What gets measured gets managed. But with AI systems, it's easy to measure the wrong things—or so many things that nothing gets attention.
Effective AI monitoring requires a focused set of KPIs that balance technical health, model performance, business outcomes, and responsible AI considerations. This guide provides a comprehensive metrics catalog organized by category, with guidance on what to measure, how to measure it, and what targets to set.
Executive Summary
- Four metric categories create complete AI monitoring: Operational, Performance, Data, and Business/Ethical
- Fewer metrics done well beats many metrics tracked poorly
- Thresholds should trigger action, not just record observations
- Different stakeholders need different metrics: Dashboards should be audience-appropriate
- Metrics should connect to outcomes: Track what matters to the business
- Regular review and refinement: Adjust metrics as you learn what matters
AI Metrics Framework
The Four Pillars
Four pillars of AI monitoring: Business/Ethical outcomes drive Performance, Data, and Operational metrics.
Pillar 1: Operational Metrics
Purpose: Ensure AI systems are available, responsive, and healthy
Essential Metrics
| Metric | Definition | How to Measure | Suggested Threshold |
|---|---|---|---|
| Availability | % of time system is operational | Uptime / Total time | >99.9% critical, >99.5% standard |
| Latency (p50) | Median response time | Percentile calculation | <100ms for real-time |
| Latency (p99) | 99th percentile response time | Percentile calculation | <500ms for real-time |
| Error Rate | % of requests with errors | Errors / Total requests | <1% critical, <5% standard |
| Throughput | Requests processed per time unit | Count per second/minute | Based on capacity planning |
Infrastructure Metrics
| Metric | Definition | How to Measure | Suggested Threshold |
|---|---|---|---|
| CPU Utilization | Processing capacity used | System monitoring | <80% sustained |
| Memory Utilization | RAM capacity used | System monitoring | <85% |
| GPU Utilization | GPU capacity used (if applicable) | System monitoring | <90% |
| Queue Depth | Pending requests waiting | Queue monitoring | <10 sustained |
| Dependency Health | Status of upstream/downstream systems | Health checks | All healthy |
Pillar 2: Performance Metrics
Purpose: Ensure AI models produce accurate, reliable predictions
Classification Metrics
| Metric | Definition | When to Use | Formula |
|---|---|---|---|
| Accuracy | Overall correctness | Balanced datasets | (TP+TN)/(TP+TN+FP+FN) |
| Precision | Positive prediction correctness | When false positives costly | TP/(TP+FP) |
| Recall | True positive coverage | When false negatives costly | TP/(TP+FN) |
| F1 Score | Harmonic mean of precision/recall | General classification | 2×(P×R)/(P+R) |
| AUC-ROC | Discrimination ability | Binary classification | Area under ROC curve |
Regression Metrics
| Metric | Definition | When to Use |
|---|---|---|
| RMSE | Root mean squared error | General regression |
| MAE | Mean absolute error | Interpretable error |
| MAPE | Mean absolute percentage error | Relative error |
| R² | Variance explained | Model fit quality |
Generative AI Metrics
| Metric | Definition | When to Use |
|---|---|---|
| Hallucination Rate | Factually incorrect generation | Fact-dependent outputs |
| Relevance Score | Output alignment to request | RAG systems |
| Coherence Score | Output logical consistency | Text generation |
| User Acceptance | Outputs accepted without edit | Practical utility |
| Safety Filter Triggers | Content policy violations | Content safety |
Model Health Metrics
| Metric | Definition | How to Measure | Threshold |
|---|---|---|---|
| Prediction Distribution | Spread of model outputs | Output histogram | Stable over time |
| Confidence Distribution | Certainty of predictions | Confidence histogram | No drift toward extremes |
| Model Staleness | Time since last update | Date tracking | Based on drift rate |
Pillar 3: Data Metrics
Purpose: Ensure data quality and detect drift
Data Quality Metrics
| Metric | Definition | How to Measure | Threshold |
