What is LLM observability?

Authors

Joshua Noble

Data Scientist

Shalini Harkar

Lead AI Advocate

LLM observability defined

LLM observability is the process of collecting real-time data from LLM models or apps about its behavioral, performance and output characteristics. As LLMs are complex, we can observe them based on patterns in what they output.1

A good observability solution consists of collecting relevant metrics, traces and logs from LLM applications, application programming interfaces (APIs) and workflows, which allows developers to monitor, debug and optimize applications efficiently, proactively and at scale. 

Large language models (LLMs) and generative AI (gen AI) platforms such as IBM watsonx.ai® and an increasing assortment of open-source variants are taking hold across industries. Because of this increase, it has become more important than ever to maintain the reliability, safety and efficiency of models and applications after adoption. This space is where LLM observability becomes essential.

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Why is LLM observability important?

  • Monitor the quality and the outputs of LLMs:
    Continuous evaluation of the outputs produced by LLMs can be classified into several dimensions of quality that are useful and applicable for the users. These dimensions include correctness, relevance, coherence and factual consistency with defined evaluation metrics. Periodically checking these performance dimensions helps prevent lags or problems that might cause users to lose faith in the program and find it difficult to use LLMs efficiently.

  • Fast root cause analysis and troubleshooting:
    When a significant failure or an unexpected behavior occurs for an LLM application, an observability tool can provide useful insights to quickly identify the root cause (or causes) of the issue at hand. This level of fine-grained telemetry will generally allow stakeholders to isolate the problems with higher levels of confidence in many areas. For example, corrupted training data, poorly-designed fine-tuning, failed external API calls or dead third-party provider on-backend outages.

  • Optimize applications, user engagement and system efficiency:
    LLM observability allows application performance and user engagement to improve through continuous monitoring of the entire LLM stack. Key metrics such as latency, tokens used, time to respond and throughput, are tracked to identify bottlenecks and limiting factors to allow further performance optimization and cost reduction, particularly in RAG workflows. Real-time tracking of interactions and user feedback help provide insights into when low-quality outputs are being generated, resolve issues as they arise and discover root causes. This consistent adaptation to user behavior allows the LLM to produce customized responses, optimize workflows and scale to meet demand without performance downsides.2, 3
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Key observability metrics

LLM observability metrics can be categorized into three primary dimensions.

Comprehensive observability of large language models (LLMs) can happen only if we track observability metrics that track system performance, resource consumption and model behavior.4

System performance metrics:

  • Latency: The duration from the input to output representing the model’s response time.

  • Throughput: Count of requests the model processes in a specific duration; a measure of the load of the model.

  • Error rate: The rate of failures or invalid responses; a reflection of the reliability of the model.

Resource-utilization metrics:

  • CPU/GPU usage: Measurement of resources consumed during inference, with relevance to cost and efficiency.

  • Memory usage: RAM or storage consumed during processing. While important for performance and scalability, this usage is secondary to the overall task.

  • Token usage: Track tokens processed. This step is especially important when tokens are associated with cost in models.

  • Throughput latency ratio: Throughput describes a system’s workload versus its responsiveness; finding a good balance between these two is essential to efficiency.

Model behavior metrics:

  • Correctness: Monitors how frequently the model produces a correct response.

  • Factual correctness: Evaluates whether the model delivers “correct” factual outputs.

  • User engagement: Quantifies the interaction duration, feedback and satisfaction to estimate experience.

  • Response quality: Measures the coherence, clarity and pertinence of outputs.5

Manual vs. agent-based autonomous observability 

Manually monitoring LLMs is difficult because of the large volume of data, complex system architecture and the need for real-time tracking. The abundance of logs and metrics makes it challenging to identify issues quickly. Moreover, manual observation is resource-heavy, prone to errors and cannot scale effectively as systems expand, resulting in slower problem detection and inefficient troubleshooting.

