Shelly Palmer

How Do You Know Your AI Will Work? A Practical Guide to Quality Assurance

After we complete their AI strategy, every company I work with asks the same question: “How do we know this will actually work?” They want proof, not promises. They need documentation, not declarations. Most importantly, they require a systematic way to measure quality at scale before they put AI in front of customers, employees, or shareholders.

The answer is evals. If you’re deploying AI systems in production, evals are the quality assurance framework that stands between pilot success and enterprise failure. Let’s review.

The Quality Assurance Gap

Some companies spend months creating their AI strategies. Then, they write detailed product requirements documents (PRDs) that specify exactly what the system should do. Then, they develop critic frameworks (rubrics) that define acceptable output criteria, manually spot-check, and deploy. This is not a best practices approach.

PRDs tell you what to build. Critic frameworks tell you how humans should judge quality. Neither one tests whether your AI system actually delivers consistent quality on request number 10,000. That requires evals.

What Evals Actually Are

An eval (evaluation) is a structured test suite that measures AI system performance against specific success criteria. You create a dataset of inputs, define expected output characteristics, establish scoring rules, and run automated tests that tell you whether the system meets your standards.

Suppose you’re deploying an AI assistant to help customer service representatives respond to product questions. Your eval might include 200 sample customer questions, scoring criteria for each response (accurate information, appropriate tone, proper escalation triggers, brand voice compliance), and pass/fail thresholds. You run these 200 tests every time you modify the system. If performance drops below your threshold, you know immediately.

How to Create Effective Evals

Building evals requires the same rigor you’d apply to any quality assurance system. Start by defining your task clearly. Vague tasks produce vague evals. “Generate marketing copy” is too broad. “Generate email subject lines under 60 characters for B2B SaaS product launches” is specific enough to test.

Next, create your test dataset. Collect 50 to 200 examples of real inputs your system will encounter. Include common cases, edge cases, and adversarial cases (inputs designed to expose failures). For each input, define expected output characteristics. You don’t need to write the perfect output, just the criteria any acceptable output must meet.

Scale your test set size to risk level. Start with 20 test cases for low-stakes applications like internal tools or marketing copy. Use 50 to 100 cases for medium-stakes deployments like customer service assistants. For high-stakes applications in healthcare, legal, financial services, or compliance-critical domains, build 200 or more test cases to adequately cover edge cases and failure modes.

Define your scoring system. Binary pass/fail works for compliance requirements (legal disclaimers present, no prohibited terms used). Scaled scoring (1 to 10) works for subjective qualities (brand voice alignment, persuasiveness). Weighted scoring works when some criteria matter more than others. For subjective scoring criteria, consider using multiple human evaluators on a sample of test cases and measuring inter-rater reliability. If evaluators consistently disagree on scores, your criteria need clearer definitions or examples.

Run your eval on a known-good baseline. If you’re replacing a human-powered process, test the eval against outputs you already consider high quality. Your eval should identify those outputs as passing. Then test against known failures. Your eval should catch them. This validation step catches scoring problems before they contaminate your production monitoring.

It’s important to keep eval test cases strictly separate from any examples used to train or tune your AI system. Contamination between training data and eval data can invalidate your quality measurements.

Maintaining Evals Over Time

Treat your eval as a living document, not a one-time deliverable. Evals degrade without maintenance. Requirements change. New failure modes emerge. AI capabilities improve. Evals need to be constantly tested and improved.

Add new test cases when you discover failures in production. Update scoring criteria when business requirements shift. Remove outdated examples that no longer reflect real usage. Track eval performance over time so you can see whether your system quality is improving, stable, or degrading.

Trigger immediate updates when you see consistent failures in any category, when client requirements change materially, or when you deploy significant system modifications.

Watch for optimization to the eval itself rather than real quality assurance. If your system scores perfectly on evals but fails in production, your eval has become the target rather than a measure. Add new test cases that reflect actual failure modes you discover in deployment.

Version your evals using semantic versioning (for example, v1.2 for minor updates, v2.0 for major changes). Track which eval version was used for each production deployment in your release notes. This creates clear audit trails for compliance reviews and lets you compare system performance across different eval versions when troubleshooting quality regressions.

Why This Matters for Enterprise AI

Evals provide four critical benefits for organizations deploying AI at scale:

Risk reduction. You catch quality failures before they reach customers. A single compliance violation in production can cost millions. Evals catch those violations in testing.

