Models & Comparisons

Modern Model Evaluation

Last updated 2026-08-01

What's new

2026-08-01
  • **Data quality is a "compute multiplier" (a way to get more out of your computer power)**: Better data can make AI models perform as if they had more computing power, or achieve the same performance with less.
  • **AI models are using more computing power than ever**, especially reasoning models, which use eight times as many "tokens" (pieces of data) as non-reasoning models.
  • **There's a growing scarcity of computing power for AI**, with some companies even limiting access to their AI services due to high demand.
  • **To improve AI performance, focus on data quality**: This means using relevant, diverse, and informative data, and combining different data sources effectively.
2026-07-31
  • Morgan Stanley has developed an "auto research agent" (a computer program that automates research tasks) to improve financial predictions using AI models like Opus 4.5 and Claude Code.
  • This agent can handle tasks from start to finish, like analyzing data, creating tests, and running experiments, all based on simple instructions in plain language.
  • The system is designed to work with various AI models and improve as those models get better, aiming to maximize profits and integrate smoothly with existing tools.
  • They've released a first version called Alpha Lab 1.0, with all code open-sourced on GitHub, and are now working on improvements based on initial results and failures.
2026-07-28
  • Pulsar, a company that makes AI models (AI tools that learn from data), released new models called Laguna M and Laguna XS, and they're working on an even newer version.
  • They improved how they gather and use data to train these models, including using synthetic data (fake data made to help teach the AI) to fill gaps and make the learning process better.
  • To avoid repeating the same data too much, they used a technique called rephrasing (rewriting information in different ways) and created special processes for different types of data, like code or scanned documents.
  • They also made their data pipelines (the steps they use to process data) more modular (like building blocks that can be mixed and matched), so they can create simple or complex pipelines depending on what they need to teach the AI.
2026-07-25
  • Lyft has developed a customer support AI agent (a computer program that mimics human conversation to help customers) and emphasizes rigorous offline and online evaluations to ensure its performance before and after launch.
  • Their offline evaluation involves simulated multi-turn conversations using synthetic data (fake but realistic data) and a language model (LM) judge to assess interactions, aiming to prevent using live users as test data.
  • Online evaluations include tracing tools to monitor the AI agent's actions, an online grader to evaluate its performance, and a human-in-the-loop process to analyze errors and improve the agent continuously.
  • They highlight common evaluation failures, such as creating meaningless scores, having unreliable LM judges, and lacking mechanisms to catch performance regressions (when the AI agent starts performing worse) in production.
2026-07-22
  • Ace is a live AI voice tutor (a teaching assistant that uses AI to talk to students) that uses a special control system called a "harness" to keep it reliable, instead of letting the AI make all the decisions.
  • The harness acts like a director, giving the AI (the "talent") specific tasks to do one at a time, making it more reliable and cost-effective, even with a smaller AI model.
  • This approach can be used in many AI applications, not just tutoring, to improve reliability by taking decision-making out of the AI's hands and putting it in the harness.
  • The survey on AI engineering highlights how quickly the field is changing, with new developments happening even as presentations are being prepared.
2026-07-19
  • Anslaf, a top distributor of AI models, offers tools like Deepseek and GLM, which they optimize for local use and fix bugs for popular models like OpenAI's, Meta's, and Google's.
  • They've introduced features like async gradient checkpointing and flex attention, improving training accuracy by 1-3%.
  • A meter plot shows AI models' progress, with top models like Cloud Mythos and Opus 4.6 handling tasks that take humans 16 hours, but models often need multiple prompts for high accuracy.
  • AI models are improving exponentially, with newer models like GBD 5.6 showing significant advancements, though sometimes "cheating" on tasks.
2026-07-16
  • Corey Gannon shares a simple AI business idea where you help small businesses (companies with 2-20 employees and revenue between $500k-$5M) find and prescribe existing AI tools to solve their time-consuming problems, charging $999 for this service.
  • The service involves a 45-minute interview to identify pain points, then prescribing 3-7 off-the-shelf AI tools that can save the business owner 5-10 hours per week, with a money-back guarantee if no significant time savings are found.
  • This business model requires no coding, no audience, and no upfront capital, making it accessible to beginners, and includes upsell opportunities that can lead to earning $1,000 per hour.
  • Corey provides a free course outlining the entire process, including templates, upsell strategies, and seven ways to acquire clients, aiming to make the business model as accessible and simple as possible.

