In our first post in the Benchmark series, we explored why evaluating large language models (LLMs) is uniquely challenging—and how AI benchmarks offer a solution by bringing structure, repeatability, and objectivity to an otherwise subjective process. Unlike traditional machine learning, where performance can often be measured against a static ground truth, LLMs produce open-ended outputs that require more nuanced methods of evaluation. Benchmarks help fill that gap, offering standardized tasks and scoring frameworks to track model progress over time.
In this article, we’ll break down what makes a benchmark effective: the core components you need, different scoring approaches, and when to use them. We’ll also explore how benchmark strategies should evolve as your system matures—from early prototypes to production-ready applications—so you can evaluate your model in the right way, at the right time.
An AI benchmark has two key components: a standardized set of tasks, and a scoring methodology.
First, the standardized set of tasks, much like the held-out test set of traditional machine learning, ensures that metrics you get across runs of the benchmark are comparable to each other. By asking the model to answer the same questions every time, we can begin to get a deeper understanding of where our model is performing well or poorly, and how it has changed over time. This change over time is key – benchmarks are most helpful when we can compare versions of models against each other to look for improvements and regressions.
Scoring Method | How It Works | Example | Benefits | Limitations |
Reference-based (Statistical) | Compares model output to reference data using rules/algorithms | BLEU, MMLU | Deterministic, reproducible, fast, scalable | Needs reference data, lacks semantic understanding |
Code-based (Statistical) | Validates output format or logic with code, patterns, or tests | HumanEval, JSON format checks | Precise, scalable, interpretable, deterministic | Narrow use cases, requires dev work, may miss edge cases |
General Quality Assessment (Judgment) | Holistic judgment of outputs using broad guidelines | Relevancy ratings based on written instructions | Quick to implement, good for early-stage evaluations | Subjective, low diagnostic power |
Rubric Evaluation (Judgment) | Task-specific rubrics with detailed criteria and scoring | HealthBench from OpenAI | Detailed feedback, standardization, actionability | Needs domain experts, rigid structure |
Composite Scoring | Combines multiple scoring methods for balance | BLEU + LLM judgment; Weighted blends of scores | Balances nuance with consistency | More complex setup, harder to validate |
Second, the scoring methodology defines how the benchmark evaluates tasks. There are a few different techniques for this, from basic statistical scoring to judgement scoring, which unlocks real understanding of model performance after the prototype stage. Let’s dive a little deeper:
Each of these scoring techniques can be implemented using different types of evaluators. Human annotators bring domain expertise and nuanced judgment, LLM-as-a-judge offers flexibility and speed, and code-based scoring provides consistency and repeatability. In practice, the best evaluation setups combine nuanced judgement with automation, e.g. rubric guided scoring via LLMs, with expert in the loop spot checks.
Off-the-shelf benchmarks are a practical starting point. They come with predefined tasks and scoring methods, making it easy to plug in your model and get a baseline score. They’re especially useful early on, when you’re validating core capabilities or comparing across models.
But as your system moves closer to production, general-purpose benchmarks often fall short. Here’s why:
For these reasons, we recommend adapting or building your own benchmark datasets as your model matures. While starting with off-the-shelf benchmarks gives you some insight, a custom benchmark allows you to define what “good” looks like in your own context, track progress meaningfully, and catch regressions before they reach production.
Up next: In the following article, we’ll show you how to run a benchmark dataset using Label Studio.
As your models scale, so too should your benchmarks. In the early phases of your AI project, building out a full benchmark of your own isn't necessarily worth the cost (in both time and money). However, as your models and applications scale from prototype to production, your benchmarks should progress from off-the-self general ones toward custom benchmarks tailored to your specific use cases.
To reflect increasing specificity in both test cases and evaluation criteria as projects grow, this is how a benchmark strategy may evolve:
In this stage, you’re looking to prove that the idea you have for a model or system is viable for further research and development
Key Question: Does my model do what I want it to do?
Evaluation Strategy: Easy to compute algorithmic metrics like Precision, Recall, or F1. These metrics, when computed against human annotated test sets, give you a sense of the viability of your model without the overhead of making your system fit another benchmarking schema.
What to Consider:
Now that you have a model you think will work, it’s time to put it to the test.
Key Question: Does my system work and what are the obvious failure patterns?
Evaluation Strategy: Using off-the-shelf benchmarks allows you to compare your model with generally agreed upon core functionality on a broad set of tasks. While they may not be specific to your use case, these benchmarks are a good starting point to find failure patterns in your model.
What to Consider:
As your model improves, your benchmark needs to capture the improved functionality. The work you’ve done to improve your model creates a new set of baseline expectations, along with new edge cases to be aware of. It’s crucial at this stage to have a deep understanding of how your model fails systematically, and to provide feedback for improvement.
Key Question: How consistent is performance and what patterns are there in system behavior?
Evaluation Strategy: Creating specialized benchmark tasks is crucial at this stage to capture the nuances of the system you’re building. This can look like domain specific out-of-the-box benchmarks (like HealthBench for healthcare), the adaptation of other existing benchmarks, or creating your own.
What to Consider:
Ensure production reliability and performance with use case coverage and ongoing monitoring.
Key Question: How does the system perform over time in the real world, and what is its impact?
Evaluation Strategy: Custom Benchmarks are the way to go here. You’ve built out a nuanced, production-ready system, and your benchmark should reflect the key use cases, nuanced responses, and easy-to-miss edge cases that will ensure production viability in the long term.
What to Consider:
Continuous evaluation in production systems is the key to success. Automate evaluation pipelines and feedback loops to improve and adapt models efficiently.
Key Question: How can our system learn and improve automatically in an environment that’s constantly evolving?”
Evaluation Strategy: Continuously expanding your benchmark to capture new, real-world scenarios gives you confidence in your current and future iterations of the model.
What to Consider:
This is the second post in our AI Benchmarks series - your guide to building effective, scalable AI evaluations. Whether you’re experimenting on your own AI system or you’re a seasoned practitioner looking to strategize an enterprise evaluation workflow, this series has something for you. In the next post, we’ll show you how best to run benchmarks in Label Studio for fast, reliable evaluation with human feedback.
From off-the-shelf assessments to production-ready custom benchmarks, we've helped teams navigate this journey. Reach out to our team when you’re ready to design an evaluation strategy that scales with your LLM development timeline.