Agentic AI Notebook
Phase 19

Tool Evaluation

~3 min read

Concept & How It Works

  • Key points are in the visual diagram above.

Why Does It Exist?

Wrong tool calls cause real side effects — deleted records, wrong emails. Evaluating tool behavior isolates the riskiest failure mode in agentic systems.

Real-World Analogy

Tool eval is checking a surgeon picks the right instrument — a brilliant diagnosis means nothing if they grab a scalpel when they needed a suture.
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Visual Workflows

What is Tool Evaluation?

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Example

Scenario

Query 'What's my balance?' should call `get_balance` not `transfer_funds` — eval flags 3/100 misfires on ambiguous phrasing.

Solution

In Eval Engineering & Observability, apply Tool Evaluation to this scenario: Query 'What's my balance?' should call `get_balance` not `transfer_funds` — eval flags 3/100 misfires on ambiguous phrasing. Identify the inputs, run the technique, validate the output, and note one thing you would monitor in production.

Practice Task

Do this before moving to the next module — reading alone is not enough.

Open the Code Walkthrough below and run it locally. Change one parameter related to Tool Evaluation (e.g. model, temperature, top_k, or tool name), observe the difference in output, and write 2–3 sentences explaining what changed.

Code Walkthrough

Highlighted lines show where Tool Evaluation happens in the code.

Tool Evaluation
1def tool_selection_score(trace, expected_tool):  # define a reusable function2    actual = next(s for s in trace if s.type == "tool_call")  # key line for Tool Evaluation3    return actual.name == expected_tool  # return the result4
5assert tool_selection_score(run("balance?"), "get_balance")  # key line for Tool Evaluation

Commands to Remember

Commands to Remember

  • pip install langsmith # trace and evaluate LLM runs
  • pip install arize-phoenix # open-source LLM observability
  • pip install opentelemetry-api opentelemetry-sdk # distributed tracing

Common Mistakes

  • Treating Tool Evaluation as a black box without evaluation
  • Ignoring cost and latency in production
  • Skipping error handling for tool evaluation

Cheat Sheet

Quick recap — the most important points from this module.

Cheat Sheet

quick ref
  • Tool Evaluation
  • Argument F1
  • Spurious Calls
  • Function Calling Eval