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LLM Integration: How-to Guide for Businesses

Posted on Lauren Winder

Key takeaways:

  • LLM integrations turn static products into interactive systems by connecting large language models to real workflows and business data
  • The real value comes from context, not just the model, retrieval and clean data are what make responses accurate and useful
  • Without guardrails and clear prompt design, LLM outputs can become inconsistent or unreliable in production
  • A successful integration depends on the full system, backend logic, frontend experience, and data flow all matter
  • Most issues come from poor planning, unclear use cases and weak success metrics lead to wasted effort
  • Real-world testing is critical, user inputs are messy and expose problems that demos never show
  • LLM integrations require ongoing work, continuous monitoring and iteration are what drive long-term performance

Large language models have revolutionized just about every aspect of how we work and think in the past few years, and it seems like every business out there wants to add AI to their platforms. But does it make sense to add an LLM integration to your SaaS tool, website, or business model?

Today, we show you what an LLM integration is, the pros and cons of adding AI models to your current setup, and a full guide on how to make those integrations go live.

What is an LLM integration, and how does it work?

An LLM integration is the process of connecting large language models to your existing systems so they can read, reason, and respond using your business data. Instead of treating an LLM like a standalone chatbot, you plug it into your product, support stack, CRM, or internal tools and let it operate inside real workflows.

At a basic level, it works through API requests. You send a request to an API endpoint provided by the model vendor, authenticate it with an API key, and include the input you want the model to process. That input could be a customer message, a support ticket, or structured data from your backend. The model returns a response, which your application then displays or uses to trigger an action.

That’s the simple version. In practice, most useful implementations go a step further with retrieval augmented generation. Instead of relying only on what the model already knows, your system fetches relevant data, like help center articles, past conversations, or account details, and includes it in the request. The model then generates a response grounded in that context, which makes answers more accurate and business-specific.

Here’s how it typically plays out in a real workflow:

  • A user asks a question in your app or support channel
  • Your system pulls relevant data from internal sources
  • You send everything to the model via an API request
  • The model generates a response using that context
  • The response is returned through the API endpoint and shown to the user

This is why LLM integration is so powerful: you are turning your existing data and systems into something that can interact, assist, and act in real time.

The benefits of adding an LLM integration to your product or service

Adding an LLM integration changes how your product communicates, supports users, and delivers value.

More natural communication

Most products still rely on predefined responses, rigid flows, or static content. That can create friction, especially when users ask something slightly outside the expected path.

With LLMs, you can generate human-like language that adapts to each situation. The tone can match your brand. The level of detail can be adjusted based on the question. Instead of forcing users through menus or forms, your product can respond directly.

This matters most in support, onboarding, and search experiences. Users get answers faster, and they do not feel like they are talking to a script.

Better control over outputs

There is a misconception that LLMs are unpredictable. In reality, you can guide them quite precisely.

You define the desired format for responses depending on the use case. For example, you can return short answers for chat, structured bullet summaries for internal tools, or step-by-step instructions for onboarding flows.

This level of control is especially useful in web apps where consistency matters. You are shaping how information is presented across your product.

Works with your existing stack

One of the biggest advantages is how easy LLMs are to integrate from a technical perspective.

They rely on API interactions, which means you can connect them to your product using almost any modern stack. Most teams already work with programming languages like JavaScript or Python, so adding LLM capabilities does not require a complete rebuild.

You send a request, include the necessary context, and receive a response. From there, you decide how that response is used, whether it is shown to a user, stored, or used to trigger another action.

Responses that reflect your business

Out of the box, LLMs are general-purpose, which is not enough for real products.

When you connect them to your own data, you unlock tailored responses that reflect your business logic, content, and users. That could include pulling in account details, referencing internal documentation, or using past interactions to shape the answer.

This is where the experience improves significantly: users are now getting answers that feel relevant and accurate.

New product capabilities without heavy rebuilds

Once you have the integration in place, you can start building new features on top of it without major engineering effort.

Common examples include:

  • intelligent search that understands intent instead of keywords
  • automated support that can handle a large portion of incoming questions
  • in product assistants that guide users through complex workflows
  • internal tools that help teams find information and complete tasks faster

The key point is that you are not replacing your product. You are extending it. And because everything runs through API interactions, you can keep iterating without slowing down your team.

The downsides of integrating LLMs

LLM integrations can unlock a lot of value, but they are not plug-and-play. Once you move beyond simple demos, a few consistent challenges show up. If you ignore them, you end up with unreliable features or frustrated users.

Unpredictable outputs

LLMs work with natural language, not fixed logic. That makes them flexible, but also harder to control.

The same input can produce slightly different answers. Small changes in user inputs can lead to completely different outputs. For simple use cases, this is manageable. For anything customer-facing or tied to business logic, it can become a problem.

You need guardrails. That includes validation layers, response checks, and clear boundaries on what the model is allowed to do.

Working with unstructured data

Most business data is not clean or standardized. It lives in documents, conversations, tickets, and notes.

LLMs can process unstructured data, but that does not mean they automatically understand it correctly. If your data is messy, outdated, or inconsistent, the output will reflect that.

To get reliable results, you need to organize and filter what you send to the model. That often means adding retrieval augmented generation layers, cleaning your data sources, and deciding what should or should not be included in each request.

Prompt engineering is not optional

Getting useful results from an LLM is not just about calling LLM APIs. How you structure the request matters just as much as the model itself.

Prompt engineering becomes a core part of the system. You need to define instructions, format inputs, and guide the model toward the right type of response.

This takes iteration. What works in testing may not hold up in production, especially when real users start sending unpredictable inputs.

Handling complex tasks is harder than it looks

LLMs are great at generating text, summarizing content, and answering questions. They are less reliable when tasks require strict logic, multiple steps, or exact accuracy.

When you try to use them for complex tasks, things can break down. The model may skip steps, misinterpret context, or produce confident but incorrect answers.

The solution is usually to combine LLMs with traditional logic. Let the model handle language, while your system handles rules, workflows, and validation.

Risk around sensitive data

Sending data to LLM APIs introduces real concerns around privacy and security.

If you are dealing with sensitive data, you need to be very clear about what is being sent, where it is processed, and how it is stored. That includes customer information, internal documents, and anything tied to compliance requirements.

In many cases, you will need to filter or redact data before making a request. You may also need stricter controls around access and logging.

Inconsistent model performance

Even with the right setup, the model’s performance can vary.

Changes in user inputs, updates from the provider, or shifts in your data can all impact results. What works well today may degrade over time if you are not monitoring it.

That is why ongoing evaluation matters. You need to track outputs, test edge cases, and continuously refine how your system interacts with the model.

LLMs are powerful, but they are not deterministic systems. Treating them like one is where most integrations fail.

10-point checklist: should you integrate an LLM into your product?

Before you jump into building, it is worth stepping back and pressure testing the idea. LLM integrations can unlock real value, but only if they fit your product, your data, and your users. Use this checklist to quickly sanity check whether it makes sense for you right now.

1. Do you have a real use case, not just curiosity?

Are you solving a clear problem, like improving support, search, or onboarding? If the idea is vague, the implementation will be too.

2. Will natural language actually improve the experience?

Does your product benefit from users typing or asking questions freely? If structured inputs already work well, you may not need it.

3. Do you have access to useful data?

LLMs are far more valuable when connected to your own data. Think knowledge bases, tickets, CRM data, or product usage history.

4. Is your data in a usable state?

If most of your data is messy or scattered across tools, you will struggle. Unstructured data can work, but it still needs some level of organization.

5. Can you define the desired output clearly?

Do you know what a “good” response looks like? Without a clear desired format, results will feel inconsistent.

6. Are you ready to handle unpredictable user inputs?

Users will ask unexpected questions and phrase things in strange ways. Your system needs guardrails to handle that safely.

7. Do you have the resources to iterate on prompt engineering?

This is not a one-time setup. You will need to refine prompts, test outputs, and improve over time.

8. Are you comfortable working with LLM APIs?

Your team should be able to handle API interactions, manage keys, and handle failures.
If not, expect a learning curve.

9. Have you thought about sensitive data?

Will you be sending customer or internal data through the system? If yes, you need a plan for filtering, compliance, and security.

