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Explainability Is the New Battleground in AI-Powered Observability

Marc Chipouras
Grafana Labs

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned. Grafana Labs recently surveyed 1,300+ practitioners around the world for Grafana Labs' annual Observability Survey, and 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability.

That's not a contradiction, it's a signal. The people closest to this technology, the ones who actually want to use it, are the ones most loudly demanding that it show its work. 95% of respondents said it's important for AI to explain its reasoning.

We've spent years in observability fighting alert fatigue: the flood of signals with no clear context, no prioritization, no "here's why this matters." Alert fatigue is still the single biggest obstacle to faster incident response, cited by nearly a third of practitioners in our survey. AI that behaves like a black box doesn't solve that problem. It compounds it. You've traded one source of noise for another.

The most common barrier to AI adoption in our survey wasn't cost, and it wasn't technical complexity; it was too much manual input of required context. In other words, practitioners are being asked to do significant work just to make the AI useful. If AI is creating new toil in place of old toil, we haven't made progress; we've just moved the bottleneck.

What practitioners actually want is AI that reduces the cognitive load of on-call work, not AI that adds to it. They want a system that can say: here is the anomaly, here is why I flagged it, here is the likely cause, and here is what I'd recommend (with the reasoning visible at every step). And while that may not be surprising, the question of autonomy is where things get interesting. 77% of respondents support AI taking autonomous actions, but 15% don't yet trust AI to act on their behalf, and another 8% see no value in it at all. That's a meaningful pocket of resistance, and it deserves to be taken seriously rather than steamrolled by hype.

The path to autonomous AI in observability runs directly through explainability. You cannot ask a team to trust a system that won't explain how it reached its conclusion. Especially not in incident response, where the cost of a wrong call (a missed alert, a misdiagnosed root cause, an automated action that makes things worse) is measured in downtime, revenue, and team trust.

The vendors and teams that get this right won't be the ones with the most sophisticated models. They'll be the ones who treat explainability as a first-class engineering requirement, not an afterthought. The AI that wins in observability will be the AI that practitioners can actually reason about, override when necessary, and learn from over time.

Marc Chipouras is VP of Emerging Products at Grafana Labs

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Explainability Is the New Battleground in AI-Powered Observability

Marc Chipouras
Grafana Labs

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned. Grafana Labs recently surveyed 1,300+ practitioners around the world for Grafana Labs' annual Observability Survey, and 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability.

That's not a contradiction, it's a signal. The people closest to this technology, the ones who actually want to use it, are the ones most loudly demanding that it show its work. 95% of respondents said it's important for AI to explain its reasoning.

We've spent years in observability fighting alert fatigue: the flood of signals with no clear context, no prioritization, no "here's why this matters." Alert fatigue is still the single biggest obstacle to faster incident response, cited by nearly a third of practitioners in our survey. AI that behaves like a black box doesn't solve that problem. It compounds it. You've traded one source of noise for another.

The most common barrier to AI adoption in our survey wasn't cost, and it wasn't technical complexity; it was too much manual input of required context. In other words, practitioners are being asked to do significant work just to make the AI useful. If AI is creating new toil in place of old toil, we haven't made progress; we've just moved the bottleneck.

What practitioners actually want is AI that reduces the cognitive load of on-call work, not AI that adds to it. They want a system that can say: here is the anomaly, here is why I flagged it, here is the likely cause, and here is what I'd recommend (with the reasoning visible at every step). And while that may not be surprising, the question of autonomy is where things get interesting. 77% of respondents support AI taking autonomous actions, but 15% don't yet trust AI to act on their behalf, and another 8% see no value in it at all. That's a meaningful pocket of resistance, and it deserves to be taken seriously rather than steamrolled by hype.

The path to autonomous AI in observability runs directly through explainability. You cannot ask a team to trust a system that won't explain how it reached its conclusion. Especially not in incident response, where the cost of a wrong call (a missed alert, a misdiagnosed root cause, an automated action that makes things worse) is measured in downtime, revenue, and team trust.

The vendors and teams that get this right won't be the ones with the most sophisticated models. They'll be the ones who treat explainability as a first-class engineering requirement, not an afterthought. The AI that wins in observability will be the AI that practitioners can actually reason about, override when necessary, and learn from over time.

Marc Chipouras is VP of Emerging Products at Grafana Labs

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Today's modern systems are not what they once were. Organizations now rely on distributed systems, event-driven workflows, hybrid and multi-cloud environments and continuous delivery pipelines. While each adds flexibility, it also introduces new, often invisible failures. Development speed is no longer the primary bottleneck of innovation. Reliability is ...

Seeing is believing, or in this case, seeing is understanding, according to New Relic's 2025 Observability Forecast for Retail and eCommerce report. Retailers who want to provide exceptional customer experiences while improving IT operations efficiency are leaning on observability ... Here are five key takeaways from the report ...

Technology leaders across the federal landscape are facing, and will continue to face, an uphill battle when it comes to fortifying their digital environments against hostile and persistent threat actors. On one hand, they are being asked to push digital transformation ... On the other hand, they are facing the fiscal uncertainty of continuing resolutions (CR) and government shutdowns looming near and far. In the face of these challenges, CIOs, CTOs, and CISOs must figure out how to modernize legacy systems and infrastructure while doing more with less and still defending against external and internal threats ...

Reliability is no longer proven by uptime alone, according to the The SRE Report 2026 from LogicMonitor. In the AI era, it is experienced through speed, consistency, and user trust, and increasingly judged by business impact. As digital services grow more complex and AI systems move into production, traditional monitoring approaches are struggling to keep pace, increasing the need for AI-first observability that spans applications, infrastructure, and the Internet ...

If AI is the engine of a modern organization, then data engineering is the road system beneath it. You can build the most powerful engine in the world, but without paved roads, traffic signals, and bridges that can support its weight, it will stall. In many enterprises, the engine is ready. The roads are not ...

In the world of digital-first business, there is no tolerance for service outages. Businesses know that outages are the quickest way to lose money and customers. For smaller organizations, unplanned downtime could even force the business to close ... A new study from PagerDuty, The State of AI-First Operations, reveals that companies actively incorporating AI into operations now view operational resilience as a growth driver rather than a cost center. But how are they achieving it? ...

In live financial environments, capital markets software cannot pause for rebuilds. New capabilities are introduced as stacked technology layers to meet evolving demands while systems remain active, data keeps moving, and controls stay intact. AI is no exception, and its opportunities are significant: accelerated decision cycles, compressed manual workflows, and more effective operations across complex environments. The constraint isn't the models themselves, but the architectural environments they enter ...

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