Prompt-Based Evaluation

Definition ∞ Prompt-based evaluation assesses the performance of large language models or AI agents by providing specific input prompts and analyzing their generated responses. This method involves crafting targeted queries or scenarios to test the model’s understanding, reasoning, and ability to follow instructions. The quality of the output is then judged against predefined criteria or human annotations. It offers a direct way to gauge an agent’s operational capabilities.
Context ∞ The discussion around prompt-based evaluation frequently centers on its effectiveness in measuring the nuanced capabilities and limitations of LLM agent systems. A key debate involves designing comprehensive and unbiased prompts that accurately reflect real-world use cases. Critical future developments will focus on automated prompt generation and robust metrics for evaluating complex, multi-step agent behaviors. This approach is vital for ensuring the reliability of AI agents in sensitive applications like digital asset analysis.