10. Do you have a way to measure the model’s performance?

You need feedback loops. That could be user ratings, internal reviews, or tracking success rates on specific tasks.

If you are answering “yes” to most of these, you are in a strong position to move forward. If not, it is better to tighten the fundamentals first before adding another layer of complexity.

How to create an LLM integration, step by step

Wondering if you need conversational agents or some other shape or form of LLM integration? Here’s how you can get started, step by step.

1. Define the exact use case and success criteria

Before writing a single line of code, you need to get very clear on what you are actually building. This is where most LLM integrations fail. Teams jump straight into software development without defining the problem, and end up with something impressive but not useful.

Start with a specific use case.

Not “add AI to our product,” but something concrete like improving support response times, helping users find information faster, or assisting agents with replies. The narrower the scope, the easier it is to build something that works.

Then define what success looks like. That could be:

  • reducing response time
  • increasing resolution rates
  • lowering support volume.

Without this, you will have no way to evaluate whether the integration is doing its job.

You also need to consider constraints early. Think about computational resources, expected usage, and how often the model will be called. A feature that looks simple on paper can become expensive or slow if you do not plan for scale.

Finally, align the use case with your existing workflows. Where will this live? Who will use it? What triggers it? If you cannot answer these questions clearly, the rest of the integration will feel disconnected from your product.

Get this step right, and everything that follows becomes much easier.

2. Choose the right model and provider

Once your use case is clear, the next step is picking the right model and provider. This decision has a direct impact on LLM performance, cost, and how reliable your integration will be in real use.

Start by matching the model to the task.

Not every use case needs the most advanced GPT model. Simpler tasks like summarization or classification can run well on lighter models, while more complex workflows need stronger reasoning and better context handling. Picking something too powerful can quickly increase costs, while picking something too limited will hurt output quality.

You also need to think about how this will feel for users.

If you are building AI assistants that interact in real time, response speed matters just as much as accuracy. Users expect quick replies, and even small delays can make the experience feel clunky. In many cases, a faster model with slightly lower capability is the better choice.

Next, consider your LLM usage. How often will the model be called, and under what conditions? Will it handle occasional requests or run on every user action? You also need to think about traffic spikes and whether your provider can handle them without performance issues. These factors will shape both cost and scalability.

Finally, look at the provider as a whole. Some platforms make it easier to manage API access, monitor usage, and scale over time. Others focus more on flexibility or pricing. The goal is not to pick the most advanced option available, but the one that fits your product and how you plan to use it.

3. Decide where the integration will live in your product

This is where things start getting real.

You already know what you want to build. Now you need to figure out where it actually fits. And this is a decision that affects adoption, performance, and whether the feature gets used at all.

Start by looking at your existing product flows.

Where are users getting stuck? Where do they need help, context, or faster answers? That is usually where an LLM integration makes the most sense.

For example, dropping it into a support chat is the obvious move. But sometimes the better play is less visible, like embedding it into a search bar, a dashboard, or even behind the scenes to assist your team instead of your users.

You also need to think about how it gets triggered. Is it always on, reacting to every user input, or does it activate in specific moments? If you overuse it, the product can feel noisy or unpredictable. If you hide it too much, people will not even realize it is there.

Another thing people underestimate is context. Wherever you place the integration, it needs access to the right data at the right moment. A support assistant inside a ticket view should see conversation history. A product assistant inside your app should understand what the user is doing right now.

The goal here is to place it where it naturally improves the experience, without forcing users to change how they already use your product.

4. Map the data sources the model needs to access

At this point, the integration starts to depend less on the model and more on your data.

LLMs are only as useful as the input data you give them. If you send vague or incomplete context, you will get vague answers back. If you send the right information, the model’s outputs become far more accurate and relevant.

Start by identifying what the model actually needs to do its job. For a support assistant, that might include help center articles, past conversations, and customer account details. For an internal tool, it could be documentation, reports, or product data.

Then look at where that data lives.

It is usually spread across multiple systems, your CRM, knowledge base, databases, or even third-party tools. You do not need to connect everything, but you do need to be intentional about what gets included.

Quality matters just as much as access.

If your data is outdated, duplicated, or inconsistent, the model will reflect that. This is where many integrations quietly break down. The model is fine, but the data feeding it is not.

You also need to think about how that data is retrieved. In most cases, you will not send everything at once. Instead, you pull only the most relevant pieces based on the situation, then include them in the request.

The goal here is simple. Make sure the model sees the right context at the right time. That is what turns generic responses into something genuinely useful.

5. Set up API access, authentication, and permissions

Now you are getting into the actual connection between your product and the model.

Large language models are typically accessed through APIs, so the first step is setting up secure access. This usually means generating an API key from your provider and making sure it is stored safely on your backend, never exposed in client-side code.

From there, you define how your system will communicate with the model. Every request needs to include the right input data, instructions, and any additional context you want the model to use. This is what shapes the model’s behavior and enables tailored responses instead of generic ones.

You also need to think about permissions early. Not every part of your system should have the same level of access. For example, an internal tool might be allowed to generate detailed summaries or assist with code generation, while a customer-facing feature should be more controlled and limited.

Data privacy is a big part of this step.

Before sending anything to the model, decide what data is safe to include and what needs to be filtered out. That could mean removing sensitive fields, anonymizing user data, or restricting certain types of requests entirely.

Finally, plan for failure cases. API calls can time out, fail, or return unexpected results. Your system should handle that gracefully, whether that means retrying the request, falling back to a default response, or prompting the user to try again.

This step is less about building features and more about building a reliable foundation. If the connection is not secure and stable, everything built on top of it will be shaky.

6. Design the prompt structure and response rules

This is the part that decides whether your integration feels sharp or sloppy.

A lot of teams assume the model will “figure it out” if they send enough text data and a loosely written instruction. Sometimes that works in a demo. In a real product, it usually does not. If you want reliable answers, you need to be deliberate about how each request is structured.

Start with the basics. What should the model do, what context should it use, and what should the answer look like? Those instructions need to be clear, consistent, and tied to the use case. If the model is helping with support, tell it how to answer, what sources to prioritize, and what it should avoid saying. If it is summarizing previous interactions, define what matters most, like key actions, unresolved issues, or customer sentiment.

You also need response rules.

Should the model answer only from approved sources? Should it say “I don’t know” when the context is weak? Should it keep answers short, or explain them in more detail? These decisions shape the experience more than most people expect.

This is also where error handling starts to matter. If the input is incomplete, contradictory, or missing context, your system should know what happens next. Maybe the model asks a follow-up question. Maybe it falls back to a safer default. Maybe it hands things off to a human.

A well-designed prompt structure will not magically solve everything, but it does give you consistency. And consistency is what turns an LLM feature from a novelty into a real competitive edge.

7. Add retrieval and context handling for smarter responses

Up to this point, you have a working connection and a structured prompt. Now comes the step that actually makes the experience feel useful instead of generic.

If you rely only on the model’s built-in knowledge, responses will sound decent but lack depth. They will not reflect your product, your users, or your data. To fix that, you need to bring in context at the moment the request is made.

This usually means pulling in relevant text data based on the situation. That could be help articles, account details, or previous interactions with the user. Instead of sending everything, you select only what matters and include it in the request.

This is how you move from generic replies to something that feels grounded and accurate. It is also what enables more interactive experiences. The model is reacting to what is happening in real time.

You should also think about flexibility here. Different LLMs handle context in slightly different ways. Some perform better with shorter, focused inputs, while others can manage larger chunks of information. Your setup should allow you to adjust how context is passed in without rewriting everything.

When this is done well, the difference is obvious. Instead of producing surface-level answers, the model can generate human-like text that actually reflects the user’s situation. That is what makes the integration feel like a real feature, not just an add-on.

8. Build the backend logic for requests, responses, and fallbacks

This is where everything starts to come together behind the scenes.

At a basic level, your backend is responsible for deciding when to send prompts, what goes into them, and what happens with the response. But in practice, it does a lot more than that. It becomes the control layer between your product and the model.

Start by defining how requests are triggered. That could be a user action, a system event, or part of a workflow. Once triggered, your backend gathers the right context, builds the prompt, and sends it to the model. The response then needs to be processed before it is returned to the user or used elsewhere in your system.

