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In the rapidly evolving field of materials science, artificial intelligence (AI) models have become integral to accelerating discovery and design processes. Yet, their evaluation often relies on simplistic accuracy measures that overlook the broader decision-making contexts. This conceptual paper develops a novel decision-theoretic framework for assessing materials AI models, integrating utility considerations, risk dynamics, and epistemic uncertainties to provide a more holistic understanding of model performance. By synthesizing recent literature on AI applications in materials science and decision theory, the framework interprets model outputs not merely as predictions but as inputs to decision processes where trade-offs between precision, computational efficiency, and real-world applicability shape outcomes. It explores analytical implications, including how utility-based evaluations reveal the interaction between model reliability and stakeholder priorities, fostering systems-level insights into AI’s role in sustainable materials innovation. Ethical reasoning is woven throughout, highlighting epistemic challenges in interpreting model behaviors under uncertainty. This approach steers away from isolated metric assessments toward integrative evaluations that align AI capabilities with the multifaceted demands of materials engineering, ultimately enhancing the trustworthiness and utility of AI-driven advancements. The framework’s interpretive lens offers pathways to refine evaluation practices, ensuring that AI models contribute meaningfully to decision-making in high-impact applications.