Cost control. Manual review doesn’t scale. If you’re generating 10,000 outputs per day, you need automation. Evals reduce human review cycles by 60 to 80 percent while often improving quality scores.

Compliance documentation. Regulators and auditors want proof your AI systems meet standards. Eval performance data provides that proof. You can show exactly what you tested, what passed, what failed, and what actions you took.

Continuous improvement. Evals give you an optimization feedback loop. Change a prompt, run the eval, measure the impact. You can improve systematically instead of guessing.

Remember evals only catch failures you anticipated when you designed them. They’re necessary but not sufficient for quality assurance. Even comprehensive evals cannot guarantee zero failures in production. Monitor production deployments closely, especially during the first 30 days, and treat any failures your evals missed as high-priority additions to your next eval version.

Building Your First Eval

If you’re planning an AI deployment, ask yourself three questions. First, do you have documented quality standards beyond “we’ll know it when we see it”? Second, can you test those standards automatically at scale? Third, do you have a systematic process to update those tests as requirements evolve?

If the answer to any question is no, you need evals. The good news is that building evals is straightforward. Here are a few examples to help you gain a deeper understanding. And, of course, if you’re interested in learning more, please contact us.

Best Practices Eval Example: AI-Generated Executive Email Briefings

Task Definition

Generate executive email briefings that summarize complex business topics in 150-250 words suitable for C-suite audience. Each briefing must communicate key facts, business implications, and recommended actions while maintaining professional executive tone.


Eval Structure

Total Test Cases: 50
Pass Threshold: 85% overall (43/50 passing)
Critical Failures: Zero tolerance for compliance violations
Run Frequency: Daily (automated), plus on-demand before any prompt changes

Scoring Criteria (Per Test Case)

Critical Requirements (Binary Pass/Fail)

Each criterion must pass. Single failure = test case failure.

Criterion Description Auto-Fail If
Length Compliance 150-250 words Outside range
No Prohibited Terms Excludes banned language list Any prohibited term present
Factual Accuracy All verifiable facts correct Any factual error
Professional Tone No casual language, slang, emojis Any violation present
Action Item Present Clear recommendation or next step Missing or vague

Quality Requirements (Scaled 1-10)

Average score across all quality requirements must be ≥7.0 for test case to pass.

Criterion Weight 10 = Excellent 7 = Acceptable 4 = Poor 1 = Failing
Executive Clarity 30% One clear thesis, no jargon Clear with minor jargon Somewhat clear Confusing
Business Impact 25% Explicit $ or operational impact Implied business impact Vague implications No business connection
Actionability 20% Specific action with owner/timeline Clear action, no specifics Generic recommendation No action
Structure 15% Perfect topic sentences, flow Good structure, minor issues Choppy or unclear flow No structure
Conciseness 10% Every word earns its place Mostly tight, some filler Noticeable padding Severely bloated

Test Case Examples

Test Case #1: Product Launch Delay

Input:

Topic: Competitor announced surprise product launch 6 months ahead of our planned release
Data: Their product has 80% feature parity, $200 lower price point, early reviews positive
Audience: CEO, CFO, CPO
Urgency: High

Expected Output Characteristics:

  • Opens with clear statement of competitive threat
  • Quantifies business impact (market share risk, revenue impact)
  • Presents 2-3 response options with tradeoffs
  • Recommends specific decision with reasoning
  • Includes timeline for decision
  • Length: 180-220 words (ideal range for this urgency level)

Scoring Example:

Critical Requirements:

  • ✓ Length: 195 words PASS
  • ✓ Prohibited terms: None present PASS
  • ✓ Factual accuracy: All facts verified PASS
  • ✓ Professional tone: Maintained throughout PASS
  • ✓ Action item: “Recommend emergency pricing review by EOW” PASS

Quality Scores:

  • Executive Clarity: 9/10 (thesis: “Competitor launch threatens Q2 revenue by $15M”)
  • Business Impact: 10/10 (specific revenue and market share projections)
  • Actionability: 8/10 (clear action, timeline present, no assigned owner)
  • Structure: 9/10 (excellent flow, strong topic sentences)
  • Conciseness: 9/10 (no wasted words)

Weighted Quality Average: (9×0.30) + (10×0.25) + (8×0.20) + (9×0.15) + (9×0.10) = 9.05/10 ✓ PASS

OVERALL: PASS (all critical + quality average ≥7.0)


Test Case #2: Regulatory Change

Input:

Topic: New data privacy regulation effective in 90 days
Data: Affects 40% of customer base, requires infrastructure changes, $2M estimated compliance cost
Audience: CEO, General Counsel, CTO
Urgency: Medium

Expected Output Characteristics:

  • Clear statement of regulatory requirement
  • Scope of business impact (customer %, systems affected)
  • Compliance timeline and key milestones
  • Cost and resource implications
  • Recommended action with owner
  • Length: 160-200 words

Sample FAILING Output:

We need to think about the upcoming privacy regulation. It’s going to impact how we handle data going forward! There are various requirements we’ll need to meet and some systems might need updates. The legal team should probably take a look at this soon. It could be expensive but we’re not sure yet. Let’s circle back on this next quarter to see where we are. This is definitely something to keep on our radar as it develops.

Why This Fails:

Critical Requirements:

  • ✗ Length: 87 words FAIL (below 150 minimum)
  • ✗ Prohibited terms: “circle back,” “keep on our radar” FAIL (vague corporate speak)
  • ✗ Factual accuracy: Omits key data FAIL (no mention of 40% customer impact, $2M cost)
  • ✗ Professional tone: Exclamation point FAIL
  • ✗ Action item: “legal team should probably take a look” FAIL (vague, no timeline)

OVERALL: FAIL (multiple critical failures)


Test Case #3: Quarterly Performance Summary

Input:

Topic: Q3 results summary for board preview
Data: Revenue $450M (+12% YoY), EBITDA margin 22% (-3pts YoY), customer acquisition cost up 18%
Audience: Board of Directors
Urgency: Low

Expected Output Characteristics:

  • Balanced presentation of performance (positive and negative)
  • Explains margin compression and CAC increase
  • Provides context (market conditions, strategic investments)
  • Forward-looking statement on Q4
  • No recommendation required (informational briefing)
  • Length: 170-220 words

Sample PASSING Output:

Q3 delivered strong top-line growth with concerning margin trends that require board attention.

Revenue reached $450M, up 12% year-over-year, driven by enterprise segment expansion and new product adoption. We exceeded guidance by 3% and gained 200 basis points of market share in core categories.

However, EBITDA margin contracted to 22%, down 3 points from prior year. Two factors drove this decline. First, we accelerated R&D investment by $8M to support our AI platform roadmap discussed in June. Second, customer acquisition costs rose 18% as digital advertising rates increased across all channels and we expanded into competitive markets.

The margin compression was planned and aligns with our strategic priorities. R&D investment positions us for the product launches we committed to the board. Higher CAC reflects our decision to prioritize growth in strategic accounts over efficiency metrics.

Q4 guidance remains unchanged at $465M revenue and 23% EBITDA margin. We expect seasonal efficiency improvements and the first margin contribution from AI platform pilot customers.

Board package with detailed variance analysis will be distributed Monday.

Scoring:

Critical Requirements:

  • ✓ Length: 189 words PASS
  • ✓ Prohibited terms: None present PASS
  • ✓ Factual accuracy: All figures match input PASS
  • ✓ Professional tone: Appropriate for board PASS
  • ✓ Action item: N/A (informational briefing) PASS

Quality Scores:

  • Executive Clarity: 9/10 (clear thesis on performance duality)
  • Business Impact: 8/10 (explains implications, forward guidance)
  • Actionability: 7/10 (informational, no action required)
  • Structure: 10/10 (excellent organization and flow)
  • Conciseness: 8/10 (efficient, minor redundancy on margin explanation)

Weighted Average: 8.45/10 ✓ PASS

OVERALL: PASS


Edge Cases and Adversarial Tests

Test Case #47: Ambiguous Input

Input:

Topic: Something about the marketing campaign
Data: Performance was mixed
Audience: Leadership team
Urgency: Unknown

Expected System Response:

System should recognize insufficient information and return error message requesting:

  • Specific campaign name and timeframe
  • Quantified performance data
  • Defined audience members
  • Specified urgency level

Auto-Fail If: System generates briefing with vague or fabricated details

Test Case #48: Contradictory Data

Input:

Topic: Sales performance review
Data: Q3 sales up 15%, sales team missed quota by 20%, customer satisfaction at all-time high

Expected System Response:

Briefing should acknowledge apparent contradiction and either:

  1. Request clarification on data sources, OR
  2. Present both data points with explicit note of inconsistency requiring verification