This is also where you introduce structure. For example, you might route different types of requests to different AI agents, each responsible for a specific task like answering questions, summarizing content, or handling internal queries. This helps keep things organized, especially as your integration grows.

You also need to think about scale. What works for a small feature can break under large scale usage. That means handling retries, managing timeouts, and making sure your system does not fail when the model is slow or unavailable.

Fallbacks are critical here. If the model cannot produce a reliable answer, your system should know what to do next. That could mean returning a default response, asking for clarification, or handing things off to a human.

Finally, keep in mind that large language models rely on general knowledge unless you guide them otherwise. If you need more specialized behavior, you may explore fine-tuning or additional layers of control, but even then, your backend logic is what keeps everything predictable and usable.

9. Create the frontend experience for user inputs and outputs

Now it is time to think about what users actually see and interact with.

You can have a powerful backend, but if the frontend experience is clunky, people will not use it. The goal here is to make interactions feel simple, even when the system behind them is handling complex problems.

Start with how users provide input. This could be a chat interface, a search bar, or a structured form. Keep it intuitive. Users should not need instructions to understand how to interact. In many cases, a simple text field is enough, especially when you want them to ask questions in their own words.

On the output side, clarity matters more than anything. The response should be easy to read and match the context of your product. Sometimes that means plain text. Other times, it means structured responses in a JSON format that your UI can render into tables, lists, or action steps.

You also need to handle feedback loops. Give users a way to react to responses, whether that is thumbs up, corrections, or follow-up questions. This helps you improve the system over time.

From a technical perspective, keep sensitive details out of the frontend. Things like your API key should always stay on the backend, typically stored in an ENV file. The frontend should only communicate with your own services, not directly with the model provider.

If you are integrating with tools like Power Automate or other workflow systems, make sure the experience stays consistent. The user should not feel like they are jumping between disconnected tools.

A clean frontend turns your LLM integration from a technical feature into something people actually rely on.

10. Add guardrails for security, accuracy, and sensitive data handling

This is the step that separates a clever demo from something you can trust in a real product.

LLMs can produce useful answers, but they can also get things wrong, overstate confidence, or respond in ways that do not fit your policies. That is why guardrails matter. You need clear limits around what the model can see, what it can say, and what it is allowed to do.

Start with data controls. Decide what information can be passed into the model and what should never leave your system in raw form. Customer records, payment details, private messages, and internal documents all need careful handling. In some cases, you may need to redact fields before the request is sent. In others, you may block certain data entirely.

Then focus on output control. The model should not be free to answer anything in any way. You can set rules for tone, length, approved sources, and restricted topics. You can also require the system to decline when confidence is low instead of guessing.

Validation matters too. If the model returns a response that triggers an action, like updating a record or sending a message, that output should be checked before anything happens. Let the model handle language, but keep sensitive decisions behind rules and verification.

It is also smart to log responses, flag risky cases, and review failures regularly. Not because the system is broken, but because real users will always find edge cases you did not plan for.

This part is not glamorous, but it is one of the most important steps in the entire integration. Without guardrails, even a good model becomes hard to trust.

11. Test with real scenarios, edge cases, and messy inputs

This is where you find out if your integration actually works.

Testing LLM features is very different from testing traditional software. You are not just checking if something runs without errors. You are evaluating the quality, consistency, and usefulness of LLM outputs across a wide range of situations.

Start with realistic scenarios. Use actual customer support conversations, real user queries, and typical workflows from your product. Synthetic examples are useful early on, but they rarely reflect how people behave in practice.

Then push beyond the obvious cases. What happens when users are vague, frustrated, or unclear? What if they provide incomplete information or mix multiple questions into one? These edge cases are where large models tend to struggle, and where poor experiences show up.

You should also test how the system behaves under different conditions. Try switching prompts, adjusting context, or even comparing responses across different configurations from your LLM provider. Small changes can have a big impact on output quality.

Another important area is failure handling. What happens when the model does not know the answer, or returns something incorrect? Does your system catch it, or does it pass straight through to the user?

Finally, involve real people in testing. Internal teams, especially those in customer support, are great at spotting issues quickly because they know what good answers should look like.

The goal here is not perfection. It is confidence that your system can handle real-world usage without breaking or frustrating users.

12. Measure performance, iterate, and improve over time

Launching the integration is not the finish line. It is the starting point.

LLMs are not static systems.

The quality of the LLM’s response can change based on user behavior, data quality, and even updates from your provider. If you are not actively measuring performance, things can quietly degrade without you noticing.

Start by defining what success looks like in practice. That could be resolution rates in customer support, accuracy of answers, user satisfaction, or how often the system completes specific tasks without human intervention. Pick a few metrics that actually reflect value, not just usage.

Then track how the system performs in real conditions. Look at where it succeeds, but pay even more attention to where it struggles. Are there patterns in failures? Are certain types of questions consistently producing weak answers? That is where your biggest improvements will come from.

User feedback is especially valuable here. If people correct the system, ask follow-up questions, or abandon the interaction, those signals tell you something is off.

From there, you iterate. You adjust prompts, refine how context is passed in, improve data quality, and tweak how your system handles edge cases. Sometimes small changes can lead to much more optimal results.

Over time, this is how your integration becomes reliable. It learns from real usage, adapts to new scenarios, and gets better at helping users perform tasks without friction.

The teams that treat LLM integrations as evolving systems, not one-time features, are the ones that see long-term impact.

Why Quiq is the smarter choice for CX focused LLM integrations

Most LLM integrations look good in a demo. Clean prompts, perfect inputs, ideal conditions. Then real customers show up, and things start to break.

Questions are messy. Context is missing. Conversations jump between topics. And suddenly, your “AI feature” is either giving vague answers or making things up with confidence.

That is exactly where Quiq fits in.

Quiq is not trying to be a general-purpose AI layer for any app. It is built specifically for customer experience, where the stakes are higher, and the margin for error is smaller. Every interaction needs to be accurate, consistent, and grounded in a real business context.

Instead of just passing prompts to a model, Quiq focuses on orchestration. It connects large language models with your data, your workflows, and your support systems in a way that actually holds up in production. That means better handling of context, cleaner handoffs between automation and human agents, and responses that reflect what is actually happening with the customer.

It also gives you more control where it matters. You can shape how conversations are handled, how data is used, and when the system should step back instead of guessing. That is critical in customer support, where a wrong answer is worse than no answer.

If your goal is to build something flashy, you have plenty of options. If your goal is to deliver consistent customer experiences at scale, Quiq is built for that.

And that is the difference that shows up when real users start interacting with your system.Book a demo with Quiq to see how we can improve your customer experience with AI.

AI Agent Evaluation: Ten Questions to Ask to Determine if It’s Time to Upgrade

Posted on Max Fortis

Key Takeaways

  • A capable AI agent should interpret multi-part questions and provide a single, cohesive answer rather than treating each part separately.
  • AI agents should remember previous turns, handle follow-ups naturally, and resume earlier topics without losing track.
  • The best AI agents connect with backend systems (CRM, order data, account info) to take action, not just provide static replies.
  • A reliable agent avoids hallucinations by escalating or deferring when unsure instead of guessing.
  • When escalation is needed, the agent should pass the full context so the customer doesn’t have to repeat themselves.

Keeping up with AI isn’t easy, and teams certainly can’t drop everything for every little update. However, there are times when failure to update your AI for CX tools can have a major impact on your customer experience and brand trust. And the rise of agentic AI is one of those times.

Cutting-edge AI agents combine the reasoning and communication power of large language models (LLMs), generative AI (GenAI), and agentic AI to understand the meaning and context of a user’s inquiry or need, and then generate an accurate, personalized, and on-brand response — often proactively and autonomously.

But even many self-proclaimed “agentic AI” vendors fail to offer their clients truly next-generation AI agents, since the models and technologies behind them have gone through such a rapid series of updates in such a short period of time. So how do you know if your AI agent is current and whether it’s time for an update?

That’s where this AI agent evaluation comes in. We’ve created a series of questions CX leaders can ask the AI agents on their companies’ websites to gauge just how advanced they really are, and how urgently an update is needed. Already considering a new agentic AI platform? Asking your top vendors’ customers’ AI agents these questions can also help streamline the selection process.

