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This research addresses critical challenges in deploying Large Language Models (LLMs) for service system optimization, specifically focusing on mitigating biases inherent when using automated textual evaluations versus costly human audits. By formalizing the selection of optimal configurations like chatbot variants as a sequential decision problem under arm-dependent bias, the study proposes an algorithm that significantly reduces reliance on expensive expert review while maintaining high confidence in model performance. The work advances practical machine learning methodologies for evaluating LLM outputs where traditional scalar metrics are insufficient and automated judges introduce systematic errors.
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Designing Service Systems from Textual Evidence

arXiv3 min read

arXiv:2603.10400v2 Announce Type: replace-cross Abstract: Designing service systems requires selecting among alternative configurations -- choosing the best chatbot variant, the optimal routing policy, or the most effective quality control procedure. In many service systems, the primary evidence of performance quality is textual -- customer support transcripts, complaint narratives, compliance review reports -- rather than the scalar measurements assumed by classical optimization methods. Large language models (LLMs) can read such textual evidence and produce standardized quality scores, but these automated judges exhibit systematic biases that vary across alternatives and evaluation instances. Human expert review remains accurate but costly. We study how to identify the best service configuration with high confidence while minimizing expensive human audits, given that automated evaluation is cheap but biased. We formalize this as a sequential decision problem where a biased proxy score is observed for every evaluation, and a verified outcome can be acquired selectively at additional cost. We prove that LLM-only selection fails under arm-dependent bias, and that naive selective-audit estimators can be asymptotically biased. We develop an estimator combining proxy scores with inverse-propensity-weighted residuals and construct anytime-valid confidence sequences. Our algorithm, PP-LUCB, jointly decides which alternatives to evaluate and whether to request human audits, concentrating reviews where the LLM judge is least reliable. We prove correctness and establish instance-dependent cost bounds showing near-optimal efficiency. On a customer support ticket classification task, our algorithm correctly identifies the best model in 40/40 trials while achieving 90\% audit cost reduction.

Abstract:Designing service systems requires selecting among alternative configurations -- choosing the best chatbot variant, the optimal routing policy, or the most effective quality control procedure. In many service systems, the primary evidence of performance quality is textual -- customer support transcripts, complaint narratives, compliance review reports -- rather than the scalar measurements assumed by classical optimization methods. Large language models (LLMs) can read such textual evidence and produce standardized quality scores, but these automated judges exhibit systematic biases that vary across alternatives and evaluation instances. Human expert review remains accurate but costly. We study how to identify the best service configuration with high confidence while minimizing expensive human audits, given that automated evaluation is cheap but biased. We formalize this as a sequential decision problem where a biased proxy score is observed for every evaluation, and a verified outcome can be acquired selectively at additional cost. We prove that LLM-only selection fails under arm-dependent bias, and that naive selective-audit estimators can be asymptotically biased. We develop an estimator combining proxy scores with inverse-propensity-weighted residuals and construct anytime-valid confidence sequences. Our algorithm, PP-LUCB, jointly decides which alternatives to evaluate and whether to request human audits, concentrating reviews where the LLM judge is least reliable. We prove correctness and establish instance-dependent cost bounds showing near-optimal efficiency. On a customer support ticket classification task, our algorithm correctly identifies the best model in 40/40 trials while achieving 90\% audit cost reduction.

This submission is withdrawn because it duplicates arXiv:2601.21471 by the same authors. The expanded manuscript was submitted as a new entry instead of as a replacement, so the same paper is now indexed twice. No results, proofs, or data are retracted. The current version is maintained as a replacement of arXiv:2601.21471, which readers should cite

Machine Learning (cs.LG); Artificial Intelligence (cs.AI); Optimization and Control (math.OC); Machine Learning (stat.ML)

arXiv:2603.10400 [cs.LG]

(or arXiv:2603.10400v2 [cs.LG] for this version)

Full text under the publisher's open licence · 313 words

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