CARGO: Context-Aware Retrieval-Gated Evaluation of Agentic AI in Production

Mukul Chhabra, Shail Patel, Luigi Medrano

Reference-based LLM-as-a-judge evaluation assumes the reference answer is the target. In deployed agentic systems that operate over dynamic entities (support cases, assets, accounts), the closest available reference typically applies the correct procedure to a different entity, so a literal judge penalizes different identifiers, dates, and statuses as errors or hallucinations. We name this failure mode reference-instance divergence (RID). We propose CARGO, a framework that (i) treats retrieved references as procedural exemplars and grounds factual judgments in the live instance's observed context, (ii) assigns each claim a three-way status (supported, contradicted, unverifiable) and penalizes only contradictions, and (iii) gates evaluation by retrieval confidence, casting production evaluation as selective prediction. We introduce CARGO-Bench, a perturbation-based diagnostic suite with ground truth by construction that separates leniency from discrimination. On CARGO-Bench (246 items, two judge models, 7,872 judgments), the standard reference-based judge penalizes 100% of correct entity-transplanted answers and is uninformative (discrimination index DI ~ 0); supplying the live…