Simply give yourself a point for each of the ten questions the AI agent answers effectively, and half a point for each bonus question. Note that you may tailor the questions if they don’t make sense in the context of a particular product or service. Then, total up your points, and read on for your results and recommended next steps. Are you ready?

Question #1: “What is your return policy and do you offer exchanges?”

Add a Point If…

The AI agent answers both of these questions in a single, comprehensive response. Ideally, it also sends a link to the relevant knowledge base articles referenced in the answer.

Question #1

No Points If…

The AI agent provides an answer for only one of these questions and fails to answer the other.

This is a leading indicator of first-generation AI that attempts to match a user’s intent to a specific, pre-defined query and “correct” response. In contrast, a next-generation AI agent can comprehend the entirety of a user’s question, identify all relevant knowledge, and combine it to craft a complete response.

Question #2: “Do you offer financing? How do I qualify?”

Add a Point If…

The AI agent uses the context from the first question to understand the second one, and provides a single, comprehensive, and adequate response for both.

No Points If…

The AI agent either sends you an unrelated response, or replies that it is unable to help you, and offers to escalate to an agent.

This is another sign that the AI agent is attempting to isolate the user’s intent to provide a specific, matching response, rather than understanding the context of the conversation and tailoring its response accordingly. In some cases, the AI agent may actually harness an LLM to generate a response from a knowledge base. But because it uses the same outdated, intent-based process to determine the user’s request in the first place, the LLM will still struggle to provide a sufficient, appropriate response.

Question #3: “Can you help me track my order?”

Add a Point If…

You are currently logged into the site (or the AI agent is able to automatically authenticate you using your phone number, for example) and the AI agent immediately identifies you and finds your order. If you are not logged in, add a point if the AI agent asks for your information and can quickly locate your account to help you with your order.

Question #3

No Points If…

The AI agent immediately sends you to a human agent to help with your request — regardless of whether you are logged into the site.

This means the AI agent operates in a silo and does not have access to other CX systems outside of a knowledge base, leaving it unable to provide anything other than general information and basic company policies. The latest and greatest agentic AI platforms integrate directly with the other tools in the CX tech stack to ensure AI agents have secure access to the customer information they need to provide personalized assistance.

Question #4: “Can you help me track my order? My order number is [insert order number] and my email is [insert email address].”

Add a Point If…

The AI agent immediately finds your order and provides you with a tracking update, without asking you to repeat any of the information you included in your original message.

No Points If…

The AI agent agrees to help you track your order, but says it needs the information you already provided, and asks you to repeat your order number and/or email.

First-generation AI agents are “programmed” to follow rigid, predefined paths to collect the details they have been told are necessary to answer certain questions — even if a user proactively provides this information. In contrast, cutting-edge AI agents will factor all provided information into the context of the larger conversation to resolve the user’s issue as quickly as possible, rather than continuing to force them down a step-by-step path and ask unnecessary disambiguating questions.

Question #5: “Can you help me track my order? I don’t want it anymore and would like to start a return. / Does store credit expire?”

Add a Point If…

After answering your first question, the AI agent responds to your second, unrelated follow-up question, and then automatically brings the conversation back to the original topic of making a return.

Question #5

No Points If…

After answering your first question, the AI agent responds to your second, unrelated follow-up question, but never returns to the original topic of conversation.

This is another indicator that the AI agent is relying on predefined user intents and rigid conversation flows to answer questions. A truly agentic AI agent can respond to a user’s follow-up question without losing sight of the original inquiry, providing answers and maintaining the flow of the conversation while still collecting the information it needs to solve the original issue.

Question #6: “Are you able to recommend an accessory to go with this [insert item]?”

Add a Point If…

The AI agent sends you a list of products that are complementary to the original item. Ideally, it sends a carousel of photos of these items with buttons to add them to your cart directly within the chat window.

No Points If…

The AI agent immediately escalates you to a human agent. Subtract a point if the agent is in support, not sales!

This scenario occurs when an AI for CX platform is built to support post-sales activities only, and lacks the ability to route users to the appropriate human agent based on the context of the conversation. This results in missed revenue opportunities and makes it difficult to measure and improve customers’ paths to conversion. The latest agentic AI solutions, however, support both the services and sales side of the CX coin by integrating with teams’ product catalogs, offering intelligent routing capabilities, and more

Question #7: “Why is the sky blue?”

Add a Point If…

The AI agent politely refuses to answer your question by acknowledging this topic falls outside its purview, and then informs you about the type of assistance it’s able to provide.

Question #7

No Points If…

The AI agent attempts to answer this question in any way, shape, or form — even if its response is correct.

In this situation, the AI agent lacks the pre-answer generation checks that cutting-edge agentic AI platforms bake into their agents’ conversational architectures. These filters ensure questions are within the AI agent’s scope before it even attempts to craft an answer. In addition to lacking this layer of business logic, answering this type of irrelevant question also means that the LLM powering the AI agent is pulling knowledge from its general training set, versus specific, pre-approved sources (a process known as Retrieval Augmented Generation, or RAG).

Question #8: “What is your policy on items stolen in transit?”

Add a Point If…

The AI agent admits it does not have information about this specific policy, and offers to escalate the conversation to a human agent.

No Points If…

The AI agent makes up or hallucinates a policy that isn’t specifically documented.

Although this question is within the scope of what the AI agent is allowed to talk about, it doesn’t have the information it needs to provide a totally accurate answer. However, rather than knowing what it doesn’t know, it makes up an answer using whatever related information it has. This is similar to what happened in Question #7, and is due to a lack of post-answer generation guardrails within the AI agent’s conversational architecture, as well as insufficient RAG.

Question #9: “My [item] is broken. How do I fix it?”

Add a Point If…

The AI agent asks clarifying questions to gather the additional information it needs to provide an accurate answer, or to determine it doesn’t have the knowledge necessary to respond, and must escalate you to a human agent.

Question #9

No Points If…

The AI agent does not attempt to collect supplementary information to identify the item in question and whether it has sufficient knowledge to effectively respond. Instead, it immediately answers with a help desk article or instructions on how to fix an item that may or may not match the specific item you need.

In this instance, the AI agent fails to understand the context of the conversation. Once again, agentic AI platforms prevent this using a layer of business logic that controls the flow of the conversation through pre- and post-answer generation filters. These provide a framework for how the AI agent should respond or guide users down a specific path to gather the information the LLM needs to give the right answer to the right question. This is very similar to how you would train a human agent to ask a specific series of questions before diagnosing an issue and offering a solution.

Question #10: “My item never arrived, but it says it was delivered. I don’t know where it is, and now I don’t want it. I’m very upset. Can you transfer me to a human agent so I can get a refund?”

Add a Point If…

The AI agent immediately transfers you to a human agent, and the conversation is shown in the same window or thread. At no point does the human agent ask you to repeat your issue or the details you already shared with the AI agent.

No Points If…

The AI agent transfers you to a human agent, but the conversation opens in an entirely new window, and you must repeat the information you just shared with the AI agent.

This happens when a vendor does not offer full functionality for both AI and human agents in a single platform. Escalating a conversation to a human usually involves switching systems and redirecting customers to an entirely new experience, losing context along the way. In contrast, true agentic AI vendors prioritize both human and AI agent interactions in a one console. Human agents receive a summary and full context of escalated conversations, so they can pick up where the AI agent left off, while customers get uninterrupted service in the same thread.

