Observability in the Age of AI

Packet Pushers
Packet PushersJun 10, 2026

Why It Matters

Without robust AI observability, organizations risk runaway cloud bills, security breaches, and degraded user experiences, turning AI’s competitive advantage into operational liability.

Key Takeaways

  • AI observability expands beyond token usage to system health.
  • Monitoring AI includes latency, drift, hallucinations, and guardrails effectiveness.
  • Token consumption tracking prevents unexpected cost spikes and loops.
  • Agent gateways act as proxy for enforcing security and observability.
  • Dynamic guardrails must balance security with legitimate workflow exceptions.

Summary

Day 2 DevOps featured a deep dive into AI observability, with host Kyler Middleton and guest Anushiagi discussing how monitoring AI stacks differs from traditional applications and why tracking token consumption has become a critical operational concern.

The conversation highlighted that observability now must capture latency, model drift, hallucinations, GPU utilization, and token usage alongside classic metrics such as CPU and memory. Tools like agent gateways, MCP servers, and vector databases introduce new routing and workflow checkpoints that need to be instrumented.

Anushiagi cited real‑world incidents—a LinkedIn post about “free LLM access,” a company chatbot that generated code on demand, and an internal “Vera” bot that mistakenly blocked legitimate MFA‑bypass workflows—to illustrate the need for guardrails and telemetry that can surface misuse or unexpected loops.

Integrating these signals into an OpenTelemetry‑compatible stack enables teams to set token budgets, detect runaway loops, and enforce policy at the gateway level, turning AI from a cost‑driven black box into a manageable production service.

Original Description

As AI matures, it becomes increasingly important to know how it’s performing and what it actually costs. Ned and Kyler are joined by Anuj Tyagi, Senior Site Reliability Engineer for RingCentral, to discuss the critical shift toward AI observability. AI observability is not just about costs; Anuj breaks down why observability has to include agent gateways, MCP servers, local models, and more.
Links:
Anuj Tyagi DEV Community Profile - https://dev.to/sudo_anuj
Day Two DevOps is part of the Packet Pushers network. Visit our website to find more great networking and technology podcasts, along with tutorial videos, the Human Infrastructure newsletter, and loads more resources for building your IT career. https://packetpushers.net

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