Optimize AI Costs with Agent Observability
Datadog, Thursday, October 22nd, 2026
Datadog Agent Observability ties estimated AI spend to the applications and traces that generate it.
Datadog says AI agent costs depend on models called and agent architecture, including loop turns, tool calls and how much context is re-sent each turn, while provider bills are keyed only to API keys and models.
Datadog Agent Observability connects estimated AI cost to applications and traces.
Its Cost page attributes spend across applications and lets teams drill into the most expensive calls.
Cost Savings Opportunities identify avoidable spend, such as uncached prompt prefixes, estimate impact and give remediation guidance.