In our previous discussion about monitoring, we covered everything valuable except for the most important “elephant in the room.” While monitoring is keeping your model sane, you have something to protect your project from “why” questions: why did your model tell me to eat more vegetables? How can I believe the model remembers my cousin’s birthday date correctly? How did my pet’s name information help to train this model? And so on.
Artificial intelligence observability is key to transparency and keeping your end users informed about anything they want to know about how the model works and what’s happening inside.
This feature fights with “black boxes” logic, ethical considerations, biases, and other challenges of ML models. In this article, we’ll go beyond the theory a bit and explain a framework using exemplary tools and an ML observability platform you might use.
What is AI observability?
Observability refers to the ability to fully understand the internal state of a system by analyzing its external outputs. In the context of AI/ML and data systems, observability provides the tools, techniques, and infrastructure needed to monitor, troubleshoot, and optimize the health, performance, and reliability of these systems in real-time.
Unlike traditional monitoring, which focuses on predefined metrics and alerts, observability dives deeper by enabling root cause analysis, anomaly detection, and predictive insights. It allows teams to proactively identify and resolve issues, ensuring that systems remain reliable, scalable, and aligned with business objectives.
The difference between monitoring and observability in AI
Aspect
AI/ML Monitoring
Observability, AI context
Definition
Tracking predefined metrics and system performance to detect issues.
Understanding the internal state of AI/ML systems by analyzing outputs, inputs, and behaviors.
Focus
What is happening: performance metrics, errors, latency.
Why it is happening: root cause analysis, debugging, and system behavior.
Scope
Limited to tracking specific metrics and thresholds.
Encompasses monitoring but also includes deeper insights into data, models, and pipelines.
Proactivity
Reactive: Alerts are triggered when metrics exceed thresholds.
Proactive: Provides tools to investigate, debug, and prevent issues before they occur.
Debugging
Limited debugging capabilities (e.g., identifying when a metric fails).
Enables root cause analysis by providing detailed logs, traces, and insights into system internals.
Timeframe
Focuses on real-time or near-real-time monitoring of metrics.
Includes real-time monitoring but also supports historical analysis and trend identification.
Complexity
Simpler, as it involves tracking predefined metrics.
More complex, as it requires deeper integration with data, models, and pipelines.
Use cases
- Detecting performance degradation
- Monitoring system uptime
- Alerting on failures
- Debugging model failures
- Investigating data or model drift
- Ensuring fairness and compliance
End goal
Ensure the system is running within acceptable performance thresholds.
Gain a comprehensive understanding of the system to improve reliability, transparency, and trust.
Key components of AI observability
Observability in AI is about understanding why something is broken and how to fix it. Think of it like a car dashboard but for your AI models, commonly with automated reactions and event prediction features. Here are the main parts that make it work:
1. Data check
Data is the fuel for AI, and if it’s dirty or changes over time, the model can go off track. Tools like Monte Carlo or Great Expectations check for missing values, weird patterns, or if the data starts drifting away from what the model was trained on.
A part of the Great Expectations dashboard | Source
2. Model check
Once the model is live, we need to make sure it’s doing its job. Is it still accurate? Is it treating everyone fairly? If the world changes—like during a pandemic—and the model starts making bad predictions, that’s called model drift. Tools like Arize AI or WhyLabs help us catch these issues.
3. Pipeline check
AI systems are like assembly lines—data comes in, gets processed, and then the model makes predictions. If one step breaks, the whole thing can fail. There are platforms like Dagster or Flyte specialized in analyzing the entire pipeline of the AI ecosystem.
Opensource is here as well: 71% of companies now use tools like Prometheus and OpenTelemetry to monitor their data pipelines. And that brings value even for beginners.
4. Real-time monitoring and alerts
If something goes wrong—like predictions taking too long or error rates spiking—you get an alert. Datadog or Prometheus are great for this. And while AI/ML isn’t a magic bullet for observability yet, it’s getting better at things like root cause analysis and anomaly detection.