|---|---|---|---|
| Missing Value Rate | % of null/missing values | Count / Total | <5% per feature |
| Out-of-Range Rate | % outside expected bounds | Count / Total | <1% |
| Format Error Rate | % with format violations | Validation check | <0.1% |
| Duplicate Rate | % duplicate records | Deduplication check | Context-dependent |
| Freshness | Data age | Timestamp comparison | Based on use case |
Drift Metrics
| Metric | Definition | How to Measure | Threshold |
|---|---|---|---|
| PSI (Population Stability Index) | Distribution shift magnitude | Statistical comparison | <0.25 |
| KS Statistic | Maximum distribution difference | Kolmogorov-Smirnov test | <0.1 |
| Feature Drift Score | Per-feature shift measure | Feature-level PSI | Alert on multiple features |
| Concept Drift Indicator | Performance/data divergence | Correlation tracking | Model-specific |
Volume Metrics
| Metric | Definition | How to Measure | Threshold |
|---|---|---|---|
| Input Volume | Records processed | Count | Within expected range |
| Volume Variance | Deviation from expected | % difference | <20% unless explained |
| Peak Load | Maximum concurrent requests | Monitoring | Within capacity |
Pillar 4: Business and Ethical Metrics
Purpose: Ensure AI delivers business value and operates responsibly
Business Outcome Metrics
| Metric | Definition | How to Measure |
|---|---|---|
| Business KPI Impact | Effect on core business metrics | Before/after comparison |
| Conversion Rate | Desired actions taken | Actions / Opportunities |
| ROI | Return on AI investment | Value / Cost |
| Time Saved | Efficiency gains | Process time reduction |
| Cost Reduction | Expense savings | Cost comparison |
User Experience Metrics
| Metric | Definition | How to Measure |
|---|---|---|
| User Satisfaction | User happiness with AI | Surveys, ratings |
| Override Rate | Human corrections to AI | Overrides / Predictions |
| Escalation Rate | Cases requiring human intervention | Escalations / Total |
| Adoption Rate | % of users using AI features | Users / Total available |
Fairness Metrics
| Metric | Definition | How to Measure | Threshold |
|---|---|---|---|
| Demographic Parity | Outcomes equal across groups | Outcome rate by group | <10% difference |
| Equal Opportunity | True positive rates equal | TPR by group | <10% difference |
| Predictive Parity | Precision equal across groups | Precision by group | <10% difference |
| Individual Fairness | Similar individuals treated similarly | Similarity analysis | Context-dependent |
Compliance Metrics
| Metric | Definition | How to Measure |
|---|---|---|
| Policy Violations | Instances violating AI policy | Audit findings |
| Data Handling Compliance | Adherence to data rules | Compliance checks |
| Explainability Coverage | % of decisions explainable | Documentation review |
| Audit Trail Completeness | Required records maintained | Audit review |
Metrics by Audience
Executive Dashboard
| Metric | Why Executives Care |
|---|---|
| Business outcome KPIs | Direct value impact |
| AI ROI | Investment justification |
| Incident count | Risk indicator |
| User satisfaction | Adoption health |
| Compliance status | Risk indicator |
Operations Dashboard
| Metric | Why Operations Cares |
|---|---|
| Availability | Service health |
| Latency (p50, p99) | Performance |
| Error rate | Issue indicator |
| Resource utilization | Capacity planning |
| Queue depth | Backlog indicator |
AI/ML Team Dashboard
| Metric | Why AI Team Cares |
|---|---|
| Model performance metrics | Model health |
| Drift indicators | Degradation warning |
| Data quality metrics | Input health |
| Prediction distributions | Model behavior |
| Feature importance stability | Model stability |
Risk/Compliance Dashboard
| Metric | Why Risk/Compliance Cares |
|---|---|
| Fairness metrics | Bias risk |
| Incident volume and severity | Risk profile |
| Policy violation count | Compliance status |
| Audit trail completeness | Regulatory readiness |
| Override rate | AI reliability |
Sample KPI Dashboard Structure
┌─────────────────────────────────────────────────────────────┐
│ AI SYSTEM HEALTH │
