Europe 2026
Everything You Need To Know About Agent Observability — Danny Gollapalli & Zubin Koticha, Raindrop
Danny Gollapalli , Zubin Koticha , Raindrop
Overview
This talk addresses the critical need for agent observability in AI systems, highlighting how traditional testing and evaluation methods are insufficient for non-deterministic and complex agents. It proposes a shift towards a monitoring paradigm, emphasizing the importance of collecting both explicit signals (like error rates and latency) and implicit signals (like user frustration and refusals) to understand and improve agent behavior in production. The discussion also touches upon self-diagnostics as a low-effort method for agents to report their own issues.
Who should watch
- AI Engineers
- Product Managers
- Builders of AI agents
- Those concerned with agent failures and reliability
- Teams looking to improve developer experience for AI systems
Key takeaways
- Agent failures differ from traditional software failures due to non-determinism, unbounded input/output spaces, and tool usage.
- Traditional evals are insufficient for complex agents with combinatorial input spaces and emergent behaviors.
- Monitoring production agents is crucial for faster iteration and catching long-tail issues.
- Key signals for agent observability include explicit metrics (error rate, latency, cost) and implicit metrics (refusals, task failures, user frustration, content moderation).
- Regex can serve as a powerful implicit signal for detecting specific negative user feedback.
- Self-diagnostics, where agents report their own issues, can be implemented with minimal effort through custom tools and system prompt adjustments.
- Experiments can be run by segmenting users and monitoring key signals to assess the impact of changes like prompt updates or model swaps.
- Framing self-diagnostics as feedback from the agent to its creators can improve its willingness to report issues.
Notable quotes
*Agent failures are very different than traditional failures in software.*
*The traditional paradigm we've been talking about is evals, right? ... But evals, they just aren't enough with this new paradigm.*
*We think in some ways this is very this is kind of controversial, but we've been calling this like humanity's last problem.*
Unofficial community note. Prefer the recording for nuance.