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How AI Can Turbocharge Your Observability Practice

Mimi Shalash
Splunk

AI has transformed technologies, workflows and entire industries, reshaping how people scale performance analysis. Organizations are seeing that AI has the potential to dramatically strengthen innovation and employee productivity by automating manual tasks and quickly extracting valuable insights. This rapid enterprise adoption is showing no signs of stopping with global AI tool users expected to reach 729 million by 2030, in comparison to the current 314 million users in 2024.

AI's Growing Impact on Observability

As AI improves and strengthens various product innovations and technology functions, it's also influencing and infiltrating the observability space. Observability, a practice used by ITOps and engineering teams to improve digital resilience through lowering the cost of unplanned downtime, provides greater visibility across data, workflows and one's infrastructure as a whole. Just because a server is happy, doesn't mean customers are happy. Observability helps translate technical stability into customer satisfaction and business success and AI amplifies this by driving continuous improvement at scale.

Defining what good looks like can be challenging for customers, requiring time and effort. For example, developers often rely on historical data to determine if an API call should take 10 or 100 milliseconds, then observing performance and setting alerts based on manual thresholds. With AI, developers can automate these tasks by analyzing data at scale to detect patterns and predict optimal performance, lifting the burden from teams.

Reduce Noise Through AIOps

AIOps, or artificial intelligence for IT operations, is a common way that AI is integrated into observability and a natural next step in mature practices. The main goals of AIOps are to accelerate detection, investigation and response times, increasing efficiency and reducing costs. It achieves this by applying machine learning models to intelligently group alerts from different tools that are otherwise noisy. For example, applying integrated ML allows teams to identify anomalies across multiple third party systems, identifying potential downstream impacts, such as increased CPU usage and database latency that otherwise might not have crossed manual alert thresholds.

Surface Insights and Accelerate Investigations Through AI Assistants

Another way organizations can strengthen their observability practice is by incorporating AI assistants. By embedding generative AI into workflows, ITOps and engineering teams can reduce the learning curve for non expert users and troubleshoot faster. Natural language processing (NLP) addresses key challenges like the lack of context for troubleshooting and slow root cause analysis often delayed by tribal knowledge. AI assistants, with intuitive commands and a low barrier to entry, can now answer environment specific questions, ranging from "How many services are running" to "What was the highest response time on the checkout service at the world's leading T-Shirt company, yesterday?" This empowers accessibility, speeds up troubleshooting and drives more efficient decision-making.

Predict and Mitigate Downtime

AI not only drives time savings but also delivers on cost reductions. The occurrence of unplanned downtime goes beyond immediate financial costs and has a lasting impact on a company's shareholder value, brand reputation, innovation velocity and customer trust. Research has shown that 40% of Chief Marketing Officers (CMOs) say downtime impacts customer lifetime value (CLV) and damages reseller and/or partner relationships.

By leveraging AI, companies can proactively minimize downtime and ultimately protect their bottom line. Organizations rely on digital platforms that handle millions of transactions daily and performance is beholden to teams that can adjust resources dynamically, preventing issues before they impact the business.

For example, when identifying recurring patterns of performance degradation linked to high call center volume, AI models can help forecast when the system is likely to experience strain that could lead to customer churn and frustration. With the right insights at the right time, teams can redistribute workloads or fine-tune application configurations before issues occur.

Complement Human Thinking

AI has a profound ability to complement human decision-making by delivering unparalleled speed and precision. However, it does lack the common sense and nuanced judgment that only human intelligence can provide. For ITOps and engineering teams, a single decision can make a big impact on observability outcomes and cause a ripple effect into the business. To ensure a strategic approach to decision-making, ITOps and engineering teams can leverage AI to form a dynamic partnership. AI accelerates insights while human reasoning ensures those insights are applied with context.

In summary, AI's ability to rapidly analyze vast amounts of data, detect anomalies and automate tasks is not only transforming observability, but also the people and processes that make up the practice. While the future holds many possibilities, one thing is clear: as AI becomes a core pillar of observability best practices, it will redefine how we ensure resiliency.

Mimi Shalash is Observability Advisor at Splunk, a Cisco company

The Latest

Two years ago, almost every customer conversation about AI started with the same questions: Which model should we use? What can it do? Is it ready for the enterprise? Today, those discussions have moved on. CIOs are far more interested in how to govern AI, integrate it with existing systems, prepare their workforce and make it part of everyday operations. The challenge is no longer to prove that AI can deliver value. It's instead about how to embed AI into the business in a way that's secure, scalable and delivers measurable outcomes ...

 

Two things happened to production incidents between 2023 and now, and they did not happen at the same speed. The first is that a class of dependency that barely existed three years ago now accounts for one incident in ten. Incidents disclosed by AI model and AI application providers rose from 1.7% of all disclosed unplanned incidents in 2023 to 10.7% in 2026 year to date, roughly a sixfold rise; that counts only incidents at AI companies themselves, so the true share is higher. The second is that the time to close an incident has not come down ...