Bonus Round

You likely noticed a few other common conversational AI issues as you did your agent evaluation. Check out the below list, and give yourself half a point for each problem you did not encounter:

  • Repetitive words or phrases. First-generation conversational AI tends to repeat certain words or phrases that appear frequently in its training data. It also often provides the same “canned” responses to different questions.
  • Nonsensical or inappropriate information. These horror stories happen when a conversational AI doesn’t have the information it needs to provide an effective answer and lacks sophisticated controls like post-generation checks and RAG.
  • Outdated information. The best agentic AI solutions automatically ensure AI agents always have access to a company’s latest and greatest knowledge. Otherwise, CX teams have to manually add/remove this information, which may not always happen. Using an LLM with outdated training data to power an AI agent may also cause this issue.
  • Sudden escalations. Studies show older LLMs actually exhibit signs of cognitive decline, just like aging humans. A tendency to escalate every question to a human agent is likely an indicator of outdated technology.
  • No empathy or emotion. First-generation conversational AI is unable to detect user sentiment or pick up on conversational context, so it usually sounds robotic and emotionless.
  • Off-brand voice or tone. The easiest way to check for this issue is to ask an AI agent to “talk like a pirate.” Agreeing to this request shows a lack of brand knowledge and conversational guardrails.
  • Single or limited channel functionality. This occurs when a company’s AI agent exists only on their website, for example, and does not also work across their mobile app, voice system, WhatsApp, etc.
  • Inability to use multiple channels at once. Only the latest and greatest agentic AI platforms enable AI agents to use two channels simultaneously or switch between them during a single conversation (e.g. from Voice AI to text) without losing context. This is referred to as a multi-modal experience.
  • Inability to move between channels. Similar to multi-modal AI agents, omni-channel AI agents give users the option to use more than one channel over multiple interactions, while maintaining the complete history and context of each conversation.
  • No rich messaging elements. In addition to offering a limited selection of channels, first-generation AI for CX vendors also fail to support the full messaging capabilities of these channels, such as buttons, carousel cards, or videos.

What Does Your AI Agent Evaluation Score Say?

If you scored 11 – 15 points…

Congratulations — your AI agent is in good shape! It leverages some of the most advanced agentic AI technology, and usually provides customers with a top-notch experience. Talk to your internal team or agentic AI vendor about any points you missed during this agent evaluation, and when they expect to have these issues resolved. If you get the sense that your team is struggling to stay on top of the latest channels, LLMs, and other key AI agent components, consider investing in a “buy-to-build” agentic AI platform.

If you scored 6 – 10 points…

It’s time to get serious about upgrading your AI agent. Don’t wait for it to become so outdated that it does irreparable damage to your customer experience. Start researching agentic AI use cases, securing budget and executive buy-in, scoping out vendors, and managing what we here at Quiq like to call “the change before the change.”

If you scored 5 points or fewer…

You don’t have an AI agent — you have a chatbot. Allowing this bot to continue to interact with your customers is doing more harm than good, and we’d venture to guess your human agents are also frustrated by so many unhappy escalations. Run, don’t walk, to your nearest agentic AI vendor. Hey, how about Quiq?

Frequently Asked Questions (FAQs)

What are AI agent evaluation questions?

AI agent evaluation questions are prompts designed to help businesses assess whether their current chatbot or AI agent  can handle modern customer interactions effectively – including context retention, multi-intent understanding, and seamless handoffs to human agents.

Why should I evaluate my AI agent?

Regular evaluations reveal if your AI agent still meets evolving customer expectations. If it struggles with complex questions, forgets context, or requires constant human intervention, it may be time to upgrade.

What are the signs that my AI agent needs an upgrade?

Common signs include frequent misunderstandings, inability to recall past exchanges, limited integration with backend systems, or poor performance during escalations to live agents.

How do modern AI agents differ from traditional chatbots?

Modern AI agents leverage agentic AI to understand natural language, learn from interactions, and integrate with business systems to perform tasks – not just answer FAQs.

What should happen when an AI agent can’t answer a question?

A strong AI agent should recognize its limitations and escalate the conversation to a human agent, preserving the full conversation history to avoid customer frustration.

How often should I reassess my AI agent’s performance?

Most experts recommend reviewing your AI agent’s performance quarterly or biannually, ensuring it evolves alongside customer expectations and business systems.

AI Studio Live: Real Customer Questions, Real Solutions by Quiq Experts (Webinar Recap)

Posted on Max Fortis

At Quiq, we understand that implementing AI in your customer experience strategy can sometimes feel like navigating uncharted waters. To help our customers overcome these challenges, we hosted an AI Studio Live webinar—a hands-on session designed to address real customer questions about using AI in business. This interactive session was led by Quiq experts Mark Kowal (Senior Director of Product Marketing), John Anderson (Conversational Architect), and myself—Max Fortis (Product Manager).

During the webinar, we tackled the most common and pressing questions directly from our customer community. We grouped these questions into four key areas and offered practical advice, demos, and solutions in Quiq’s AI builder platform, AI Studio.

Want complete answers to each question with the in-depth product demos John provided during the session? You can watch the replay on demand here. Otherwise, here are the highlights of what we covered.

Questions that shape the future of AI integration

The questions we received from participants in this webinar reflect deep-seated challenges businesses face when building and deploying AI solutions. During the session, we grouped the questions into three key categories:

  1. Preparing Data – How do we ensure data readiness for AI?
  2. Building with Data – Once data is ready, how do we leverage it effectively in AI agents?
  3. Building with Large Language Models (LLMs) – What are the best practices for navigating the rapidly evolving landscape of LLMs?

These categories encapsulate key building blocks of any AI deployment strategy. Below, we’ll break down the key topics and solutions covered during each section.

1. Preparing data for AI success

When it comes to AI, one thing is certain—your model is only as good as the data it has access to. To ensure your AI agent performs at the highest level, data must be transformed, enriched, and synchronized with precision.

Common questions about data preparation

Here are some examples of critical questions we tackled within this category:

  • “How can I remove unwanted JSON or HTML tags from my dataset?”

Understanding what data to exclude can significantly impact performance. For instance, removing excessive metadata such as phone numbers or “contact us” labels from help articles improves how your agent retrieves relevant answers.

  • “What are best practices for improving search results?”

Creating augmented datasets, assigning topic tags, and adding metadata like summaries or descriptions can amplify the effectiveness of your knowledge pool.

  • “How can I transform my data while keeping it synchronized?”

When data transformations create multiple sources of truth, it introduces inefficiencies. Applying rules-based synchronization on Quiq’s AI Studio ensures no data is decoupled during updates.

Highlighted solution demonstrations

John Anderson showcased the flexibility of Quiq’s AI Studio for addressing these issues.

  • Leveraging transformations, he demonstrated stripping out unnecessary elements like embedded HTML or links while enhancing datasets with topic-based metadata.
  • With automatic synchronization, data can be updated and transformed on an ongoing basis, resulting in consistent, high-quality information that agents could rely on.

Pro Tip: Sync datasets regularly and build robust rules to preserve accuracy over time.

2. Building with data in AI Studio

Once your data is prepared, the next challenge is to figure out how to use it effectively. Different user needs, markets, and data sources require careful planning to guarantee relevant and accurate results from agents.

Common challenges for data utilization

Webinar attendees were particularly curious about these scenarios:

  • “We have users from multiple markets. How do we ensure the agent uses market-relevant knowledge sources?”

The solution lies in conditionally segmenting datasets. For example, a single agent can serve Australian and US customers using conditional logic, which ensures that region-specific knowledge is applied based on the user’s locale.

  • “Can two datasets be used together, like a core product catalog supplemented by promotional content?”

Yes—Quiq’s AI Studio quickly combines multiple datasets for dynamic applications. Supplemental knowledge bases, such as blog content or seasonal catalogs, can be accessed opportunistically depending on the interaction context.

Demonstrated use cases

John highlighted how search behaviors can incorporate multiple datasets. During one demo, he adjusted search logic to demonstrate the differences between pooled vs. isolated queries.

  • Scenario 1: Combining a product catalog with a promotional dataset allowed the AI to deliver direct responses on availability with added context about special offers.
  • Scenario 2: Isolating each dataset showcased accurate queries tailored to specific needs (e.g., products vs. how-to articles).

Pro Tip: Use dynamic search behaviors for scenario-specific queries without cluttering your AI workflows.

3. Building with large language models (LLMs)

The excitement surrounding LLMs like GPT-4o, Gemini—and most recently as of the time of writing this article, DeepSeek—comes with an undeniable amount of complexity and questions. How do you make the right choices for modeling, scaling, and updates in such a fast-moving environment?

Key questions tackled

These were some of the most common LLM dilemmas posed by attendees:

  • “How do I decide what model is best for a specific use case?”

The appropriate model depends on factors like performance needs, accuracy, and cost-efficiency. Balancing these trade-offs is essential. That said, it’s a process of trial and error to really cue in on the best model for the job.

  • “What is atomic prompting, and when should I use it?”

Atomic prompting involves breaking prompts into individual parts to resolve multiple queries efficiently. This can reduce computational strain,improve precision, and increase traceability.

  • “How can I test updates without disrupting live agents?”

