Datadog Challenge: First Place
Skinnova
Skinnova - Personalized skincare with operational AI trust and reliability.
Core trick
Evaluates only selected prompts for hallucination and groups flagged answers by user attributes to estimate affected cohorts.
Built with
certbotdatadogdockerdocker-composefastapigithubgithub-workflowgoogle-bigquerygoogle-cloudgoogle-dataflowhuskynginxpythonreacttypescriptvertexaivite
Description
Skinnova
Inspiration
Skinnova was inspired by a critical but underexplored problem in AI observability:
people increasingly rely on AI for domain-specific advice
, yet most LLM monitoring systems fail to answer the question that matters most in production:
If a hallucination occurs, how many users does it actually affect, and who are they?
While building AI-driven experiences, we realized that
traditional LLM observability treats hallucinations as a binary correctness issue
, often evaluating every prompt uniformly. This approach is expensive, noisy, and misses the bigger picture.
This insight led us to design Skinnova not just as an AI skincare assistant, but as a
production-grade system where AI reliability, risk, and impact are fully observable
— a pattern applicable to any high-stakes AI product.
What We Built
Skinnova is an AI-powered skincare assistant built on top of a
novel LLM observability layer
focused on two core innovations:
selective hallucination evaluation
and
hallucination blast radius measurement
.
The assistant:
Provides personalized skincare routines
Explains ingredients and formulations
Answers skin concern–specific questions
Tailors responses using user attributes such as age, skin type, and skin concern
These user attributes serve a dual purpose — personalizing responses
and
powering a persona-aware observability system that tracks how hallucinations propagate across different user cohorts.
How We Built It
System Architecture
Google Cloud
Used for LLM inference and backend infrastructure to ensure scalability and reliability, metric emission through Dataflow and BigQuery.
Python + FastAPI
Handles request orchestration, persona enrichment, and metric emission.
React + Vite
Facilitates the seamless user interface.
Datadog
Used as the central observability platform for metrics, dashboards, alerts, and runbooks.
Selective Hallucination Evaluation
Instead of evaluating hallucinations for every prompt, Skinnova introduces a
risk-based prefilter
that assigns a risk score to each prompt. Only prompts with a risk score above 0.25 are evaluated for hallucination. Importantly,
the decision to evaluate is itself observable
— a first-class signal in the system.
This allows us to track:
How often evaluation is triggered
Why it was triggered
Affected users along with prefilter accuracy
Hallucination Blast Radius
Detecting a hallucination alone is not enough. We wanted to understand
real-world impact
.
We introduced the
Hallucination Blast Radius Index (HBRS)
, derived inside Datadog using observable signals:
HBRS = HallucinationScore × ChatVolume × UserPersonaRiskWeight
Where:
Hallucination Score
measures semantic deviation [Score: 0–1]
Chat Volume
represents real user exposure
Persona Risk Weight
reflects sensitivity based on age group and skin concern [Score: 1–2]
By emitting
atomic metrics
and deriving impact dynamically, we keep the system transparent, tunable, and production-realistic.
Persona-Aware Impact Visualization
User attributes such as:
user.age_bucket
user.skin_type
user.skin_concern
are emitted as
low-cardinality Datadog tags
.
This enables heatmaps and breakdowns that show:
Which user personas are affected
How hallucinations propagate across cohorts
Why the same hallucination can be low-risk or high-risk depending on audience
Challenges We Ran Into
1. Avoiding Metric Noise
Evaluating hallucinations everywhere creates alert fatigue. Designing a selective pipeline required careful prefiltering without missing critical cases.
2. Balancing Simplicity and Novelty
We had to ensure the system was explainable while still demonstrating deep AI observability and reliability thinking.
3. Designing Auditable Observability
We avoided black-box scores by emitting only atomic, auditable metrics and deriving insights transparently in Datadog.
4. Mapping AI Reliability to Business Impact
Translating hallucination scores into something operationally meaningful required rethinking traditional LLM monitoring approaches entirely.
5. GCP Hallucination Compatibility
Since Datadog doesn't have native integration with GCP LLMs such as Vertex AI for hallucination evaluation, we built a dedicated LLM judge to fill that gap.
Accomplishments We're Proud Of
1. Designed selective hallucination evaluation
Instead of evaluating every LLM response, we built a risk-based prefilter that decides when and why hallucination evaluation happens — and made that decision itself observable.
2. Turned hallucinations into measurable impact
We moved beyond raw hallucination scores by computing a hallucination blast radius, correlating severity with real traffic and user personas to understand who was affected and how far issues spread.
3. Built end-to-end AI observability with Datadog
We integrated Datadog across APM, infrastructure, AI observability, and custom hallucination metrics to create a single, coherent operational view of the system.
4. Defined SLOs for AI behavior, not just uptime
We established SLOs around hallucination impact, allowing AI reliability to be measured and enforced like any other production service.
5. Implemented actionable detection, alerts, and runbooks
Detection rules trigger Slack alerts when blast radius thresholds are breached, each linked to a runbook that guides engineers through assessment and mitigation steps.
6. Delivered a production-grade AI reliability pattern
Skinnova demonstrates a reusable approach for operating LLMs safely at scale — where hallucinations are managed as incidents with clear signals, thresholds, and response workflows.
What We Learned
Not all hallucinations matter equally
— exposure and user context define risk
Observability should measure
impact
, not just model behavior
Making
evaluation decisions observable
is as important as evaluating outcomes
Domain-aware personas dramatically improve interpretability of AI incidents
Separating raw signals from derived metrics increases flexibility and trust
What's Next for Skinnova
Adaptive risk-aware evaluation
Evolve selective hallucination evaluation by dynamically adjusting prefilter thresholds based on live SLO health, traffic patterns, and incident history.
Feedback-driven reliability loops
Use post-incident data and runbook outcomes to continuously refine detection rules, persona risk weights, and evaluation strategies.
Deeper integration with Datadog AI features
Expand use of Datadog's AI Observability to track prompt patterns, response drift, and long-term hallucination trends across model versions.
Proactive user impact prevention
Introduce automated mitigation actions, such as safe-response fallbacks or response throttling, before blast radius thresholds are breached.
Model and prompt version observability
Compare hallucination behavior across model and prompt versions to support safer rollouts and controlled experimentation.
README excerpt
# Skinnova ## Inspiration Skinnova was inspired by a simple but serious problem: **people increasingly rely on AI for skincare advice**, yet skincare guidance directly affects real human bodies. Unlike casual chatbots, incorrect or hallucinated skincare recommendations can lead to irritation, long-term skin damage, or loss of trust. While building AI-driven skincare experiences, we realized that **traditional LLM observability treats hallucinations as a binary correctness issue**, often evaluating every prompt uniformly. This approach is expensive, noisy, and fails to answer a more important question: > *If a hallucination occurs, how many users does it actually affect, and who are they?* This insight led us to design Skinnova not just as an AI skincare assistant, but as a **production-grade system where AI reliability, risk, and impact are observable**. ## What We Built Skinnova is an AI-powered skincare assistant that: - Provides **personalized skincare routines** - Explains **ingredients and formulations** - Answers **skin concern–specific questions** - Tailors responses using **user attributes** such as age group, skin type, and skin concern On top of this user-facing functionality, we built a **novel LLM observability layer** focused on **selective hallucination evaluation and blast radius measurement**. ## How We Built It ### System architecture <img width="6580" height="3698" alt="Skinnova-datadog arch diagram" src="https://github.com/user-attachments/assets/d7