Skip to content
April 27, 2026

Mixed observability for GenAI

OTel substrate + GenAI layer

/ Mixed Observability for GenAI 2026

Slide contents

  1. 1. Mixed observability for GenAI

    OTel substrate + GenAI layer

  2. 2. What this article covers

    Scheme → SOTA stack

    Parts 1-2: scheme, architecture.

    Parts 3-4: GenAI traces, OTel/Langfuse.

    Parts 5-6: market and maturity gaps.

    Part 7: SOTA stack and verdict.

  3. 3. 01. Two-layer observability scheme

    OTel as the nervous system + specialized GenAI layer on top

  4. 4. OTel substrate + GenAI layer

    SOTA is a two-layer scheme

    OpenTelemetry — substrate

    One standard for service telemetry.

    Collector: redaction, sampling, fan-out.

    GenAI layer on top

    Langfuse, MLflow, Phoenix, Datadog.

    Prompts, cost, evals, feedback, datasets.

  5. 5. 02. Reference architecture

    What the chain from user request to AI backend looks like

  6. 6. From request to backend

    Mixed prod chain

    User/API → app; agent → RAG/model/tool.

    Logs/metrics/traces carry context.

    Collector: ingest, redact, sample, fan-out.

    APM/infra backend + GenAI backend.

  7. 7. OTel semantic conventions for GenAI

    Development: active, not yet stable

    Model, agent spans; GenAI events/metrics.

    gen_ai.operation.name covers chat, retrieval, tools.

    gen_ai.agent/tool identify agents/tools.

    gen_ai.usage.* provides token metrics.

  8. 8. 03. GenAI trace best practices

    Decision episode: from user request to final response

  9. 9. Structure of a good trace

    Around the business decision, not the model call

    Span hierarchy

    Root span = business operation.

    Child spans = services + GenAI.

    Signals

    Events/scores: quality, eval, feedback, safety flags.

    Metrics: latency, tokens, errors, cost.

  10. 10. 04. OTel/Langfuse: how they coexist

    OTel-first, Langfuse-as-AI-backend — the most mature pattern

  11. 11. Two integration models

    Langfuse is used inside the OTel model

    Langfuse as OTel backend

    OTLP endpoint: direct or via Collector.

    Fan-out: Langfuse + regular APM.

    Langfuse SDK v3 over OTel

    OTel client with AI conveniences.

    Tokens, prompts, scoring, observations.

  12. 12. Langfuse over raw OTel

    OTel transport; Langfuse AI UX

    Traces, sessions, observations as AI data.

    Token/cost tracking with prompt-aware aggregation.

    Scores: feedback, judge, programmatic evals.

    Prompt management, datasets, experiments, self-hosting.

  13. 13. 05. Four market approaches

    OTel-first, APM-first, AI-platform-first, Auto-instrumentation

  14. 14. 4 architectural approaches

    Trade-offs

    OTel-first + AI backend: tracing, neutrality, fan-out.

    APM-first: single pane, weaker prompts/evals.

    AI-platform-first: AI lifecycle + OTel protocol.

    Auto-instrumentation: fast start, semantics still vary.

  15. 15. 06. Maturity assessment: 7 pain points

    Honest assessment — what's covered, what's partial, what still hurts

  16. 16. What already works well

    Correlation and standardization

    HTTP → agent → model/tool trace.

    Logs correlate by trace/span IDs.

    AI is traced by the same mechanism.

    OTel GenAI semconv covers spans/tools/evals.

  17. 17. Token/cost and quality

    Decent but not perfect

    Tokens and latency are first-class objects.

    Inferred pricing misses billing, cache, retries, streaming.

    Quality: scores, judges, gen_ai.evaluation.result.

    Regressions = usefulness degradation, not exceptions.

  18. 18. What still hurts

    Privacy, scale, and tool coexistence

    Privacy: prompts/outputs need allowlists/redaction.

    Scale: heavier traces; complex tail sampling.

    Span filtering breaks trace integrity.

    TracerProvider conflicts between OTel tools.

  19. 19. 07. SOTA stack and verdict

    Five principles for the right stack for a mixed prod system

  20. 20. The right SOTA stack

    Mixed prod design today

    OTel everywhere: traces, metrics, logs.

    Collector: redaction, routing, fan-out.

    AI-aware backend over OTel.

    Root trace = operation; evals near latency.

  21. 21. Verdict

    The industry matured, but not fully

    SOTA = OTel protocol/context + AI interpretation/evals.

    End-to-end mixed observability is more standard.

    Quality and privacy/governance remain open zones.

    tellmeabout.tech · ai4sdlc-research.space

  22. 22. References and Materials

    OTel, GenAI telemetry, evals

    OpenTelemetry documentation and GenAI semantic conventions.

    Langfuse, MLflow, Phoenix and OpenInference tracing/evaluation docs.

    Datadog LLM Observability; Azure AI Foundry.

  23. 23. Thank you!

    Mixed Observability for GenAI

    Materials and links are in the "Book Cube" channel

    Alexander Polomodov, Technical Director & Fellow, T-Technologies

    @Book_Cube