When an AI assistant gives an incomplete or incorrect answer, teams often blame the model. They adjust prompts, switch models, increase context windows or test a new retrieval strategy. However the model may not be a problem. In many enterprise AI workflows, the problem begins inside the document-ingestion pipeline ...

If you talk to any security or observability teams right now, they're all fighting the same fire: their tooling was built to ingest X, but their sources are pumping Y and soon to be doing Z. The knee-jerk reaction is always the same: we need more platform. However, this reaction is wrong. Let me explain why, because the solution to this problem is foundational, not financial. Instead of hurling yet more money at the problem, make sure you've done what's needed upstream ...

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 ...

AI is usually talked about as a software tool, but it also depends heavily on the network behind it. Whether a company is using AI for chatbots, automation, monitoring, analytics, or employee support, all of that information has to move across the network in a reliable and secure way. That means AI is not just an application decision. It is also an infrastructure decision. Before organizations rush into AI, they should ask a simple question: Is our network ready to support it? ...

Enterprise AI often lacks governed access to where business processes actually execute. Without that access, AI agents may be able to reason, but they cannot operate reliably across enterprise workflows. For AI agents to effectively carry out workflows, they will require integration-layer context and controls. Organizations can implement these prerequisites by providing AI with managed access to the middleware layer ...

Enterprise networks rarely behave the same way for very long. A routing adjustment in one region may unexpectedly alter application performance in another. A cloud migration may introduce hidden dependencies that go unnoticed until an outage occurs. All the while, the network is managed by several different teams, each of whom use different tool sets — and as a result, have different views of the network ... There’s usually an engineer who remembers why traffic fails over a certain way between sites, or which transparent firewall was added where. The problem is that human memory cannot scale alongside enterprise-scale networks ...

Ask an infrastructure team how confident they are in their ability to govern AI, and most will tell you they've got it handled. A recent survey of 406 IT decision-makers and platform engineering leaders found 86% expressing exactly that confidence. Ask the same group whether they have a formal written AI governance policy, and the number drops to 30%, according to Spacelift's Infrastructure Automation Report ...

In MEAN TIME TO INSIGHT Episode 27, Shamus McGillicuddy, EMA VP of Research, Network Infrastructure and Operations, and Parker Hathcock, EMA Research Director covering IT Service/Operations (ServiceOps), discuss observability unification in modern IT operations ... 

How AI Can Turbocharge Your Observability Practice

Mimi Shalash
Splunk

AI has transformed technologies, workflows and entire industries, reshaping how people scale performance analysis. Organizations are seeing that AI has the potential to dramatically strengthen innovation and employee productivity by automating manual tasks and quickly extracting valuable insights. This rapid enterprise adoption is showing no signs of stopping with global AI tool users expected to reach 729 million by 2030, in comparison to the current 314 million users in 2024.

AI's Growing Impact on Observability

As AI improves and strengthens various product innovations and technology functions, it's also influencing and infiltrating the observability space. Observability, a practice used by ITOps and engineering teams to improve digital resilience through lowering the cost of unplanned downtime, provides greater visibility across data, workflows and one's infrastructure as a whole. Just because a server is happy, doesn't mean customers are happy. Observability helps translate technical stability into customer satisfaction and business success and AI amplifies this by driving continuous improvement at scale.

Defining what good looks like can be challenging for customers, requiring time and effort. For example, developers often rely on historical data to determine if an API call should take 10 or 100 milliseconds, then observing performance and setting alerts based on manual thresholds. With AI, developers can automate these tasks by analyzing data at scale to detect patterns and predict optimal performance, lifting the burden from teams.

Reduce Noise Through AIOps

AIOps, or artificial intelligence for IT operations, is a common way that AI is integrated into observability and a natural next step in mature practices. The main goals of AIOps are to accelerate detection, investigation and response times, increasing efficiency and reducing costs. It achieves this by applying machine learning models to intelligently group alerts from different tools that are otherwise noisy. For example, applying integrated ML allows teams to identify anomalies across multiple third party systems, identifying potential downstream impacts, such as increased CPU usage and database latency that otherwise might not have crossed manual alert thresholds.

Surface Insights and Accelerate Investigations Through AI Assistants

Another way organizations can strengthen their observability practice is by incorporating AI assistants. By embedding generative AI into workflows, ITOps and engineering teams can reduce the learning curve for non expert users and troubleshoot faster. Natural language processing (NLP) addresses key challenges like the lack of context for troubleshooting and slow root cause analysis often delayed by tribal knowledge. AI assistants, with intuitive commands and a low barrier to entry, can now answer environment specific questions, ranging from "How many services are running" to "What was the highest response time on the checkout service at the world's leading T-Shirt company, yesterday?" This empowers accessibility, speeds up troubleshooting and drives more efficient decision-making.

