AI Evals: An Essential Guide for AI Product Managers
AI evaluations are essential for product teams to measure and ensure the quality of AI products and workflows, providing confidence and catching issues early. Unlike traditional software, LLMs' probabilistic nature and semantic tasks require product teams to actively define what "good" performance means for their specific context.

Key Takeaways
- AI evaluations (evals) are critical for measuring AI product performance, ensuring quality, and catching issues proactively.
- Traditional software testing methods are insufficient for LLMs due to their probabilistic output and subjective semantic tasks.
- Product teams must define 'what good looks like' for their specific AI applications, as correctness is highly context-dependent.
- Evals provide a vital feedback loop, enabling product teams to build confidence in their AI solutions and iterate effectively.
- The responsibility for defining success criteria for AI products rests firmly with the product team, not third-party tools.
The Imperative of AI Evals for Product Teams
For over a year, AI evaluations, or "evals," have emerged as a pivotal skill for product teams navigating the complexities of artificial intelligence. Despite their growing importance, many product professionals still grapple with a clear understanding of what evals entail. This is often due to existing literature being tailored for engineers or lacking practical guidance for product-focused roles. According to Product Talk, the goal is to demystify evals, making them accessible and actionable for product teams.
AI evals are essentially structured methods for measuring the performance and effectiveness of an AI product or workflow. They instill confidence that AI applications are functioning as intended, help maintain quality standards, and proactively identify issues before they reach end-users. Much like other discovery practices such as interviewing or assumption testing, evals serve as a critical feedback loop, ensuring product development stays on track.
Why Product Teams Cannot Afford to Ignore Evals
Whether you're leveraging AI internally for tasks like drafting Product Requirements Documents (PRDs), synthesizing customer feedback, analyzing behavioral data, or processing meeting notes, evals offer tangible benefits. They can verify if an AI-generated PRD meets all specifications, confirm the authenticity of customer quotes used by AI, or ensure data analysis adheres to the right initial questions.
For product teams building customer-facing AI solutions, evals are even more critical. They provide the necessary assurance that the AI product delivers consistent quality across diverse customers and use cases. Without robust evaluation frameworks, determining the true efficacy and reliability of an AI product remains a significant challenge.
The Unique Challenges of Evaluating LLMs
Traditional software development relies on clearly defined requirements and automated testing to ensure functionality. If a program is designed to sum two numbers, unit tests can verify its consistent output. However, evaluating Large Language Models (LLMs) presents two distinct hurdles:
Probabilistic Nature
Unlike deterministic code, LLMs are probabilistic. Given the exact same input, an LLM might produce varying outputs. This makes traditional unit testing, which expects a precise, repeatable outcome, inadequate. Evals, in contrast, aim to measure the rate at which an LLM delivers a correct or desirable response, acknowledging the inherent variability.
Semantic Ambiguity
LLMs excel at semantic tasks, which often involve subjective interpretations rather than clear-cut right or wrong answers. For instance, evaluating an AI-generated joke isn't about a single correct answer but rather criteria like humor, cleverness, or appropriateness. Before any evaluation can occur, product teams must first define what "good" or "correct" looks like, even when the boundaries appear blurry.
Product Talk provides examples, such as defining correctness for interview summaries (following narrative, including key moments, no fabricated quotes) or an "Interview Coach" agent (sorting questions, avoiding leading questions, appropriate tone, accurate scoring). Each dimension required careful definition of desired outcomes.
Defining "Good" is a Product Team's Core Responsibility
It's crucial not to outsource the definition of "good" to third-party eval tool providers. While some tools offer built-in evaluations for generic attributes like conciseness or helpfulness, these definitions are rarely universally applicable. What constitutes a "concise" response for a student learning astrophysics might be insufficient for an astrophysics professor. Correctness is inherently context-dependent and specific to your product's users and objectives. Therefore, establishing these definitions is a fundamental task for the product team.
The initial step in this process involves closely observing the LLM's current behavior within your product or workflow. By understanding its outputs, you can begin to articulate the criteria for what constitutes a successful and valuable interaction.
Why This Matters for AI Product Managers
For AI Product Managers, mastering AI evaluations is not just a technical skill but a strategic imperative. Evals directly inform your product strategy by providing quantitative and qualitative data on whether your AI solutions are meeting user needs and business objectives. They are fundamental to shaping your roadmap, ensuring that development efforts are focused on improving measurable aspects of AI performance, rather than relying on intuition.
In the realm of AI agents and user experience (UX), evals are indispensable. They allow PMs to move beyond anecdotal feedback, providing concrete metrics on agent accuracy, helpfulness, and user satisfaction. This data is crucial for iterating on agent design, prompt engineering, and overall user interaction flows, ensuring a delightful and effective experience.
From a Go-to-Market (GTM) perspective, robust evals provide the confidence needed to launch AI products, backed by evidence of their reliability and value. They also underpin your analytics strategy, enabling you to track performance post-launch, identify areas for continuous improvement, and articulate the ROI of your AI initiatives. Ultimately, evals mitigate risks associated with AI deployment, such as hallucinations or biased outputs, safeguarding your product's reputation and user trust.