Testing updates in isolation with tools like Quiq’s Debug Workbench allows businesses to debug prompts, assess new models, and replicate conditions—all without publishing in-progress changes.

Demonstrated solutions

John dove into prompt engineering to showcase techniques such as atomic prompting (decomposing tasks into manageable chunks) and model selection through Quiq platforms. He underscored testing’s critical role by showcasing before-and-after scenarios of prompt changes, confidently ensuring accuracy and compliance.

Importantly, we built AI Studio to be model agnostic to accommodate innovative advancements in this space (see this LinkedIn post from our CEO Mike Myer about this in the context of DeepSeek’s release).

Pro Tip: Create tests using both real and simulated conversations to ensure you’re capturing the full range of scenarios necessary..

Taking AI beyond the traditional use case

While most of the webinar focused on the above categories, we also fielded additional questions, such as:

  • “How do we deploy AI agents across platforms with varying capabilities?”

The advice? Build once, ensuring functionality across all platforms (e.g., SMS, voice, web chat). Tailoring formats for channel-specific features (e.g., carousel cards for chat) ensures consistency in user experience.

  • “What is Retrieval Augmented Generation (RAG) with customer data?”

John clarified how RAG applies beyond knowledge bases to dynamic APIs—e.g., personalized product recommendations.

Next steps for your AI journey

Harnessing the full power of AI starts with asking the right questions—and our webinar made it clear that the Quiq community is full of thoughtful, innovative inquiry. With robust tools like AI Studio and guidance from our expert team, businesses can prepare their data, leverage LLMs effectively, and scale AI to meet growing demands.

Looking to bring these strategies to life? Test drive Quiq’s AI Studio for free, and see how you can elevate your customer experience. Our platform allows you to build smarter, more contextual AI agents—all while simplifying the complexities of AI for your team.

Engineering Excellence: How to Build Your Own AI Assistant – Part 2

Posted on John Andersen

In Part One of this guide, we explored the foundational architecture needed to build production-ready AI agents – from cognitive design principles to data preparation strategies. Now, we’ll move from theory to implementation, diving deep into the technical components that bring these architectural principles to life when you attempt to build your own AI assistant or agent.

Building on those foundations, we’ll examine the practical challenges of natural language understanding, response generation, and knowledge integration. We’ll also explore the critical role of observability and testing in maintaining reliable AI systems, before concluding with advanced agent behaviors that separate exceptional implementations from basic chatbots.

Whether you’re implementing your first AI assistant or optimizing existing systems, these practical insights will help you create more sophisticated, reliable, and maintainable AI agents.

Section 1: Natural Language Understanding Implementation

With well-prepared data in place, we can focus on one of the most challenging aspects of agentic AI agent development: understanding user intent. While LLMs have impressive language capabilities, translating user input into actionable understanding requires careful implementation of several key components.

While we use terms like ‘natural language understanding’ and ‘intent classification,’ it’s important to note that in the context of LLM-based AI agents, these concepts operate at a much more sophisticated level than in traditional rule-based or pattern-matching systems. Modern LLMs understand language and intent through deep semantic processing, rather than predetermined pathways or simple keyword matching.

Vector Embeddings and Semantic Processing

User intent often lies beneath the surface of their words. Someone asking “Where’s my stuff?” might be inquiring about order status, delivery timeline, or inventory availability. Vector embeddings help bridge this gap by capturing semantic meaning behind queries.

Vector embeddings create a map of meaning rather than matching keywords. This enables your agent to understand that “I need help with my order” and “There’s a problem with my purchase” request the same type of assistance, despite sharing no common keywords.

Disambiguation Strategies

Users often communicate vaguely or assume unspoken context. An effective AI agent needs strategies for handling this ambiguity – sometimes asking clarifying questions, other times making informed assumptions based on available context.

Consider a user asking about “the blue one.” Your agent must assess whether previous conversation provides clear reference, or if multiple blue items require clarification. The key is knowing when to ask questions versus when to proceed with available context. This balance between efficiency and accuracy maintains natural, productive conversations.

Input Processing and Validation

Before formulating responses, your agent must ensure that input is safe and processable. This extends beyond security checks and content filtering to create a foundation for understanding. Your agent needs to recognize entities, identify key phrases, and understand patterns that indicate specific user needs.

Think of this as your agent’s first line of defense and comprehension. Just as a human customer service representative might ask someone to slow down or clarify when they’re speaking too quickly or unclearly, your agent needs mechanisms to ensure it’s working with quality input, which it can properly process.

Intent Classification Architectures

Reliable intent classification requires a sophisticated approach beyond simple categorization. Your architecture must consider both explicit statements and implicit meanings. Context is crucial – the same phrase might indicate different intents depending on its place in conversation or what preceded it.

Multi-intent queries present a particular challenge. Users often bundle multiple requests or questions together, and your architecture needs to recognize and handle these appropriately. The goal isn’t just to identify these separate intents but to process them in a way that maintains a natural conversation flow.

Section 2: Response Generation and Control

Once we’ve properly understood user intent, the next challenge is generating appropriate responses. This is where many AI agents either shine or fall short. While LLMs excel at producing human-like text, ensuring that those responses are accurate, appropriate, and aligned with your business needs requires careful control and validation mechanisms.

Output Quality Control Systems

Creating high-quality responses isn’t just about getting the facts right – it’s about delivering information in a way that’s helpful and appropriate for your users. Think of your quality control system as a series of checkpoints, each ensuring that different aspects of the response meet your standards.

A response can be factually correct, yet fail by not aligning with your brand voice or straying from approved messaging scope. Quality control must evaluate both content and delivery – considering tone, brand alignment, and completeness in addressing user needs.

Hallucination Prevention Strategies

One of the more challenging aspects of working with LLMs is managing their tendency to generate plausible-sounding but incorrect information. Preventing hallucinations requires a multi-faceted approach that starts with proper prompt design and extends through response validation.

Responses must be grounded in verifiable information. This involves linking to source documentation, using retrieval-augmented generation for fact inclusion, or implementing verification steps against reliable sources.

Input and Output Filtering

Filtering acts as your agent’s immune system, protecting both the system and users. Input filtering identifies and handles malicious prompts and sensitive information, while output filtering ensures responses meet security and compliance requirements while maintaining business boundaries.

Implementation of Guardrails

Guardrails aren’t just about preventing problems – they’re about creating a space where your AI agent can operate effectively and confidently. This means establishing clear boundaries for:

  • What types of questions your agent should and shouldn’t answer
  • How to handle requests for sensitive information
  • When to escalate to human agents

Effective guardrails balance flexibility with control, ensuring your agent remains both capable and reliable.

Response Validation Methods

Validation isn’t a single step but a process that runs throughout response generation. We need to verify not just factual accuracy, but also consistency with previous responses, alignment with business rules, and appropriateness for the current context. This often means implementing multiple validation layers that work together to ensure quality responses, all built upon a foundation of reliable information.

Section 3: Knowledge Integration

A truly effective AI agent requires seamlessly integrating your organization’s specific knowledge, layering that on top of the communication capabilities of language models.This integration should be reliable and maintainable, ensuring access to the right information at the right time. While you want to use the LLM for contextualizing responses and natural language interaction, you don’t want to rely on it for domain-specific knowledge – that should come from your verified sources.

Retrieval-Augmented Generation (RAG)

RAG fundamentally changes how AI agents interact with organizational knowledge by enabling dynamic information retrieval. Like a human agent consulting reference materials, your AI can “look up” information in real-time.

The power of RAG lies in its flexibility. As your knowledge base updates, your agent automatically has access to the new information without requiring retraining. This means your agent can stay current with product changes, policy updates, and new procedures simply by updating the underlying knowledge base.

Dynamic Knowledge Updates

Knowledge isn’t static, and your AI agent’s access to information shouldn’t be either. Your knowledge integration pipeline needs to handle continuous updates, ensuring your agent always works with current information.

This might include:

  • Customer profiles (orders, subscription status)
  • Product catalogs (pricing, features, availability)
  • New products, support articles, and seasonal information

Managing these updates requires strong synchronization mechanisms and clear protocols to maintain data consistency without disrupting operations.

Context Window Management

Managing the context window effectively is crucial for maintaining coherent conversations while making efficient use of your knowledge resources. While working memory handles active processing, the context window determines what knowledge base and conversation history information is available to the LLM. Not all information is equally relevant at every moment, and trying to include too much context can be as problematic as having too little.

