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How we test AI before you rely on it.

The method behind every Independent AI Evaluation, published so your team can check it. Thresholds come first, every failure is listed, and the evidence is yours to re-run.

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The method

This is the method behind every Independent AI Evaluation. It tests one AI system on one use case: a tool you bought, licensed or had built elsewhere, run on your own questions and cases, in your own environment. The same method sits behind the acceptance test on a system Techsider builds for you, which is always labelled “acceptance test (not independent)”.

Thresholds come first

Before any test runs, you and we agree in writing:

  • what counts as a correct answer, a false answer and a false refusal for your use case;
  • the highest false-answer rate you will accept, and the highest false-refusal rate;
  • how each failure is rated, on your own risk matrix.

The thresholds don’t move once results are in. If one has to change before then, the report says what changed and why.

Sample size and confidence intervals

A test set is a sample, so every rate is reported with a confidence interval, never as a bare score. The sample size is set before testing, aiming for an interval narrow enough to decide against your threshold. Rates are reported for each category too, each with its own interval, and a small category shows a wide interval rather than hiding it.

Worked example (an example, not a result). Suppose 100 test questions produce 5 false answers. The observed false-answer rate is 5%, and its 95% Wilson interval runs from about 2.2% to 11.2%. Against a 10% threshold that sample can’t settle the question, because the interval crosses the line. The same 5% rate on 400 questions gives an interval of about 3.3% to 7.6%, which sits below it. And if none of 100 questions fails, the upper end of the interval is still about 3.7%, not zero.

Ground truth

Ground truth is built from your own material by people who know it. Each test item carries an expected answer, or an expected refusal where your documents don’t hold the answer, and the source passage that supports it. The report records who labelled each item, by role, and when.

Inter-rater agreement

A share of the items is labelled independently by two people. Their agreement is reported as Cohen’s kappa, or Krippendorff’s alpha where more than two people label. A third person settles each disagreement, and the rule that settled it goes into the labelling guide. If agreement is low, the guide is fixed and the items are labelled again before any system is scored against them.

Grading, and LLM-judge calibration

Where people can grade every output, they do. Where a language model grades at scale (an LLM judge), it is calibrated first: it grades items people have already graded, and its agreement with those human grades is reported for each category. People grade any category where the judge’s agreement falls below the level agreed at the start. The judge’s model, version and prompt are recorded, and it runs in your subscription with everything else.

False answers and false refusals, reported separately

A false answer is a confident answer that is wrong, incomplete or unsupported by its source. A false refusal is the system saying it doesn’t know when your documents hold the answer. Each is counted and reported on its own, against its own threshold. A system can look accurate by refusing too often, or look helpful by answering when it shouldn’t, and one combined score would hide both.

Every failure, listed

The report lists every failure, not only a score: the input, the output, the expected answer and its source, the category and the rating. Findings are rated to your risk matrix and mapped to the framework you already use, such as ISO/IEC 42001, the NIST AI RMF or your own model-risk template. In Australia: the DTA’s AI use case impact assessment, the NSW AI Assessment Framework or a Queensland FAIRA.

Evidence you can re-run

You keep a reproducible evidence bundle:

  • the versioned test set and its labels;
  • the model and deployment identifiers, prompts and parameters, where the platform exposes them;
  • timestamps, raw outputs and grader outputs, with hashes;
  • a replay script that runs in your own cloud subscription. The graders run there too, so test data and results stay with you. Our team reaches your subscription remotely from Sydney, under the data-transfer terms in your contract. The system under test handles each question where its vendor runs it, and the report records the vendor’s published processing location, with its date.

The harness and the question set are handed over, with a training session for your data, risk or second-line team, so you can re-run the test without us.

When the model changes

When the model changes, or may have changed, the same test set runs again and the two runs are compared item by item. You see which answers changed, and whether each rate still meets its threshold.

What the report is, and what it isn’t

The report sets out findings, not an assurance opinion. It is not an ISAE 3000 or ISRE engagement (ASAE 3000 or ASRE in Australia). Techsider never issues an Independent Evaluation Report on a system it built, configured or advised on for the same client.

Adversarial testing

Techsider never does adversarial testing in-house. Where it’s needed, it’s done by a CREST-accredited tester you engage. An Agentic AI Control Evaluation is a review of configuration: identity, permissions, approval gates and logging. It is not an attack.

The sample report

Australian example

Sample evaluation report

Sample report: Techsider testing its own demo system, so not independent.

Illustrative sample: not a real test run

System
Techsider’s Knowledge Assistant demo: cited answers from Victoria’s public-sector generative AI Guideline and Guidance, and from APRA’s CPS 230
Sample size
n = 120
Method
Each question asked once, in a fresh session, and its answer graded against the ground truth. A right answer that cites a passage that doesn’t hold it counts as a wrong citation, not a false answer. Each threshold is the highest rate accepted, agreed before testing, and it is met only when the whole Wilson score interval sits below it. The failures listed are model version A’s. Model version B’s rates are shown for comparison, without intervals, and under the same rule it meets only the wrong-citation threshold.
Ground truth
An expected answer, or an expected refusal, for each question, with the passage that supports it, from the Victorian Guideline and Guidance and from CPS 230
Inter-rater agreement
Cohen’s kappa, on the double-labelled questions: 0.81
Failures mapped to
NSW AI Assessment Framework risk bands, as the NSW AI Operational Policy, Final version 1.1 (approved 31 August 2026), defines them: each failure takes the band its impact matches

Thresholds

Each threshold, its target and the result
MetricTargetResultConfidence intervalOutcome
False-answer rate5%1.7%0.5–5.9% (95% CI)Fail
False-refusal rate5%0.8%0.1–4.6% (95% CI)Pass
Wrong-citation rate5%0.8%0.1–4.6% (95% CI)Pass

Failures found

  1. false-answer-1 Rating: High Framework level: High-Risk

    Asked “Is Microsoft 365 Copilot approved for use in my department?”, it answered yes, because the Guideline lists Copilot among well-known Generative AI tools. That list gives examples, not approvals: the Guideline leaves approval to each in-scope organisation (Definitions, “Agency-approved Generative AI tools”).

  2. false-answer-2 Rating: High Framework level: High-Risk

    Asked “How quickly must we tell APRA when an incident disrupts a critical operation?”, it gave only the 72-hour clock for an operational risk incident likely to have a material impact (¶32). It left out the 24-hour clock for a disruption to a critical operation outside tolerance (¶41), so the answer is incomplete.

  3. false-refusal-1 Rating: Low Framework level: Low-risk

    Asked “What if our agency wants to work differently from the guideline?”, it said the documents don’t cover it. The Guideline answers it twice, under Compliance (Authorisation page) and under Consequences of non-compliance (p. 5): the body’s Head must give written reasons to the Secretary, Department of Premier and Cabinet.

  4. wrong-citation-1 Rating: Medium Framework level: Medium-risk

    Asked “How does CPS 230 define critical operations?”, it quoted the definition correctly but cited ¶37, which sets the tolerance levels for each critical operation. The definition is ¶34.

Model-change regression

The same test set on Model version A and Model version B
MetricModel version AModel version B
False-answer rate1.7%2.5%
False-refusal rate0.8%3.3%
Wrong-citation rate0.8%0.8%
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