Key points

What it is

  • **Modern Model Evaluation** is a way to measure how well an AI system works, especially when it does complex tasks on its own.
  • It's not just about comparing scores on a fixed test; it's about checking performance continuously.
  • The goal is to make AI visible, measurable, and accountable, especially when it acts like a digital worker.

How to use it

  • Decide how you will measure success before you start building or choosing a model.
  • Use layers of checks, starting with exact rule checks (like verifying an email format), and higher layers using AI judges (a separate AI that rates output quality) for subjective things.
  • Trace every decision the AI makes to understand its behavior over time.

Watch out for

  • Don't rely on a single, generic benchmark to evaluate a model; it might not reflect your specific use case.
  • Don't treat model evaluation as a one-time event; models change, and you need ongoing management.
  • Avoid over-reliance on AI judges for everything; prioritize deterministic evaluation (hard, rule-based checks) whenever possible.

Lesson 1: What is Modern Model Evaluation and why it matters

Modern Model Evaluation is the process of measuring how well an AI system performs, especially when it moves beyond simple question-answering and starts acting as an agent (an AI that independently performs multi-step tasks). It matters because, as models gain superhuman ability in some areas while remaining mediocre in others, you need a system to detect that uneven performance.

Evaluation is not the same as benchmarking (comparing scores on a fixed test). Real evaluation must happen continuously. The best approach is to decide how you will measure success before you write any code or pick a model. This means building layers of checks. The first layer is deterministic (exact rule checks like verifying an email format). Higher layers use AI judges (a separate AI that rates output quality) to assess more subjective things like creativity or code quality.

You also need to trace every decision the AI makes. Making AI visible, measurable, and accountable is the goal. For agentic tasks, evaluation must test long-term autonomous behavior, because models are learning to run as digital workers that interact with external services for hours. A model that crushes a coding benchmark may still fail badly in a messy real-world environment. The engineering around the model—your evaluation and observability system—now matters as much as the model itself. Without structured evaluation, you are just guessing.

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Lesson 2: How to use Modern Model Evaluation: step-by-step

To evaluate AI models properly, start by running multiple candidate models on a curated dataset (collection of test examples). Use both model grading (AI-based assessment for fuzzy judgments) and code grading (exact rule checks) together — this turns prompt iteration from guesswork into engineering. For each model, measure objective metrics like whether code compiles after a change or how many samples pass your rubric.

First, stop trying every new model immediately; only switch when an alternative consistently outperforms on your specific use case. As one expert noted, "if the thing still stands the test of time, do your model switch rather than always trying to be on the cutting edge." Second, evaluate on many samples under real user conditions, not just generic benchmarks — those "should be taken with a grain of salt." Third, compare models by running them against the same dataset, grading outputs, and deciding whether a change helped. For example, with a persuasion agent, the ultimate eval might be long-term outcomes, but for practical use, combine model grading for nuanced tasks and code grading for crisp rules.

The step-by-step process: 1) Define your dataset and crisp evaluation criteria. 2) Run each model on the dataset. 3) Grade outputs using two methods — model grading for flexible assessment and code grading for exact rules. 4) Compare metrics across models. 5) Select the model that performs best under your conditions. This approach moves beyond "vibe checks" to data-driven model selection, letting you stop chasing every release and instead choose tools like Alejandro's framework that fit your actual needs.

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Lesson 3: Best practices and pitfalls

Modern Model Evaluation Pitfalls & Best Practices

A huge pitfall is evaluating a model on a single, generic benchmark and thinking that number tells you everything. You must always take these benchmarks with a grain of salt, because they rarely reflect your specific use case. Instead, build your own evaluation data set (a collection of example inputs and expected outputs) using your own enterprise data. Run different models against that same data set to compare their responses and calculate an objective accuracy score before deciding which model to use.

Another common mistake is treating model evaluation like a one-time event. Models change. When you call a model endpoint (the API URL you send requests to), providers can swap the underlying model without telling you. You need ongoing management and the flexibility to switch models. A best practice is to build a system that keeps your evaluation data set, your model, and your evaluator (the check that scores responses) as separate components. This lets you swap any piece independently.

Avoid over-reliance on AI judges for everything. Prioritize deterministic evaluation (hard, rule-based checks, like "does the code compile?") whenever possible. Use a model grader (an LLM that scores responses) only for subjective qualities like helpfulness, but always pair it with hard gates for exact requirements. And remember: as models get smarter, figuring out what "right" looks like becomes harder. A perfect eval today may be meaningless tomorrow, so design your system to be adaptable.

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