Evaluation Methodology

Challenges of Evaluating Foundation Models

Why evaluating foundation models is harder than traditional ML — intelligence, open-ended outputs, black boxes, saturating benchmarks, and expanding scope.

Challenges of Evaluating Foundation Models

Evaluating ML models has always been difficult. With the introduction of foundation models, evaluation has become even more so. There are multiple reasons why evaluating foundation models is more challenging than evaluating traditional ML models.

Why Foundation Models Are Harder to Evaluate

Smarter Models Are Harder to Judge

The more intelligent AI models become, the harder it is to evaluate them. Most people can tell if a first grader's math solution is wrong. Few can do the same for a PhD-level math solution. It's easy to tell if a book summary is bad if it's gibberish, but a lot harder if the summary is coherent. To validate the quality of a summary, you might need to read the book first.

This brings us to a corollary: evaluation can be so much more time-consuming for sophisticated tasks. You can no longer evaluate a response based on how it sounds. You'll also need to fact-check, reason, and even incorporate domain expertise.

Open-Ended Outputs Break Ground Truth

The open-ended nature of foundation models undermines the traditional approach of evaluating a model against ground truths. With traditional ML, most tasks are close-ended. For example, a classification model can only output among the expected categories. To evaluate a classification model, you can evaluate its outputs against the expected outputs. If the expected output is category X but the model's output is category Y, the model is wrong.

However, for an open-ended task, for a given input, there are so many possible correct responses. It's impossible to curate a comprehensive list of correct outputs to compare against.

Models Are Treated as Black Boxes

Most foundation models are treated as black boxes, either because model providers choose not to expose models' details, or because application developers lack the expertise to understand them. Details such as the model architecture, training data, and the training process can reveal a lot about a model's strengths and weaknesses. Without those details, you can evaluate only a model by observing its outputs.

Public Benchmarks Saturate Fast

Publicly available evaluation benchmarks have proven to be inadequate for evaluating foundation models. Ideally, evaluation benchmarks should capture the full range of model capabilities. As AI progresses, benchmarks need to evolve to catch up. A benchmark becomes saturated for a model once the model achieves the perfect score. With foundation models, benchmarks are becoming saturated fast.

Evaluation's Scope Has Expanded

Last but not least, the scope of evaluation has expanded for general-purpose models. With task-specific models, evaluation involves measuring a model's performance on its trained task. However, with general-purpose models, evaluation is not only about assessing a model's performance on known tasks but also about discovering new tasks that the model can do, and these might include tasks that extend beyond human capabilities. Evaluation takes on the added responsibility of exploring the potential and limitations of AI.

When OpenAI's GPT-o1 came out in September 2024, the Fields medalist Terrence Tao compared the experience of working with this model to working with "a mediocre, but not completely incompetent, graduate student." He speculated that it may only take one or two further iterations until AI reaches the level of a "competent graduate student." In response to his assessment, many people joked that if we're already at the point where we need the brightest human minds to evaluate AI models, we'll have no one qualified to evaluate future models.

Benchmarks Keep Getting Replaced

GLUE (2018)

GLUE (General Language Understanding Evaluation) came out in 2018 and became saturated in just a year, necessitating Super-GLUE in 2019.

NaturalInstructions (2021)

NaturalInstructions (2021) was replaced by Super-NaturalInstructions (2022).

MMLU (2020)

MMLU (2020), a strong benchmark that many early foundation models relied on, was largely replaced by MMLU-Pro (2024).

Interest in Evaluation Is Growing Fast

The good news is that the new challenges of evaluation have prompted many new methods and benchmarks. Figure 3-1 shows that the number of published papers on LLM evaluation grew exponentially every month in the first half of 2023, from 2 papers a month to almost 35 papers a month.

Figure 3-1. The trend of LLMs evaluation papers over time. Image from Chang et al. (2023).

In my own analysis of the top 1,000 AI-related repositories on GitHub, as ranked by the number of stars, I found over 50 repositories dedicated to evaluation (as of May 2024). When plotting the number of evaluation repositories by their creation date, the growth curve looks exponential, as shown in Figure 3-2.

I searched for all repositories with at least 500 stars using the keywords "LLM", "GPT", "generative", and "transformer". I also crowdsourced for missing repositories through my website https://goodailist.com.

Figure 3-2. Number of open source evaluation repositories among the 1,000 most popular AI repositories on GitHub.

Investment Still Lags the Rest of the Pipeline

The bad news is that despite the increased interest in evaluation, it lags behind in terms of interest in the rest of the AI engineering pipeline.

Balduzzi et al. from DeepMind noted in their paper that "developing evaluations has received little systematic attention compared to developing algorithms." According to the paper, experiment results are almost exclusively used to improve algorithms and are rarely used to improve evaluation.

Recognizing the lack of investments in evaluation, Anthropic called on policymakers to increase government funding and grants both for developing new evaluation methodologies and analyzing the robustness of existing evaluations.

To further demonstrate how the investment in evaluation lags behind other areas in the AI space, the number of tools for evaluation is small compared to the number of tools for modeling and training and AI orchestration, as shown in Figure 3-3.

Figure 3-3. According to data sourced from my list of the 1,000 most popular AI repositories on GitHub, evaluation lags behind other aspects of AI engineering in terms of open source tools.

Inadequate investment leads to inadequate infrastructure, making it hard for people to carry out systematic evaluations. When asked how they are evaluating their AI applications, many people told me that they just eyeballed the results. Many have a small set of go-to prompts that they use to evaluate models. The process of curating these prompts is ad hoc, usually based on the curator's personal experience instead of based on the application's needs.
You might be able to get away with this ad hoc approach when getting a project off the ground, but it won't be sufficient for application iteration. This book focuses on a systematic approach to evaluation.
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