Task Statement 3.4: Describe methods to evaluate foundation model performance.

Evaluating foundation models goes beyond just measuring technical accuracy—it requires a holistic approach that includes human judgment, standardized benchmarks, task-specific metrics, and real-world feedback. Key metrics like ROUGE, BLEU, F1 score, BERTScore, and perplexity assess performance based on use case (e.g., summarization, translation, classification). At the business level, models must demonstrate clear impact through task completion efficiency, productivity gains, user satisfaction, and alignment with strategic goals like automation or personalization. A successful evaluation strategy combines robust quantitative analysis with continuous feedback to ensure that foundation models remain useful, fair, and aligned with evolving business needs.