5. Explainability
Big AI systems can act like a black box sometimes. Why did it deny someone a loan? Why did it recommend that product? Tools like SHAP or Fiddler AI help us explain the model’s decisions. This is super important for building trust, especially since 33% of organizations now consider observability business-critical at the C-suite level.
6. Bias and fairness monitoring
Model can accidentally learn biases from the data, and that’s a big no-no. The big platforms like Fairlearn or IBM AI Fairness 360 make sure the model treats everyone fairly. It’s like having an ethics coach for your project. And with regulations tightening, this is becoming a must-have for companies.
7. Security and privacy
AI systems can be attacked or leak sensitive data, so we need to keep them secure. Tools like Robust Intelligence or Protect AI help us detect adversarial attacks and ensure compliance with privacy laws like GDPR. Think of it as a security guard for your AI system.
For this case, Dysnix provides a set of DevSecOps services to address the security and privacy challenges of the projects. Find out more about that from the case below:
Explorer Surgical Case Study
Explorer Surgical is a cloud-based platform designed to optimize surgical
workflows and support real-time collaboration between medical professionals.
Before
Fragmented cloud architecture
Security vulnerabilities
Challenges in scaling
Manual monitoring systems
After
Unified, scalable cloud infrastructure built on Kubernetes, supporting
future growth and demand
98.7% reduction in cyberattack risks through enhanced security layers
and regular penetration tests
Automated real-time monitoring with custom metrics to ensure proactive
issue detection and resolution
Cost-efficient Infrastructure as Code for easy management and updates
All this data needs to be presented in a way that’s easy to understand. Dashboards and reports help us see the big picture and share insights with the team. Grafana or Streamlit are perfect for this. Did you know that 76% of organizations use open-source solutions like Grafana for visualization?
9. Feedback loops
Finally, for each project, there must be an instrument helping to learn from mistakes and improve. If users, stats, or coordinators say the model’s predictions are off, we collect that feedback, retrain the model, and make it better. Tools like LangSmith or Labelbox help us close the loop.
This is especially important for large language models (LLMs), where feedback is key to keeping them relevant.
Benefits of using AI observability
To determine if it’s the right time for your project to start the observability journey, explore these payoff benefits of your implementation efforts.
Proactive issue detection
Faster root cause analysis
Improved system reliability.
Enhanced data quality.
Optimized resource utilization.
Better collaboration.
Increased trust.
Scalability and compliance.
The point of view from Monte Carlo’s experts | Source
And to motivate you even more, let’s talk about the dark side of NOT implementing observability in your project.
Risks of ignoring observability
Increased downtime: Unresolved issues can lead to system outages and service disruptions.
Flawed decisions and business losses: Inaccurate or incomplete data can lead to a loss of trust in your service among both stakeholders and clients.
Security vulnerabilities: Unmonitored systems are more susceptible to attacks and data breaches.
Performance degradation: Slow response times and bottlenecks will negatively impact user experience.
Compliance violations: Failure to meet regulatory requirements can result in fines and legal liabilities.
Missed opportunities: Lack of insights into system behavior can lead to missed opportunities for optimization and growth.
Instead of closing remarks: What C-level executives should know about observability
AI observability is no longer just a technical framework, a whim of rich corporations that can afford expensive improvements. Now, it’s the linchpin for scaling AI systems, ensuring trust, and driving business value.
As Baris Gultekin, Head of AI at Snowflake, highlights, 2025 is the year AI observability goes mainstream, becoming the "missing puzzle piece" for explainability and production readiness.
Observability is evolving into a strategic enabler, helping projects prevent, explain, and solve hallucinations, bias, and inefficiencies while unlocking innovation through proactive monitoring and guardrails.
Unified platforms, AI-driven insights, and open standards like OpenTelemetry are reshaping the landscape, making observability a competitive advantage. Ignoring it risks not only operational failures but also reputational damage in an increasingly AI-driven world.
Let Dysnix accelerate your observability implementation