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Written by Max Zeshut
Founder at Agentmelt
The process of annotating raw data (text, images, audio) with tags or classifications that teach AI models to recognize patterns. For AI agents, labeled data is used to train intent classifiers, evaluate agent accuracy, fine-tune models for domain-specific tasks, and build evaluation test suites. Modern approaches combine human labelers with AI-assisted labeling (where models pre-label data and humans correct errors), reducing cost by 50–70% versus fully manual annotation.
To evaluate a support agent's accuracy, a team labels 500 historical tickets with the correct resolution. The agent processes the same tickets, and its outputs are compared against the labels to measure accuracy, identify failure patterns, and prioritize improvements.