Operations | Monitoring | ITSM | DevOps | Cloud

AI cost observability is the practice of measuring, attributing, and analyzing AI workload costs at the request, model, and workflow level in real time. It connects cloud infrastructure spend, inference and token costs, and business attribution (cost per feature, team, customer, or product) so engineering, finance, and product teams can see where AI spend goes and whether it creates value. On July 14, IBM had its worst trading day since 1987.

AI cost observability is the practice of measuring, attributing, and analyzing AI workload costs at the request, model, and workflow level in real time. It connects cloud infrastructure spend, inference and token costs, and business attribution (cost per feature, team, customer, or product) so engineering, finance, and product teams can see where AI spend goes and whether it creates value.

The last few years have seen AI conversations dominated by the need for investment in hyperscale infrastructure as firms race to build ever larger training models. But as those conversations evolve, the emphasis is shifting to the next phase of AI adoption, focusing on the scaling of use cases and real-world value. In line with this shift, organisations are looking beyond where AI is trained to the specifics of where it is actually used.

When you're the on-call engineer and something breaks, you can quickly find yourself deep in a series of tools you don't regularly use—switching tabs, copying query results, and manually stitching together a picture of what's happening and why. People are increasingly turning to AI to get around this, but the results can be a mixed bag.

AI has changed how software gets built. It hasn't changed how software gets run. Most of the AI money in software has gone into the IDE: code generation, copilots, developer assistants, faster pull requests. That work matters. But writing software is one slice of the lifecycle. The harder problem, and the more expensive one, is running that software in production. Production is where systems fail in ways nobody predicted. Incidents don't stay inside one service.

PagerDuty fires. You open the incident. Title, timestamp, nothing else. Whatever context exists is in someone's head, in a Slack thread from two weeks ago, or in a runbook nobody has touched since the last reorg. We got tired of that. So we put an AURA agent behind a Slack bot and pointed it at our own production environment.

The open-source landscape has witnessed another highly automated, ecosystem-level subversion. On June 17, 2026, a critical software supply chain attack struck the Mastra AI framework - a popular open-source TypeScript ecosystem used widely to build AI agents, workflows and RAG pipelines. By exploiting a compromised contributor account, threat actors successfully mass-published 144 malicious packages under the official @mastra npm scope.

A new report from LeadDev and Harness makes one thing clear: AI coding tools have fundamentally changed how much code organizations are producing. What has not changed nearly fast enough is how that code gets released. The State of AI-Driven Software Releases 2026 report, based on responses from 500424 engineers across industries and company sizes, puts real numbers behind a problem that engineering leaders have been feeling for a while. AI is accelerating the code creation side of the SDLC.