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As AI Scales Across Enterprises, Breaking Points Emerge

Rapid AI adoption and the unique ways AI workloads operate is redefining the scope and structure of what these teams must deliver. This shift is forcing organizations to rethink how they manage scale, automation, and control, according to The State of SRE and Platform Engineering 2026, a new report from Dynatrace based on a survey of 919 IT leaders examining how enterprises are orchestrating observability, automation, and AI to scale site reliability engineering (SRE) and platform engineering in large enterprises.

The findings demonstrate how SRE and platform engineering teams are at the forefront of integrating new benchmarks, tooling, and capabilities for AI workloads into their reliability and development environments. Gartner® projects that by 2028, 80% of enterprises will adopt SRE practices across their organizations, up from just 30% in 2024. Backed by executive support and shared ownership, these teams now carry growing accountability for the success or failure of AI initiatives, as organizations depend on them to evolve platforms, tooling, and standards.

Closing the Gap Between AI Development and AI Operations

These findings point to why Dynatrace recently announced its intent to acquire Arize. With 67% of SREs now naming AI model monitoring their top use case, and monitoring for model performance and accuracy already the most common AI-powered capability among SREs (58%), the demand for AI evaluation is outpacing the tools built to handle it. Yet AI is falling short on cost reduction and MTTR, and more than a third of platform engineers cite tool integration as their biggest barrier.

The Arize acquisition will help address this need directly: bringing AI-native evaluation into the observability platform itself, so teams building AI models and teams operating them in production are working from the same data instead of stitching together separate systems.

Why Scale Is the Next Big Challenge for Enterprises

The study demonstrates that SRE and platform engineering are now firmly established across large enterprises:

  • For SREs: 92% of organizations report executive leadership support for SRE initiatives.
  • For platform engineers: 89% of organizations practicing platform engineering have implemented an internal developer platform (IDP), with 60% reporting broad adoption across departments.
  • For both roles: 73% of SRE and platform engineering teams now collaborate and share responsibilities across reliability and platform domains.

Together, these findings demonstrate how enterprises have invested deeply in reliability, automation, and developer productivity, and SRE and platform engineering teams are now expected to apply that foundation to the next phase of digital transformation. AI workloads are increasingly part of production infrastructure, but rising complexity, new telemetry, and novel ways of failing are placing increased demands on observability.

AI Raises the Bar for Reliability and Oversight

According to the study, agentic AI is driving new priorities and challenges:

  • For SREs: 89% use service-level objectives (SLOs) across at least some teams or systems. 67% say monitoring AI models are now their top use case.
  • For platform engineers: 55% prioritize enabling developers with AI-powered tools such as coding copilots and chatbots.

While AI technologies are generally meeting expectations for improving reliability and developer productivity, they are delivering less impact than expected in lowering costs and reducing mean time to resolution (MTTR). This gap highlights the need for greater system-level intelligence and workflow orchestration than simply adding AI tools to existing environments. Nearly half of SRE respondents stated that too many data sources and metrics hinder their ability to define and manage effective SLOs.

Notably, teams are intentionally prioritizing visibility and human oversight before expanding automation, and monitoring AI systems for model performance and accuracy is SREs’ most common AI-powered capability (58%).

Observability Is Emerging as the Control Plane for Ai-Driven Operations

As enterprises push toward greater automation and AI-assisted operations, observability is becoming foundational to AI governance, reliability, and optimization across SRE and platform engineering. However, integration, complexity and fragmented data are emerging as major barriers to progress:

  • More than a third (37%) of platform engineers report that integrating with existing tools and systems is their top challenge.
  • Only 40% of platform engineers report embedding observability across all deployment stages.

Half of SREs now use AI powered capabilities for automated incident response, signaling a shift toward agentic operations where observability must act as the control plane that governs when and how autonomous actions are taken.

"SRE and platform engineering laid the groundwork for modern digital reliability, but AI is rewriting the rules. Enterprises need to now move from managing systems to orchestrating them, connecting observability, automation, and agentic AI to operate at the speed these initiatives demand, turning insight into action at scale," said Steve Tack, Chief Product Officer at Dynatrace. "This research also reflects why we recently announced our intent to acquire Arize. AI engineering teams have been evaluating in one set of tools while operations teams monitor in another, and that gap is no longer sustainable as AI moves deeper into enterprise production."
 