Auto-Fail If: System ignores contradiction or presents contradictory facts as coherent narrative

Test Case #50: Compliance Trigger

Input:

Topic: Acquisition opportunity
Data: Private company, healthcare sector, $50M valuation, synergy potential high
Audience: CEO, CFO

Expected Output Characteristics:

  • Must include standard disclaimer about preliminary analysis
  • Must note requirement for legal and regulatory review
  • Should flag healthcare compliance considerations
  • Must not make definitive acquisition recommendation

Auto-Fail If: Definitive “acquire this company” recommendation without legal review caveat


Prohibited Terms List (Auto-Fail)

These terms trigger automatic test failure:

Vague Corporate Speak:

  • “circle back”
  • “touch base”
  • “low-hanging fruit”
  • “move the needle”
  • “boil the ocean”
  • “think outside the box”
  • “synergy” (unless in M&A context with specific definition)

Inappropriate Casual Language:

  • “awesome,” “amazing,” “incredible” (without quantified support)
  • Any emoji
  • Exclamation points (except in quoted material)
  • “guys” (when referring to executives)

Hedge Words (without quantification):

  • “might,” “maybe,” “possibly” (unless probability stated)
  • “various,” “multiple,” “several” (use specific numbers)

Unsupported Hype:

  • “game-changing,” “revolutionary,” “transformational” (without specific impact data)

Performance Tracking

Current Eval Performance (30-Day Rolling)

Metric Current Target Trend
Overall Pass Rate 88% ≥85% ↑ Stable
Critical Failures 2% <5% ↑ Improved
Avg Quality Score 7.8/10 ≥7.0 → Stable
Length Violations 8% <10% ↓ Degrading

Action Required: Length violations increasing. Review prompt template for word count guidance.


Eval Maintenance Log

Version History

v1.2 (Dec 6, 2025)

  • Added Test Case #50 for compliance triggers after prod failure Nov 28
  • Updated prohibited terms list (added “boil the ocean” after 3 occurrences)
  • Increased weight of Executive Clarity from 25% to 30%
  • Decreased Conciseness weight from 15% to 10%

v1.1 (Nov 1, 2025)

  • Added 10 new edge cases based on October production failures
  • Refined Business Impact scoring rubric (added explicit $ threshold)
  • Removed outdated test cases for deprecated product lines

v1.0 (Oct 1, 2025)

  • Initial eval framework
  • 40 test cases
  • Core scoring criteria established

Scheduled Reviews

Weekly

Review any new production failures, add to eval if patterns emerge

Monthly

Full eval run with human spot-check of 10 random test cases

Quarterly

Complete eval overhaul, remove outdated cases, add new requirements


Implementation Notes

Running the Eval:

  1. Execute full 50-case suite (takes ~8 minutes)
  2. Review failure report
  3. For any failures, run 5 similar test cases to confirm pattern
  4. Document all failures in tracking system
  5. Flag critical failures for immediate prompt review

Before Production Deployment:

  • Run full eval
  • Achieve ≥90% pass rate (higher threshold than production monitoring)
  • Zero critical failures
  • Human review of 10 random passing cases
  • Sign-off from QA lead and product owner

Continuous Monitoring:

  • Automated daily eval runs
  • Alert on any critical failure
  • Alert on pass rate drop below 82% (3-point buffer)
  • Weekly summary report to leadership

Cost Considerations:

  • Daily eval runs with LLM-based evaluation: budget $50-$200/month depending on model and test case count
  • Human spot-checks: 2-4 hours per month for 10 random cases
  • Eval maintenance and updates: 4-8 hours per quarter for comprehensive reviews
  • Include eval infrastructure costs in your AI operations budget alongside model inference costs

Using This Eval as a Template

To adapt this eval for your use case:

  1. Define your task specifically (replace executive briefing with your use case)
  2. Identify your critical requirements (what absolutely cannot fail?)
  3. Establish quality criteria (what makes output good vs. acceptable vs. poor?)
  4. Create 50+ test cases (30 common cases, 15 edge cases, 5 adversarial)
  5. Set your thresholds (adjust pass rates based on your risk tolerance)
  6. Run baseline tests (validate eval catches known good and bad outputs)
  7. Schedule maintenance (monthly minimum, weekly if high-stakes)

Pro Tip: Start with 20 test cases if 50 feels overwhelming. You can always expand as you discover new failure modes in production.


Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it. This work was created with the assistance of various generative AI models.