The Black Box Problem in AI Agents
When you deploy an AI agent in production, you’re essentially running a complex system that makes decisions, calls external APIs, processes data, and interacts with users—all in ways that can be difficult to understand after the fact. Traditional logging tells you that something happened, but not why or how long or at what cost.
For LLM-based systems, this opacity becomes a serious operational challenge:
- Token costs can spiral without visibility into per-request usage
- Latency issues hide in the pipeline between prompt and response
- Tool calls (file reads, API requests, code execution) happen invisibly
- Context window management affects quality but rarely surfaces in logs
The answer? Observability—specifically, distributed tracing designed for AI workloads.
OpenTelemetry: The Standard not only for AI Observability
OpenTelemetry (OTEL) has emerged as the industry standard for collecting telemetry data—traces, metrics, and logs—from distributed systems. What makes it particularly powerful for AI applications:
Traces Show the Full Picture
A single user message to an AI agent might trigger:
- Webhook reception from Telegram/Slack
- Session state lookup
- Context assembly (system prompt + history + tools)
- LLM API call to Anthropic/OpenAI
- Tool execution (file read, web search, code run)
- Response streaming back to user
With OTEL traces, each step becomes a span with timing, attributes, and relationships. You can see exactly where time is spent and where failures occur.
Metrics for Cost Control
OTEL metrics give you counters and histograms for:
tokens.input/tokens.outputper requestcost.usdaggregated by model, channel, or userrun.duration_msto track response latencycontext.tokensto monitor context window usage
This transforms AI spend from „we used $X this month“ to „user Y’s workflow Z costs $0.12 per run.“
Practical Setup: OpenClaw + Jaeger
At it-stud.io, we tested OpenClaw as our AI agent framework – already supporting OTEL by default – and enabled full observability with a simple configuration change:
{"plugins": {"allow": ["diagnostics-otel"],"entries": {"diagnostics-otel": { "enabled": true }}},"diagnostics": {"enabled": true,"otel": {"enabled": true,"endpoint": "http://localhost:4318","serviceName": "openclaw-gateway","traces": true,"metrics": true,"sampleRate": 1.0}}}
For the backend, we chose Jaeger—a CNCF-graduated project that provides:
- OTLP ingestion (HTTP on port 4318)
- Trace storage and search
- Clean web UI for exploration
- Zero external dependencies (all-in-one binary)
What You See: Real Traces from AI Operations
Once enabled, every AI interaction generates rich telemetry:
openclaw.model.usage
- Provider, model name, channel
- Input/output/cache tokens
- Cost in USD
- Duration in milliseconds
- Session and run identifiers
openclaw.message.processed
- Message lifecycle from queue to response
- Outcome (success/error/timeout)
- Chat and user context
openclaw.webhook.processed
- Inbound webhook handling per channel
- Processing duration
- Error tracking
From Tracing to AI Governance
Observability isn’t just about debugging—it’s the foundation for:
Cost Allocation
Attribute AI spend to specific projects, users, or workflows. Essential for enterprise deployments where multiple teams share infrastructure.
Compliance & Auditing
Traces provide an immutable record of what the AI did, when, and why. Critical for regulated industries and internal governance.
Performance Optimization
Identify slow tool calls, optimize prompt templates, right-size model selection based on actual latency requirements.
Capacity Planning
Metrics trends inform scaling decisions and budget forecasting.
Getting Started
If you’re running AI agents in production without observability, you’re flying blind. The good news: implementing OTEL is straightforward with modern frameworks.
Our recommended stack:
- Instrumentation: Framework-native (OpenClaw, LangChain, etc.) or OpenLLMetry
- Collection: OTEL Collector or direct OTLP export
- Backend: Jaeger (simple), Grafana Tempo (scalable), or Langfuse (LLM-specific)
The investment is minimal; the visibility is transformative.
At it-stud.io, we help organizations build observable, governable AI systems. Interested in implementing AI observability for your team? Get in touch.