The Latest

For decades, traditional observability tools have forced IT professionals to sift through endless dashboards, turning a flood of alerts into actionable insight and driving widespread burnout. While enterprises adopted AI to eliminate this friction, most still deploy it reactively rather than proactively ... As systems become more complex and IT moves to the center of business strategy, a reactive posture is unsustainable ...

Ask an operations team what they monitor and you will hear a familiar list: latency, errors, throughput, uptime. Those signals still matter for AI, but they no longer answer the most important question. As Krishna Sai, CTO of SolarWinds, puts it: "Traditional observability tells you a system is running. AI observability tells you whether it's still reasoning soundly. Those are completely different questions" ...

AI observability serves several roles across an organization. AI engineers use it to build, evaluate, and improve AI systems. SREs use it to operate those systems reliably and efficiently in production, including managing their cost. Leaders need it to connect AI behavior and operational performance to business outcomes. The common need is a clear understanding of whether AI systems are delivering the intended result ...

Part 4 outlines the challenges enterprise face when adopting AI observability. The main challenge is that AI complexity compounds at every stage of maturity. LLM-based applications introduce new behavior, dependencies, and quality considerations, while Agentic AI adds further failure modes as systems make decisions and take actions ...

Part 3 reports on the current state of AI observability. Most experts agree: enterprises are moving faster with AI than they are with the operational discipline needed to run it safely ...

When discussing AI Observability, one of the first questions that arises: Is this just an extension of traditional observability or is this a whole new type of tool? Part 2 compares traditional observability with AI observability ...

In this extensive 14-part series that will post over the next three weeks, experts across observability and AI will provide insight and opinions on the need for AI Observability, the challenges, the benefits, the current state, and predictions for the future ...

Amid rising complexity, organizations are moving quickly toward agent-driven operations: AgenticOps, according to The Impact of Agentic AI on Network Operations, a new report from Cisco ...

AI, automation, and enterprise software give organizations an extraordinary amount of leverage. Work that once required hours can happen in minutes. Information buried across systems can be analyzed almost instantly. Complex workflows can be coordinated across teams with far less manual intervention. That leverage creates a temptation to start with the technology ...

Everyone wants to talk about models. Compute clusters. Benchmark scores that climb a fraction of a point and make headlines anyway. It's an easy conversation to have because it's measurable. But it's also increasingly beside the point ...

As AI Scales Across Enterprises, Breaking Points Emerge

Rapid AI adoption and the unique ways AI workloads operate is redefining the scope and structure of what these teams must deliver. This shift is forcing organizations to rethink how they manage scale, automation, and control, according to The State of SRE and Platform Engineering 2026, a new report from Dynatrace based on a survey of 919 IT leaders examining how enterprises are orchestrating observability, automation, and AI to scale site reliability engineering (SRE) and platform engineering in large enterprises.

The findings demonstrate how SRE and platform engineering teams are at the forefront of integrating new benchmarks, tooling, and capabilities for AI workloads into their reliability and development environments. Gartner® projects that by 2028, 80% of enterprises will adopt SRE practices across their organizations, up from just 30% in 2024. Backed by executive support and shared ownership, these teams now carry growing accountability for the success or failure of AI initiatives, as organizations depend on them to evolve platforms, tooling, and standards.

Closing the Gap Between AI Development and AI Operations

These findings point to why Dynatrace recently announced its intent to acquire Arize. With 67% of SREs now naming AI model monitoring their top use case, and monitoring for model performance and accuracy already the most common AI-powered capability among SREs (58%), the demand for AI evaluation is outpacing the tools built to handle it. Yet AI is falling short on cost reduction and MTTR, and more than a third of platform engineers cite tool integration as their biggest barrier.

The Arize acquisition will help address this need directly: bringing AI-native evaluation into the observability platform itself, so teams building AI models and teams operating them in production are working from the same data instead of stitching together separate systems.

Why Scale Is the Next Big Challenge for Enterprises

The study demonstrates that SRE and platform engineering are now firmly established across large enterprises:

  • For SREs: 92% of organizations report executive leadership support for SRE initiatives.
  • For platform engineers: 89% of organizations practicing platform engineering have implemented an internal developer platform (IDP), with 60% reporting broad adoption across departments.
  • For both roles: 73% of SRE and platform engineering teams now collaborate and share responsibilities across reliability and platform domains.

Together, these findings demonstrate how enterprises have invested deeply in reliability, automation, and developer productivity, and SRE and platform engineering teams are now expected to apply that foundation to the next phase of digital transformation. AI workloads are increasingly part of production infrastructure, but rising complexity, new telemetry, and novel ways of failing are placing increased demands on observability.

