Datadog unveils AI monitoring tools to track agent performance

Published 10/06/2025, 21:14
Datadog unveils AI monitoring tools to track agent performance

NEW YORK - Datadog, Inc. (NASDAQ:DDOG), a cloud monitoring company with an impressive market capitalization of $41.34 billion and robust gross profit margins of 80%, announced new capabilities for monitoring and testing AI agents on Tuesday, aiming to help organizations better evaluate their artificial intelligence investments. According to InvestingPro data, the company has maintained strong revenue growth of 25.54% over the last twelve months.

The cloud monitoring company introduced three new features: AI Agent Monitoring, which is now generally available, along with LLM Experiments and AI Agents Console, which are in preview. These tools are designed to provide visibility into how AI systems and agents perform in real-world applications. With a solid financial health score rated as GOOD by InvestingPro, Datadog appears well-positioned to invest in product innovation.

The AI Agent Monitoring feature maps decision paths of AI agents, showing inputs, tool calls, and outputs in an interactive graph. This allows engineers to identify issues like latency spikes or incorrect tool calls.

LLM Experiments enables testing of prompt changes and model swaps against datasets from production traces, helping teams measure improvements in accuracy and cost. The AI Agents Console provides centralized visibility into both in-house and third-party AI agent behavior.

"A recent study found only 25 percent of AI initiatives are currently delivering on their promised ROI," said Yrieix Garnier, VP of Product at Datadog. "Today’s launches aim to help improve that number by providing accountability for companies pushing huge budgets toward AI projects."

The announcement was made at DASH, Datadog’s annual observability conference. The new capabilities are part of Datadog’s LLM Observability product suite.

Timothée Lacroix, Co-founder & CTO at Mistral AI, and Michael Gerstenhaber, VP of Product at Anthropic, both provided statements supporting the importance of observability tools for AI agents in production environments.

The information in this article is based on a press release statement from Datadog. While the company’s stock is currently trading above its InvestingPro Fair Value, investors can access comprehensive analysis and 14 additional ProTips through InvestingPro’s detailed research reports, available as part of its coverage of 1,400+ US equities.

In other recent news, Datadog, Inc. introduced several new products and features during its annual DASH conference. The company unveiled three artificial intelligence agents aimed at improving incident resolution for development, security, and operations teams. These agents, including Bits AI SRE and Bits AI Dev Agent, are designed to perform tasks such as early triage on alerts and generating code fixes autonomously. Datadog also announced new security capabilities, like Code Security and LLM Observability, to protect AI environments from development to production. Additionally, the company launched an Internal Developer Portal that integrates with its application performance monitoring suite to provide developers with real-time system visibility. In the area of log management, Datadog introduced features like Archive Search and Flex Frozen to help organizations meet compliance and data retention needs. Shareholders recently approved amendments to Datadog’s Certificate of Incorporation, which include provisions to limit the monetary liability of certain officers. The election of new board members and the ratification of Deloitte & Touche LLP as the independent auditor were also confirmed.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.