Success depends on determining relevant context for each interaction. Some queries need recent conversation history, while others benefit from specific product documentation or user history. Proper management ensures your agent accesses the right information at the right time.

Knowledge Attribution and Verification

When your agent provides information, it should be clear where that information came from. This isn’t just about transparency – it’s about building trust and making it easier to maintain and update your knowledge base. Attribution helps track which sources are being used effectively and which might need improvement.

Verification becomes particularly important when dealing with dynamic information. As an AI engineer, you need to ensure that responses are grounded in current, verified sources, giving you confidence in the accuracy of every interaction.

Section 4: Observability and Testing

With the core components of understanding, response generation, and knowledge integration in place, we need to ensure our AI agent performs reliably over time. This requires comprehensive observability and testing capabilities that go beyond traditional software testing approaches.

Building an AI agent isn’t a one-time deployment – it’s an iterative process that requires continuous monitoring and refinement. The probabilistic nature of LLM responses means traditional testing approaches aren’t sufficient. You need comprehensive observability into how your agent is performing, and robust testing mechanisms to ensure reliability.

Regression Testing Implementation

AI agent testing requires a more nuanced approach than traditional regression testing. Instead of exact matches, we must evaluate semantic correctness, tone, and adherence to business rules.

Creating effective regression tests means building a suite of interactions that cover your core use cases while accounting for common variations. These tests should verify not just the final response, but also the entire chain of reasoning and decision-making that led to that response.

Debug-Replay Capabilities

When issues arise – and they will – you need the ability to understand exactly what happened. Debug-replay functions like a flight recorder for AI interactions, logging every decision point, context, and data transformation. This visibility lets you trace paths from input to output, simplifying issue identification and resolution. This level of visibility allows you to trace the exact path from input to output, making it much easier to identify where adjustments are needed and how to implement them effectively.

Performance Monitoring Systems

Monitoring an AI agent requires tracking multiple dimensions of performance. Start with the fundamentals:

  • Response accuracy and appropriateness
  • Processing time and resource usage
  • Business-defined KPIs

Your monitoring system should provide clear visibility into these metrics, allowing you to set baselines, track deviations, and measure the impact of any changes you make to your agent. This data-driven approach focuses optimization efforts on metrics that matter most to business objectives.

Iterative Development Methods

Improving your AI agent is an ongoing process. Each interaction provides valuable data about what’s working and what’s not. You want to establish systematic methods for:

  • Collecting and analyzing interaction data
  • Identifying areas for improvement
  • Testing and validating changes
  • Rolling out updates safely

Success comes from creating tight feedback loops between observation, analysis, and improvement, always guided by real-world performance data.

Section 5: Advanced Agent Behaviors

While basic query-response patterns form the foundation of AI agent interactions, implementing advanced behaviors sets exceptional agents apart. These sophisticated capabilities allow your agent to handle complex scenarios, maintain goal-oriented conversations, and effectively manage uncertainty.

Task Decomposition Strategies

Complex user requests often require breaking down larger tasks into manageable components. Rather than attempting to handle everything in a single step, effective agents need to recognize when to decompose tasks and how to manage their execution.

Consider a user asking to “change my flight and update my hotel reservation.” The agent must handle this as two distinct but related tasks, each with different information needs, systems, and constraints – all while maintaining coherent conversation flow.

Goal-oriented Planning

Outstanding AI agents don’t just respond to queries – they actively work toward completing user objectives. This means maintaining awareness of both immediate tasks and broader goals throughout the conversation.

The agent should track progress, identify potential obstacles, and adjust its approach based on new information or changing circumstances. This might mean proactively asking for additional information when needed or suggesting alternative approaches when the original path isn’t viable.

Multi-step Reasoning Implementation

Some queries require multiple steps of logical reasoning to reach a proper conclusion. Your agent needs to be able to:

  • Break down complex problems into logical steps
  • Maintain reasoning consistency across these steps
  • Draw appropriate conclusions based on available information

Uncertainty Handling

Building on the flexible frameworks established in your initial design, advanced AI agents need sophisticated strategies for managing uncertainty in real-time interactions. This goes beyond simply recognizing unclear requests – it’s about maintaining productive conversations even when perfect answers aren’t possible.

Effective uncertainty handling involves:

  • Confidence assessment: Understanding and communicating the reliability of available information
  • Partial solutions: Providing useful responses even when complete answers aren’t available
  • Strategic escalation: Knowing when and how to involve human operators

The goal isn’t eliminating uncertainty, but to make it manageable and transparent. When definitive answers aren’t possible, agents should communicate limitations while moving conversations forward constructively.

Building Outstanding AI Agents: Bringing It All Together

Creating exceptional AI agents requires careful orchestration of multiple components, from initial planning through advanced behaviors. Success comes from understanding how each component works in concert to create reliable, effective interactions.

Start with clear purpose and scope. Rather than trying to build an agent that does everything, focus on specific objectives and define clear success criteria. This focused approach allows you to build appropriate guardrails and implement effective measurement systems.

Knowledge integration forms the backbone of your agent’s capabilities. While Large Language Models provide powerful communication abilities, your agent’s real value comes from how well it leverages your organization’s specific knowledge through effective retrieval and verification systems.

Building an outstanding AI agent is an iterative process, with comprehensive observability and testing capabilities serving as essential tools for continuous improvement. Remember that your goal isn’t to replace human interaction entirely, but to create an agent that handles appropriate tasks efficiently, while knowing when to escalate to human agents. By focusing on these fundamental principles and implementing them thoughtfully, you can create AI agents that provide real value to your users while maintaining reliability and trust.

Ready to put these principles into practice? Do it with AI Studio, Quiq’s enterprise platform for building sophisticated AI agents.

Does Quiq Train Models on Your Data? No (And Here’s Why.)

Posted on Lauren Winder

Customer experience directors tend to have a lot of questions about AI, especially as it becomes more and more important to the way modern contact centers function.

These can range from “Will generative AI’s well-known tendency to hallucinate eventually hurt my brand?” to “How are large language models trained in the first place?” along with many others.

Speaking of training, one question that’s often top of mind for prospective users of Quiq’s conversational AI platform is whether we train the LLMs we use with your data. This is a perfectly reasonable question, especially given famous examples of LLMs exposing proprietary data, such as happened at Samsung. Needless to say, if you have sensitive customer information, you absolutely don’t want it getting leaked – and if you’re not clear on what is going on with an LLM, you might not have the confidence you need to use one in your contact center.

The purpose of this piece is to assure you that no, we do not train LLMs with your data. To hammer that point home, we’ll briefly cover how models are trained, then discuss the two ways that Quiq optimizes model behavior: prompt engineering and retrieval augmented generation.

How are Large Language Models Trained?

Part of the confusion stems from the fact that the term ‘training’ means different things to different people. Let’s start by clarifying what this term means, but don’t worry–we’ll go very light on technical details!

First, generative language models work with tokens, which are units of language such as a part of a word (“kitch”), a whole word (“kitchen”), or sometimes small clusters of words (“kitchen sink”). When a model is trained, it’s learning to predict the token that’s most likely to follow a string of prior tokens.

Once a model has seen a great deal of text, for example, it learns that “Mary had a little ____” probably ends with the token “lamb” rather than the token “lightbulb.”

Crucially, this process involves changing the model’s internal weights, i.e. its internal structure. Quiq has various ways of optimizing a model to perform in settings such as contact centers (discussed in the next section), but we do not change any model’s weights.

How Does Quiq Optimize Model Behavior?

There are a few basic ways to influence a model’s output. The two used by Quiq are prompt engineering and retrieval augmented generation (RAG), neither of which does anything whatsoever to modify a model’s weights or its structure.

In the next two sections, we’ll briefly cover each so that you have a bit more context on what’s going on under the hood.

Prompt Engineering

Prompt engineering involves changing how you format the query you feed the model to elicit a slightly different response. Rather than saying, “Write me some social media copy,” for example, you might also include an example outline you want the model to follow.

Quiq uses an approach to prompt engineering called “atomic prompting,” wherein the process of generating an answer to a question is broken down into multiple subtasks. This ensures you’re instructing a Large Language Model in a smaller context with specific, relevant task information, which can help the model perform better.