AI Raises the Bar for Reliability and Oversight

According to the study, agentic AI is driving new priorities and challenges:

  • For SREs: 89% use service-level objectives (SLOs) across at least some teams or systems. 67% say monitoring AI models are now their top use case.
  • For platform engineers: 55% prioritize enabling developers with AI-powered tools such as coding copilots and chatbots.

While AI technologies are generally meeting expectations for improving reliability and developer productivity, they are delivering less impact than expected in lowering costs and reducing mean time to resolution (MTTR). This gap highlights the need for greater system-level intelligence and workflow orchestration than simply adding AI tools to existing environments. Nearly half of SRE respondents stated that too many data sources and metrics hinder their ability to define and manage effective SLOs.

Notably, teams are intentionally prioritizing visibility and human oversight before expanding automation, and monitoring AI systems for model performance and accuracy is SREs’ most common AI-powered capability (58%).

Observability Is Emerging as the Control Plane for Ai-Driven Operations

As enterprises push toward greater automation and AI-assisted operations, observability is becoming foundational to AI governance, reliability, and optimization across SRE and platform engineering. However, integration, complexity and fragmented data are emerging as major barriers to progress:

  • More than a third (37%) of platform engineers report that integrating with existing tools and systems is their top challenge.
  • Only 40% of platform engineers report embedding observability across all deployment stages.

Half of SREs now use AI powered capabilities for automated incident response, signaling a shift toward agentic operations where observability must act as the control plane that governs when and how autonomous actions are taken.

"SRE and platform engineering laid the groundwork for modern digital reliability, but AI is rewriting the rules. Enterprises need to now move from managing systems to orchestrating them, connecting observability, automation, and agentic AI to operate at the speed these initiatives demand, turning insight into action at scale," said Steve Tack, Chief Product Officer at Dynatrace. "This research also reflects why we recently announced our intent to acquire Arize. AI engineering teams have been evaluating in one set of tools while operations teams monitor in another, and that gap is no longer sustainable as AI moves deeper into enterprise production."
 

The Latest

For decades, traditional observability tools have forced IT professionals to sift through endless dashboards, turning a flood of alerts into actionable insight and driving widespread burnout. While enterprises adopted AI to eliminate this friction, most still deploy it reactively rather than proactively ... As systems become more complex and IT moves to the center of business strategy, a reactive posture is unsustainable ...

Ask an operations team what they monitor and you will hear a familiar list: latency, errors, throughput, uptime. Those signals still matter for AI, but they no longer answer the most important question. As Krishna Sai, CTO of SolarWinds, puts it: "Traditional observability tells you a system is running. AI observability tells you whether it's still reasoning soundly. Those are completely different questions" ...

AI observability serves several roles across an organization. AI engineers use it to build, evaluate, and improve AI systems. SREs use it to operate those systems reliably and efficiently in production, including managing their cost. Leaders need it to connect AI behavior and operational performance to business outcomes. The common need is a clear understanding of whether AI systems are delivering the intended result ...

Part 4 outlines the challenges enterprise face when adopting AI observability. The main challenge is that AI complexity compounds at every stage of maturity. LLM-based applications introduce new behavior, dependencies, and quality considerations, while Agentic AI adds further failure modes as systems make decisions and take actions ...

Part 3 reports on the current state of AI observability. Most experts agree: enterprises are moving faster with AI than they are with the operational discipline needed to run it safely ...

When discussing AI Observability, one of the first questions that arises: Is this just an extension of traditional observability or is this a whole new type of tool? Part 2 compares traditional observability with AI observability ...

In this extensive 14-part series that will post over the next three weeks, experts across observability and AI will provide insight and opinions on the need for AI Observability, the challenges, the benefits, the current state, and predictions for the future ...

Amid rising complexity, organizations are moving quickly toward agent-driven operations: AgenticOps, according to The Impact of Agentic AI on Network Operations, a new report from Cisco ...

AI, automation, and enterprise software give organizations an extraordinary amount of leverage. Work that once required hours can happen in minutes. Information buried across systems can be analyzed almost instantly. Complex workflows can be coordinated across teams with far less manual intervention. That leverage creates a temptation to start with the technology ...

Everyone wants to talk about models. Compute clusters. Benchmark scores that climb a fraction of a point and make headlines anyway. It's an easy conversation to have because it's measurable. But it's also increasingly beside the point ...