Operations | Monitoring | ITSM | DevOps | Cloud

AI agents are becoming a standard part of how engineers write, deploy, and troubleshoot software. Getting observability data into those workflows, securely and without manual intervention, remains the harder problem.

The rise of AI-assisted coding has transformed how software is built. With tools generating entire features in seconds, the bottleneck is no longer writing code—it’s verifying it. Because AI can generate boilerplate and handle API integrations instantly, more service changes are being pushed into authentication logic, API calls, and configurations. Teams desperately need a way to verify these changes before merging, especially when the code touches external dependencies.

AI inference and training are terms you'd run into if you have been around software engineering or even just scrolled through the news. Both are integral to delivering the AI-powered experiences we have come to expect from many of the applications we use daily. According to McKinsey, by 2030 inference will overtake training as the dominant workload in AI data centers, making up more than half of all AI compute and roughly 30-40% of total data center demand.

Enterprise IT was built for a more predictable workplace, where support began when an employee reported a problem and IT worked backward from the details they could provide. That model made sense when devices, applications, and ways of working were easier to control. Today, the digital workplace moves too quickly for IT to rely on reported issues alone. By the time a ticket appears, employees may have already lost time, worked around the problem, abandoned the tool, or turned to an unmanaged alternative.

You get an infrastructure alert. Something's off, so you task your agent to investigate, and it ends up grepping through the logs. You both wonder if there's customer impact. There’s a simple rule: AI agents in the incident loop are only as good as the signal you feed them. And logs alone aren't a great signal.

Building automated workflows that adapt to real-world complexity can be a challenge. As systems scale and scenarios multiply, teams often end up hardcoding endless logic branches just to handle every potential outcome. That’s why we’re introducing Bits Agent Builder, a powerful new tool that lets you create custom AI agents that are fully hosted by Datadog.