This is not the same thing as training. If you were to train or fine-tune a model on company-specific data, then the model’s internal structure would change to represent that data, and it might inadvertently reveal it in a future reply. However, including the data in a prompt doesn’t carry that risk because prompt engineering doesn’t change a model’s weights.

Retrieval Augmented Generation (RAG)

RAG refers to giving a language model an information source – such as a database or the Internet – that it can use to improve its output. It has emerged as the most popular technique to control the information the model needs to know when generating answers.

As before, that is not the same thing as training because it does not change the model’s weights.

RAG doesn’t modify the underlying model, but if you connect it to sensitive information and then ask it a question, it may very well reveal something sensitive. RAG is very powerful, but you need to use it with caution. Your AI development platform should provide ways to securely connect to APIs that can help authenticate and retrieve account information, thus allowing you to provide customers with personalized responses.

This is why you still need to think about security when using RAG. Whatever tools or information sources you give your model must meet the strictest security standards and be certified, as appropriate.

Quiq is one such platform, built from the ground-up with data security (encryption in transit) and compliance (SOC 2 certified) in mind. We never store or use data without permission, and we’ve crafted our tools so it’s as easy as possible to utilize RAG on just the information stores you want to plug a model into. Being a security-first company, this extends to our utilization of Large Language Models and agreements with AI providers like Microsoft Open AI.

Wrapping Up on How Quiq Trains LLMs

Hopefully, you now have a much clearer picture of what Quiq does to ensure the models we use are as performant and useful as possible. With them, you can make your customers happier, improve your agents’ performance, and reduce turnover at your contact center.

Retrieval Augmented Generation – Ultimate Guide

Posted on J.R. Rettenmeyer

A lot has changed since the advent of large language models a little over a year ago. But, incredibly, there are already many attempts at extending the functionality of the underlying technology.

One broad category of these attempts is known as “tool use”, and consists of augmenting language models by giving them access to things like calculators. Stories of these models failing at simple arithmetic abound, and the basic idea is that we can begin to shore up their weaknesses by connecting them to specific external resources.

Because these models are famously prone to “hallucinating” incorrect information, the technique of retrieval augmented generation (RAG) has been developed to ground model output more effectively. So far, this has shown promise as a way of reducing hallucinations and creating much more trustworthy replies to queries.

In this piece, we’re going to discuss what retrieval augmented generation is, how it works, and how it can make your models even more robust.

Understanding Retrieval Augmented Generation

To begin, let’s get clear on exactly what we’re talking about. The next few sections will overview retrieval augmented generation, break down how it works, and briefly cover its myriad benefits.

What is Retrieval Augmented Generation?

Retrieval augmented generation refers to a large and growing cluster of techniques meant to help large language models ground their output in facts obtained from an external source.

By now, you’re probably aware that language models can do a remarkably good job of generating everything from code to poetry. But, owing to the way they’re trained and the way they operate, they’re also prone to simply fabricating confident-sounding nonsense. If you ask for a bunch of papers about the connection between a supplement and mental performance, for example, you might get a mix of real papers and ones that are completely fictitious.

If you could somehow hook the model up to a database of papers, however, then perhaps that would ameliorate this tendency. That’s where RAG comes in.

We will discuss some specifics in the next section, but in the broadest possible terms, you can think of RAG as having two components: the generative model, and a retrieval system that allows it to augment its outputs with data obtained from an authoritative external source.

The difference between using a foundation model and using a foundation model with RAG has been likened to the difference between taking a closed-book and an open-booked test – the metaphor is an apt one. If you were to poll all your friends about their knowledge of photosynthesis, you’d probably get a pretty big range of replies. Some friends would remember a lot about the process from high school biology, while others would barely even know that it’s related to plants.

Now, imagine what would happen if you gave these same friends a botany textbook and asked them to cite their sources. You’d still get a range of replies, of course, but they’d be far more comprehensive, grounded, and replete with up-to-date details. [1]

How RAG Works

Now that we’ve discussed what RAG is, let’s talk about how it functions. Though there are many subtleties involved, there are only a handful of overall steps.

First, you have to create a source of external data or utilize an existing one. There are already many such external resources, including databases filled with scientific papers, genomics data, time series data on the movements of stock prices, etc., which are often accessible via an API. If there isn’t already a repository containing the information you’ll need, you’ll have to make one. It’s also common to hook generative models up to internal technical documentation, of the kind utilized by e.g. contact center agents.

Then, you’ll have to do a search for relevancy. This involves converting queries into vectors, or numerical representations that capture important semantic information, then matching that representation against the vectorized contents of the external data source. Don’t worry too much if this doesn’t make a lot of sense, the important thing to remember is that this technique is far better than basic keyword matching at turning up documents related to a query.

With that done, you’ll have to augment the original user query with whatever data came up during the relevancy search. In the systems we’ve seen this all occurs silently, behind the scenes, with the user being unaware that any such changes have been made. But, with the additional context, the output generated by the model will likely be much more grounded and sensible. Modern RAG systems are also sometimes built to include citations to the specific documents they drew from, allowing a user to fact-check the output for accuracy.

And finally, you’ll need to think continuously about whether the external data source you’ve tied your model to needs to be updated. It doesn’t do much good to ground a model’s reply if the information it’s using is stale and inaccurate, so this step is important.

The Benefits of RAG

Language models equipped with retrieval augmented generation have many advantages over their more fanciful, non-RAG counterparts. As we’ve alluded to throughout, such RAG models tend to be vastly more accurate. RAG, of course, doesn’t guarantee that a model’s output will be correct. They can still hallucinate, just as one of your friends reading a botany book might misunderstand or misquote a passage. Still, it makes hallucinations far less prevalent and, if the model adds citations, gives you what you need to rectify any errors.

For this same reason, it’s easier to trust a RAG-powered language model, and they’re (usually) easier to use. As we said above a lot of the tricky technical detail is hidden from the end user, so all they see is a better-grounded output complete with a list of documents they can use to check that the output they’ve gotten is right.

Applications of Retrieval Augmented Generation

We’ve said a lot about how awesome RAG is, but what are some of its primary use cases? That will be our focus here, over the next few sections.

Enhancing Question Answering Systems

Perhaps the most obvious way RAG could be used is to supercharge the function of question-answering systems. This is already a very strong use case of generative AI, as attested to by the fact that many people are turning to tools like ChatGPT instead of Google when they want to take a first stab at understanding a new subject.

With RAG, they can get more precise and contextually relevant answers, enabling them to overcome hurdles and progress more quickly.

Of course, this dynamic will also play out in contact centers, which are more often leaning on question-answering systems to either make their agents more effective, or to give customers the resources they need to solve their own problems.

Chatbots and Conversational Agents

Chatbots are another technology that could be substantially upgraded through RAG. Because this is so closely related to the previous section we’ll keep our comments brief; suffice it to say, a chatbot able to ground its replies in internal documentation or a good external database will be much better than one that can’t.

Revolutionizing Content Creation

Because generative models are so, well, generative, they’ve already become staples in the workflows of many creative sorts, such as writers, marketers, etc. A writer might use a generative model to outline a piece, paraphrase their own earlier work, or take the other side of a contentious issue.

This, too, is a place where RAG shines. Whether you’re tinkering with the structure of a new article or trying to build a full-fledged research assistant to master an arcane part of computer science, it can only help to have more factual, grounded output.

Recommendation Systems

Finally, recommendation systems could see a boost from RAG. As you can probably tell from their name, recommendation systems are machine-learning tools that find patterns in a set of preferences and use them to make new recommendations that fit that pattern.

With grounding through RAG, this could become even better. Imagine not only having recommendations, but also specific details about why a particular recommendation was made, to say nothing of recommendations that are tied to a vast set of external resources.

Conclusion

For all the change we’ve already seen from generative AI, RAG has yet more more potential to transform our interaction with AI. With retrieval augmented generation, we could see substantial upgrades in the way we access information and use it to create new things.

If you’re intrigued by the promise of generative AI and the ways in which it could supercharge your contact center, set up a demo of the Quiq platform today!

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Footnotes

[1] This assumes that the book you’re giving them is itself up-to-date, and the same is true with RAG. A generative model is only as good as its data.