Predict and Mitigate Downtime

AI not only drives time savings but also delivers on cost reductions. The occurrence of unplanned downtime goes beyond immediate financial costs and has a lasting impact on a company's shareholder value, brand reputation, innovation velocity and customer trust. Research has shown that 40% of Chief Marketing Officers (CMOs) say downtime impacts customer lifetime value (CLV) and damages reseller and/or partner relationships.

By leveraging AI, companies can proactively minimize downtime and ultimately protect their bottom line. Organizations rely on digital platforms that handle millions of transactions daily and performance is beholden to teams that can adjust resources dynamically, preventing issues before they impact the business.

For example, when identifying recurring patterns of performance degradation linked to high call center volume, AI models can help forecast when the system is likely to experience strain that could lead to customer churn and frustration. With the right insights at the right time, teams can redistribute workloads or fine-tune application configurations before issues occur.

Complement Human Thinking

AI has a profound ability to complement human decision-making by delivering unparalleled speed and precision. However, it does lack the common sense and nuanced judgment that only human intelligence can provide. For ITOps and engineering teams, a single decision can make a big impact on observability outcomes and cause a ripple effect into the business. To ensure a strategic approach to decision-making, ITOps and engineering teams can leverage AI to form a dynamic partnership. AI accelerates insights while human reasoning ensures those insights are applied with context.

In summary, AI's ability to rapidly analyze vast amounts of data, detect anomalies and automate tasks is not only transforming observability, but also the people and processes that make up the practice. While the future holds many possibilities, one thing is clear: as AI becomes a core pillar of observability best practices, it will redefine how we ensure resiliency.

Mimi Shalash is Observability Advisor at Splunk, a Cisco company

The Latest

Two years ago, almost every customer conversation about AI started with the same questions: Which model should we use? What can it do? Is it ready for the enterprise? Today, those discussions have moved on. CIOs are far more interested in how to govern AI, integrate it with existing systems, prepare their workforce and make it part of everyday operations. The challenge is no longer to prove that AI can deliver value. It's instead about how to embed AI into the business in a way that's secure, scalable and delivers measurable outcomes ...

 

Two things happened to production incidents between 2023 and now, and they did not happen at the same speed. The first is that a class of dependency that barely existed three years ago now accounts for one incident in ten. Incidents disclosed by AI model and AI application providers rose from 1.7% of all disclosed unplanned incidents in 2023 to 10.7% in 2026 year to date, roughly a sixfold rise; that counts only incidents at AI companies themselves, so the true share is higher. The second is that the time to close an incident has not come down ...

When an AI assistant gives an incomplete or incorrect answer, teams often blame the model. They adjust prompts, switch models, increase context windows or test a new retrieval strategy. However the model may not be a problem. In many enterprise AI workflows, the problem begins inside the document-ingestion pipeline ...

If you talk to any security or observability teams right now, they're all fighting the same fire: their tooling was built to ingest X, but their sources are pumping Y and soon to be doing Z. The knee-jerk reaction is always the same: we need more platform. However, this reaction is wrong. Let me explain why, because the solution to this problem is foundational, not financial. Instead of hurling yet more money at the problem, make sure you've done what's needed upstream ...

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 ...

AI is usually talked about as a software tool, but it also depends heavily on the network behind it. Whether a company is using AI for chatbots, automation, monitoring, analytics, or employee support, all of that information has to move across the network in a reliable and secure way. That means AI is not just an application decision. It is also an infrastructure decision. Before organizations rush into AI, they should ask a simple question: Is our network ready to support it? ...

Enterprise AI often lacks governed access to where business processes actually execute. Without that access, AI agents may be able to reason, but they cannot operate reliably across enterprise workflows. For AI agents to effectively carry out workflows, they will require integration-layer context and controls. Organizations can implement these prerequisites by providing AI with managed access to the middleware layer ...

Enterprise networks rarely behave the same way for very long. A routing adjustment in one region may unexpectedly alter application performance in another. A cloud migration may introduce hidden dependencies that go unnoticed until an outage occurs. All the while, the network is managed by several different teams, each of whom use different tool sets — and as a result, have different views of the network ... There’s usually an engineer who remembers why traffic fails over a certain way between sites, or which transparent firewall was added where. The problem is that human memory cannot scale alongside enterprise-scale networks ...

Ask an infrastructure team how confident they are in their ability to govern AI, and most will tell you they've got it handled. A recent survey of 406 IT decision-makers and platform engineering leaders found 86% expressing exactly that confidence. Ask the same group whether they have a formal written AI governance policy, and the number drops to 30%, according to Spacelift's Infrastructure Automation Report ...

In MEAN TIME TO INSIGHT Episode 27, Shamus McGillicuddy, EMA VP of Research, Network Infrastructure and Operations, and Parker Hathcock, EMA Research Director covering IT Service/Operations (ServiceOps), discuss observability unification in modern IT operations ...