Evaluating Domain Specific LLMs for Real World Finance — Waseem Alshikh, Writer
Apr 22, 2025 · 12:01
Writer CTO Waseem Alshikh presents FailSafe, a benchmark for evaluating LLMs in real-world finance, challenging the notion that general-purpose models suffice. Tests on query failures (misspelling, incomplete, out-of-domain) and context failures (missing context, OCR errors, irrelevant context) reveal that reasoning models like o1 and o3 perform 50% to 60% worse on context grounding than smaller domain-specific models, despite higher answerability. Even the best model achieves only 81% combined robustness and grounding, meaning roughly 20% of responses are wrong. Alshikh argues that domain-specific models remain essential, and that full-stack systems—RAG, guardrails, and grounding—are necessary for reliable deployment in high-stakes finance.
