AAI Agentic Handbook
Evals & LLMOps

Human annotation

Mid levelReviewed Oct 2026In 9 interview questionsIn 2 posts

People labelling model outputs against a rubric; the ground truth that LLM judges are calibrated against, and the most expensive data in the eval stack.

In plain English

Human annotation means people read model outputs and label them: pass or fail, which answer is better, which sentence is unsupported. These labels are the ground truth for your Golden set and the yardstick for checking whether an LLM-as-judge can be trusted.

The labellers might be engineers, domain experts (lawyers, nurses) or a vendor's workforce, depending on how much expertise the judgement needs.

Analogy

The referees' panel whose decisions are used to train and audit the video-review system; the system is faster, but you only trust it because it matches the panel.

Common pitfall

Outsourcing labels to generalists for an expert task to save money. A crowd labeller cannot tell a correct drug interaction from a plausible one; you get confident, cheap, wrong ground truth, and the judge you calibrate against it inherits the error.

How it actually works

Three decisions dominate quality. Who labels: domain experts for anything where a wrong label is expensive (clinical, legal, financial), trained generalists for style and format. What they see: the input, the retrieved context and the output, plus a Rubric with anchored examples, and a free-text 'why' field that feeds Error analysis. How you check them: double-label 10–20% of items and track Inter-annotator agreement; adjudicate disagreements with a third person and turn recurring disagreements into rubric edits.

Shankar et al. (2024) found criteria drift: people refine what they mean by 'good' while grading, so the first 50 labels are partly about discovering the rubric. Plan a calibration round, then freeze. Tooling: Argilla, Label Studio, or a spreadsheet for the first 200. The most valuable use of human time is not bulk labelling but labelling the 100–300 items that validate a judge, which then labels the rest.

What I'd ship on day one

Engineers label the first 100 traces themselves (fastest way to learn the failure modes). Then a calibration round of 50–60 items with two labellers, 20% overlap thereafter, a free-text 'why' on every fail, Argilla or Label Studio once past ~300 items, and domain experts for clinical, legal and financial content.

Worked example

Clinical intake summaries. A nurse labels at ~25 items/hour (2.4 min each) against 5 binary criteria. Plan: 60-item calibration round with two nurses (kappa 0.48 → rubric edits → 0.71), then 240 items single-labelled with 20% double-labelled. 300 items ≈ 12 nurse-hours + 3 for overlap ≈ 15 hours. Those labels validate a judge (kappa 0.68 vs nurses), which then grades 3,000 production samples a month.

In the interview

Say: "Humans label the few hundred items that validate the judge; the judge labels the thousands. I double-label 20% and adjudicate, and experts label anything where a wrong label is expensive." Expect: "how do you keep labels consistent?": calibration round, anchored rubric, overlap, kappa.

01Calibration round60 items, 2 labellers
02Fix rubrickappa < 0.6
03Label set20% double-labelled
04Adjudicatethird labeller
05Validate judgekappa vs humans
Humans set the standard once; the validated judge applies it at scale.

Numbers worth knowing

Labelling throughput
20–60 items/hourbinary criteria; ~25/h for expert review of long clinical or legal outputs, 60/h for short answers
Overlap for agreement tracking
10–20% of itemsdouble-labelled by a second person
Labels needed to validate a judge
100–300 per criterionkappa estimate within about ±0.1

How to decide

WhenDo this
Wrong labels are costly (clinical, legal, financial)Use domain experts and budget for them; use generalists only for format and style criteria.
Two labellers' kappa is below 0.6 after calibrationStop labelling; rewrite the rubric, then re-calibrate.
You need more than ~1,000 labels a monthValidate an LLM judge on 300 human labels and use humans for audits and disagreements only.

Cost maths

Cost = items × (1 + overlap) / throughput × hourly rate. Assumptions: domain expert $100/h, 25 items/h; generalist $25/h, 60 items/h. 300 expert items × 1.2 / 25 × $100 = $1,440. The same work with generalists ≈ $150, but only valid for criteria a non-expert can judge. Monthly judge validation (100 items, expert) ≈ $480.

Operating it

Time to scale up when…
  • Label backlog exceeds two weeks: move bulk grading to a validated judge.
  • More than 3 labellers: add an adjudication role and a weekly calibration session.
What to monitor
  • Pairwise kappa on overlapping items, weekly: alert below 0.6.
  • Per-labeller pass-rate deviation from the group: flag anyone more than 15 points off.
  • Label backlog age: alert when the oldest unlabelled flagged trace exceeds 14 days.

When it goes wrong

What users saw

A financial-filings Q&A judge reported 94% accuracy; analysts found wrong fiscal-year figures in about one answer in ten.

How it was caught

An analyst spot check of 50 answers found 6 errors the judge had passed.

Root cause

The judge was validated against labels from a generalist vendor who checked that a number was present and cited, not whether it matched the filing's fiscal-year convention.

Fix

Re-labelled the 300-item validation set with two analysts (kappa 0.74), added a 'figure matches source period' criterion, and re-validated the judge, whose true pass rate dropped to 86%.

Sources

  1. Who Validates the Validators? Aligning LLM-Assisted Evaluation of LLM Outputs with Human Preferences — Shankar et al., 2024paper
  2. Your AI Product Needs Evals — Hamel Husain, 2024blog
  3. The Measurement of Observer Agreement for Categorical Data — Landis & Koch, 1977paper

Check yourself

Three questions. Every option is explained once you answer.

1ConceptWhat is the highest-value use of scarce expert labelling time in an LLM eval programme?
2ScenarioA clinical summariser needs 300 labelled items. A vendor offers generalist labels at a tenth of the cost of nurses. When is the vendor acceptable?
3Calculation300 items, 20% double-labelled, experts at 25 items/hour and $100/hour. Roughly what does labelling cost?