 These limitations demonstrate the difficulty of manually maintaining observability in LLMs, highlighting the need for more sophisticated, autonomous solutions for enterprise settings.6

Agent-based autonomous troubleshooting 

Autonomous troubleshooting refers to systems that can independently identify, diagnose and resolve issues without requiring human intervention by using advanced monitoring methods that use agent-based systems. The agents monitor performance, identify anomalies and perform real-time diagnostics, allowing systems to run unattended and without any human intervention.7

Agent-based autonomous troubleshooting helps with:

  • Real-time detection: Identify issues instantly without manual input.

  • Root cause analysis: Pinpoint the source of problems by using AI-driven insights. 

  • Automated resolution: Apply predefined solutions that are ready for immediate use to resolve issues.

  • Continuous monitoring: Adapt and learn from data to improve troubleshooting over time.

  • Scalability: Handle complex, large-scale environments efficiently by significantly reducing manual work.

  • Predictive maintenance: Anticipate potential issues before they arise, which can be tremendously valuable during peak performance cycles. 

  • Integration with observability: Works with other observability tools for faster issue resolution.

Enterprise solution 

Designed for scale, IBM® Instana® brings real-time visibility and autonomous troubleshooting for today’s complex enterprise observability.

With a three-step process—detection, AI-driven diagnosis and autonomous remediation—Instana delivers end-to-end autonomous troubleshooting to help ensure issues are detected and fixed before they impact your performance.8

To learn more about this capability, sign up for the Instana Agentic AI waitlist.  

Conclusion

Scaling generative AI involves autonomous troubleshooting with intelligent instrumentation, real-time LLM monitoring and effective orchestration. Dataset, model output and LLM response optimization plus robust model performance maintenance through optimized pipelines and real-time LLM testing, is crucial for a smooth user experience over various use cases such as chatbots. Open-source LLMs and machine learning workflow use is growing and taking advantage of embedding techniques, monitoring LLM calls by using an array of tools. Tools such as OpenTelemetry and others that incorporate sophisticated LLM observability tools into integrated observability platforms and dashboards will be essential to constructing scalable, stable AI systems that provide optimal model performance.9, 10

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Footnotes:

1 Kumar, S., & Singh, R. (2024). Don’t blame the user: Toward means for usable and practical authentication. Communications of the ACM, 67(4), 78–85. https://dl.acm.org/doi/10.1145/3706599.3719914

2 Datadog. (n.d.). What Is LLM Observability & Monitoring?. Retrieved May 19, 2025, from https://www.datadoghq.com/knowledge center/llm-observability/.

3 LLM-observability, GitHub. Retrieved May 19, 2025, from https://github.com/DataDog/llm-observability, Datadog. (n.d.).

4 Dong, L., Lu, Q., & Zhu, L. (2024). AgentOps: Enabling Observability of LLM Agents. arXiv. https://arxiv.org/abs/2411.05285.

5 LangChain. (n.d.). Datadog LLM Observability - LangChain, Langsmith .js. Retrieved May 19, 2025, from https://js.langchain.com/docs/integrations/callbacks/datadog_tracer/.

6 Optimizing LLM Accuracy, Retrieved May 19, 2025, from https://platform.openai.com/docs/guides/optimizing-llm-accuracy.

7 IBM Instana Observability. Retrieved May 19, 2025, from https://www.ibm.com/products/instana.

8 Monitoring AI Agents. IBM Documentation. Retrieved May 19, 2025, from https://www.ibm.com/docs/en/instana-observability/1.0.290?topic=applications-monitoring-ai-agents

9 Zhou, Y., Yang, Y., & Zhu, Q. (2023). LLMGuard: Preventing Prompt Injection Attacks on LLMs via Runtime Detection. arXiv preprint arXiv:2307.15043. https://arxiv.org/abs/2307.15043.

10 Vesely, K., & Lewis, M. (2024). Real-Time Monitoring and Diagnostics of Machine Learning Pipelines. Journal of Systems and Software, 185, 111136.