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Tracing is part of AI agent observability, not a substitute for it. A trace shows the linked steps and timing of an individual run; observability combines traces with logs, metrics, agent-specific context, and evaluations to help teams diagnose system health and assess agent behavior.
What is the difference between observability and tracing?
A trace records a request’s execution path: the operations involved, their relationships, and how long they took. It can help pinpoint where latency or an error entered a run. Observability is the wider practice of collecting and correlating signals to understand what a system did and whether it behaved as intended.
For an AI agent, those signals answer different questions:
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| Traces | Which steps did this run take, and where did time or failure accumulate? |
| Logs | What events, decisions, or errors were recorded? |
| Metrics | How often are requests, errors, or tool calls occurring, and how much time or resource use is involved? |
| Evaluations | Did the agent’s output meet quality, behavioral, or safety expectations? |
OpenTelemetry describes telemetry as useful both for troubleshooting and, given the non-deterministic nature of agents, for evaluation and improvement workflows. A trace can inform an investigation, but it does not by itself establish that an answer was accurate, appropriate, or safe.
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What should teams monitor in an agent run?
Start with signals that let an operator identify a run, reconstruct its execution, measure technical health, and assess its result. Google Cloud’s agent observability guidance and Microsoft’s generative and agentic AI observability guidance describe complementary telemetry and evaluation needs.
Run identity and timing
- Record timestamps, request context, and conversation or run identifiers when those identifiers already exist.
- Measure run and operation duration, request volume, and error rates and types.
- Do not manufacture a conversation ID from a trace ID, random UUID, or content hash when the application has no conversation identifier. OpenTelemetry’s GenAI agent span conventions caution against that substitution.
Execution structure and dependencies
Instrument the meaningful stages in the agent’s path: workflow and agent invocations, planning, model operations, tool executions, memory actions, and retrieval. Where the framework supports it, parent and child spans can show how sub-agents or nested operations relate to a larger run. The exact span hierarchy depends on the framework and instrumentation; it should reflect actual execution rather than an assumed universal structure.
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Capture relevant dependency context, such as retrieval-source provenance, tool arguments and results, permissions, and inter-service calls, only to the extent needed for diagnosis and evaluation. Apply data minimization and redaction to this context.
Model usage and resource signals
Track model identity when available, token consumption, and model-call counts. Token usage and latency can help teams identify changing usage patterns or costly-looking runs, while any actual cost figure depends on the backend’s pricing and accounting logic. There is no universal cost formula established by the telemetry conventions alone.
Quality, safety, and behavior
Connect technical telemetry to evaluation results, policy decisions, and deviations from behavioral baselines. A service can be available and return successful responses while still producing low-quality or unsafe outputs. Teams therefore need evaluations alongside uptime, error, and latency monitoring; uptime is not a quality score.
How to make traces useful for agents
A trace is most useful when it captures the agent’s real trajectory rather than only the top-level request. Microsoft Foundry’s agent tracing overview recommends consistent span attributes and illustrates traces spanning multi-agent work. OpenTelemetry’s GenAI conventions aim to make agent telemetry more consistent across tooling.
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- Cover the important stages: include model calls, tool invocations, retrieval, orchestration, and other meaningful operations in the run.
- Use consistent attributes: standardize names and meanings for shared fields across services and components so operators can correlate events without translating each framework’s vocabulary.
- Preserve relationships: represent parent-child and dependency relationships where instrumentation can accurately identify them.
- Correlate evaluations: link evaluation outcomes to the relevant run or trace so a quality result can be investigated in execution context.
- Choose instrumentation deliberately: built-in framework instrumentation may be easier to adopt, but can increase framework coupling or version lock-in; external instrumentation is another approach described by OpenTelemetry.
OpenTelemetry’s GenAI conventions are evolving rather than fixed: Microsoft notes that they have Development status and may change. Check the convention version used by each instrumentation library before relying on particular attribute names or schema behavior.
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How to evaluate an observability option
Whether a team is comparing frameworks, platforms, or instrumentation approaches, assess the operational fit rather than counting dashboards or features in isolation.
- Check trajectory coverage. Can it trace the complete agent path, including tools, retrieval, orchestration, and nested work where applicable?
- Check portability. Does it align with OpenTelemetry GenAI conventions, and can telemetry be exported to other backends?
- Check correlation. Can teams relate logs, metrics, traces, and evaluation results to the same run?
- Check maintenance burden. How much instrumentation upkeep is required, and how tightly is it tied to a particular framework or version?
- Check data controls. Can teams set sampling, retention, access, redaction, and data-residency controls appropriate to their obligations?
Documented products illustrate different implementations, not a comparative ranking: Google Cloud describes dashboards, topology maps, trace-derived metrics, and prompt/response evaluation; AWS documents hierarchical traces across orchestration, LLM calls, tools, and retrieval in OpenSearch AI observability; Microsoft Foundry documents tracing in its portal and Azure Monitor Application Insights. Feature availability and implementation details should be checked against the relevant service documentation.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Protect prompts, outputs, and tool data
Agent traces may contain prompt and response text, personal data, credentials, secrets, tool arguments, and results. Treat trace data with protections comparable to logs and metrics rather than assuming that telemetry is harmless metadata. OpenTelemetry specifically warns that input-message attributes are likely to contain sensitive information.
- Define a data contract for what is collected, why it is needed, who can access it, where it may reside, and how long it is retained.
- Redact personal data, secrets, and credentials from prompts, tool arguments, and span attributes before or as telemetry is recorded.
- Collect only the context required for troubleshooting or evaluation; consider whether a safer summary or selected fields can serve instead of full content.
- Set sampling and retention deliberately, balancing forensic needs with privacy, residency, and legal obligations.
- Review access controls and deletion behavior across the observability backend and any exported destinations.
Microsoft’s observability guidance and Foundry tracing documentation both emphasize governance and redaction for agent telemetry. These controls should be designed before teams broadly capture prompt or tool content.
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