├──────────────┬──────────────┬──────────────┬───────────────┤
│ Availability│ Latency │ Error Rate │ Performance │
│ 99.98% │ 45ms p50 │ 0.3% │ 92% acc │
│ ✓ │ ✓ │ ✓ │ ✓ │
├──────────────┴──────────────┴──────────────┴───────────────┤
│ DATA HEALTH │
├──────────────┬──────────────┬──────────────┬───────────────┤
│ Data Quality │ Data Drift │ Volume │ Freshness │
│ 98.5% │ PSI 0.08 │ +5% │ Current │
│ ✓ │ ✓ │ ✓ │ ✓ │
├──────────────┴──────────────┴──────────────┴───────────────┤
│ BUSINESS IMPACT │
├──────────────┬──────────────┬──────────────┬───────────────┤
│ Conversion │ User Satis. │ Override Rate│ ROI │
│ +12% │ 4.3/5 │ 8% │ 215% │
│ ✓ │ ✓ │ ✓ │ ✓ │
├──────────────┴──────────────┴──────────────┴───────────────┤
│ RESPONSIBLE AI │
├──────────────┬──────────────┬──────────────┬───────────────┤
│ Fairness │ Policy Viols │ Incidents │ Compliance │
│ <5% gap │ 0 │ 2/mo │ 100% │
│ ✓ │ ✓ │ ⚠ │ ✓ │
└──────────────┴──────────────┴──────────────┴───────────────┘
Implementation Checklist
Phase 1: Essential Metrics
- Identify critical AI systems
- Implement operational metrics (availability, latency, errors)
- Implement core performance metrics
- Set thresholds and alerting
- Create basic dashboard
Phase 2: Comprehensive Coverage
- Add data quality metrics
- Implement drift monitoring
- Add business outcome tracking
- Implement fairness metrics
- Create audience-specific dashboards
Phase 3: Optimization
- Tune thresholds based on experience
- Correlate metrics to outcomes
- Automate reporting
- Regular metric review and refinement
Frequently Asked Questions
How many metrics should we track?
Start with 5-10 essential metrics per AI system. Expand based on actual needs. More metrics isn't better—focus and action are.
How often should metrics be updated?
Operational metrics: Real-time or near-real-time. Performance metrics: Daily minimum. Business metrics: Weekly or monthly depending on cycle.
What if we can't measure ground truth?
Use proxy metrics: user behavior, override rates, downstream system performance. Implement feedback loops to capture labels over time.
How do we set appropriate thresholds?
Start with industry benchmarks or conservative estimates. Tune based on your system's actual behavior and business impact. Regular review is essential.
Should we track the same metrics across all AI systems?
Use a consistent framework, but expect variations. Some metrics (fairness) are critical for some systems (hiring) and less relevant for others (document classification).
Taking Action
Metrics are only valuable if they drive action. Build monitoring that creates visibility, dashboards that focus attention, and thresholds that trigger response.
Start with essential metrics. Ensure they're reliably collected and actively reviewed. Then expand based on what you learn about your AI systems.
Ready to build comprehensive AI monitoring?
Pertama Partners helps organizations design AI monitoring frameworks with the right metrics for their systems. Our AI Readiness Audit includes monitoring assessment and design.
References
- Google. (2024). Monitoring Machine Learning Models in Production.
- AWS. (2024). Best Practices for ML Model Monitoring.
- Arize AI. (2024). ML Observability Metrics Guide.
- Fairlearn. (2024). Fairness Metrics.
- NIST. (2024). AI Risk Management Framework.
Frequently Asked Questions
Track operational metrics (availability, latency), performance metrics (accuracy, precision, recall), data metrics (quality, drift), business metrics (ROI, adoption), and fairness metrics.
Base thresholds on business requirements, historical baselines, and acceptable variation. Set different thresholds for warnings versus critical alerts. Review and adjust regularly.
Surface insights that drive decisions, not just data. Include trend analysis, anomaly highlights, and clear escalation indicators. Design for the audience—executives vs. operators.
References
- Google. (2024). *Monitoring Machine Learning Models in Production*.. Google *Monitoring Machine Learning Models in Production* (2024)
- AWS. (2024). *Best Practices for ML Model Monitoring*.. AWS *Best Practices for ML Model Monitoring* (2024)

