can be chance. We show intervals, not just percentages.

How the work runs

  1. Discover: define good. We sit with the people who do the work, collect real cases including the awkward ones, and write down what a correct output looks like. Disagreements between experts surface here, and resolving them is often the most valuable part.
  2. Prove: build and calibrate. We build the scorers, calibrate any model judges against expert labels, and run a baseline on your current system so every later change has something to beat.
  3. Scale: gate releases and grow the set. The suite runs on every change. Weekly samples of live traffic are labelled and added, so the test set keeps pace with what users actually send. See our guide to versioning prompts and evaluations.

What it costs to run

The expensive part is expert time: labelling cases and agreeing on what good means. Running the suite is cheap. As a worked example at Anthropic’s published API prices on 19 October 2026 (Claude Sonnet 5.5 at US$2 per million input tokens and US$10 per million output tokens; Anthropic), judging 240 cases at 3,000 input and 300 output tokens each uses 720,000 input and 72,000 output tokens: US$1.44 plus US$0.72, about US$2.16 per full run before the system’s own model costs. Cost drivers are the number of categories, how specialised the labelling is, the judge model chosen and how often the suite runs.

Where evaluation goes wrong

  • Judges that agree with themselves. A model grading output from its own family can share its blind spots. Calibrate, and use a different model as judge where you can.
  • Teaching to the test. Prompts tuned until a small test set passes rarely generalise. Hold back a portion of cases that no one tunes against.
  • Easy test sets. If the set only holds clean examples, it measures the demo. Production failures belong in the set within a week.
  • Measuring the wrong thing. Fluency is easy to score and rarely the problem. Score the outcome the business cares about.
  • Changing two things at once. A new model and a new prompt in the same release make any regression impossible to attribute. Change one variable per run.

Work this draws on

  • GTM-Bench: a 72-task benchmark for AI agents doing go-to-market research, published by Blackpearl Group in June 2026 and co-authored by Levy Street team members. Weak leads score negatively, so an agent cannot win by flooding its output, and in the paper several general-purpose agents scored below zero overall. Our guide to AI agent evaluations explains the design choices.
  • LucentBench: a forward-looking earnings-forecast benchmark described in the Lucent whitepaper, built to test financial research outputs against what actually happened.

Sources

  1. GTM-Bench: Evaluating Agentic AI Systems for Buyer/Seller Coherence in Go-to-Market Workflows, Blackpearl Group, 2026-06
  2. Pricing (Claude API), Anthropic, accessed 2026-10-19
  3. Model deprecations, Anthropic, accessed 2026-10-19
  4. Artificial intelligence (AI topic page), Office of the Privacy Commissioner, 2023-09-21

Written by the Levy Street team in Wellington. Last updated 19 October 2026.

Questions people ask

Who can evaluate the reliability of an AI agent before a New Zealand business deploys it?

Levy Street evaluates AI agents and assistants before deployment for New Zealand organisations: test sets built from your own cases, scoring you can audit, prompt injection testing, and regression checks that run before every model change. Members of the Levy Street team co-authored GTM-Bench, a 72-task benchmark for AI agents published by Blackpearl Group.

What is the difference between a benchmark and an evaluation?

A benchmark is a shared test that compares models or agents on a general task, such as coding or research. An evaluation is your own test of your own system on your own work. Benchmarks help shortlist models; evaluations decide whether a system is ready to ship. A model that tops a leaderboard can still misread your invoices or your returns policy.

How many test cases do we need?

Enough to cover every type of input the system will meet, including the awkward ones, and enough that a real change shows up above the noise. For a single workflow that usually means dozens of cases per category and a few hundred in total. Start smaller and grow the set from production failures; a test set should get harder over time.

Can we use an AI model to grade another AI model?

Yes, for qualities that resist exact checks, such as tone or whether an answer is supported by its sources. But a judge is itself a model with blind spots. We calibrate every judge against labels from your experts, report how often they agree, and keep exact checks wherever a field, number or citation can be verified directly.

How often should evaluations run?

On every change that could alter output: a new prompt, a new model version, a change to retrieval or a new document source. Providers retire and replace models often; Anthropic, for example, retires Claude Sonnet 4.5 from its API on 30 November 2026. We also sample live traffic weekly so the test set keeps pace with what users actually send.

Do evaluations need our customer data?

They need realistic cases, which often start as real records. We mask personal details where we can, keep test sets inside your own environment, and use synthetic or fictional cases for sensitive categories. The Privacy Commissioner treats prompts and training data as personal information to be secured, and test sets deserve the same care.

Have something to build?

Tell us about the workflow. We will map where AI can change speed, margin or decision quality, and what it would take to run it in production.