The Model Observatory Pattern: Monitoring Fine-Tuned LLMs in Production
As fine-tuned language models move from experimental to production in financial services, a new challenge emerges: how do you know when your model’s performance has degraded? A model that performed well at deployment may drift over time. Distribution of inputs changes. Market conditions shift. New financial instruments appear with vocabulary the model was not trained on. The risk is not just poor performance — it is confidently wrong predictions embedded in automated workflows processing millions of dollars in transactions. The Model Observatory pattern addresses this. It is a structured approach to detecting drift across three dimensions — data drift, model drift, and concept drift — with tooling and processes designed for regulated environments. ...