Transform 2025: The Imperative Role of Observability in AI Agent Ecosystems

The future of autonomous software is rapidly approaching, and industry leaders are emphasizing the importance of observability in maximizing agentic AI. At the recent Transform 2025 event, Ashan Willy, CEO of New Relic, alongside Sam Witteveen, CEO and co-founder of Red Dragon AI, delved into the strategies for effectively instrumenting agentic systems to achieve measurable ROI.

Understanding Observability

New Relic has pioneered observability solutions that enable customers to capture and correlate application, log, and infrastructure telemetry in real time. Observability transcends basic monitoring; it equips teams with the necessary context and insights to comprehend, troubleshoot, and optimize complex systems, particularly in an era marked by the integration of generative and agentic AI.

Accelerated Adoption of AI Monitoring

Willy noted a remarkable uptick in the usage of AI monitoring tools, reporting a 30% increase quarter over quarter. This surge reflects a broader trend as organizations increasingly incorporate AI technologies such as Nvidia NIM, DeepSeek, and ChatGPT into their operational frameworks. According to Willy, “Enterprises started with GPT, but are starting to use a whole bunch of models,” indicating a shift towards a more diversified approach to AI.

Diversity of AI Models

The landscape of AI models is evolving swiftly, with a reported 92% increase in the variance of models being utilized by enterprises. This diversification raises critical questions about measuring effectiveness and optimizing performance across different applications. Willy emphasized the necessity of redefining observability to keep pace with the rapid advancements in AI technologies.

Conclusion

As the demand for sophisticated AI solutions continues to grow, the role of observability becomes increasingly vital in ensuring that organizations can navigate the complexities of agentic systems. By leveraging advanced observability tools, companies can better understand the performance of diverse AI models, ultimately driving innovation and ROI.

Rocket Commentary

The discussions at Transform 2025 highlight an essential truth: as we edge closer to a future dominated by autonomous software, the need for robust observability cannot be overstated. New Relic's advancements in real-time telemetry provide a critical foundation for understanding the complexities of agentic AI systems. However, while the emphasis on measurable ROI is commendable, it raises questions about whether profitability may overshadow ethical considerations in AI deployment. The industry must prioritize not just operational efficiency but also the accessibility and ethical implications of these technologies. As businesses integrate agentic AI, they have a unique opportunity to lead in responsible innovation, ensuring that these powerful tools serve as catalysts for positive transformation rather than mere profit generators.