Investments in observability are increasing as organizations seek to expand AI use cases, mitigate risks, and optimize costs.
THE Dynatrace, a leading platform for AI-powered observability, announces the results of an independent global survey of 842 Chief Information Officers (CIOs), Chief Technology Officers (CTOs) and other senior technology leaders involved in IT operations and DevOps management in large organizations. The State of Observability Report 2025 Dyantrace reveals that while AI adoption is accelerating, concerns about reliability and trust make transitioning initiatives from concept to production challenging. To address this, business leaders are prioritizing observability solutions to scale their Artificial Intelligence projects, with over two-thirds (70%) stating that budgets for observability have increased in the last year.
The report's main findings include:
AI adoption
– 100% of the business leaders surveyed are currently using AI as part of their operations. The main use cases for Artificial Intelligence include data management (57%), AI governance (50%), and security operations (46).
– AI use cases, such as sustainability (27%) and log management (29%), present promising opportunities for organizations to expand adoption and achieve greater efficiency and Return on Investment (ROI).
– The two main categories in which business leaders anticipate AI-based automation will add significant value are real-time detection and response to security risks (37%) and anomaly detection (41%).
AI governance, trust, and security
One in four business leaders believes that improving governance and trust in AI should be their top priority.
– For leaders responsible for data governance, the two main areas of concern regarding AI reliability are related to data quality and predictability (50%) and data privacy (45%).
– More than two-thirds (69%) of AI-based decisions still include processes with human intervention to verify accuracy.
– Almost all (98%) business leaders reported using Artificial Intelligence to manage security compliance in some way, with 69% noting an increase in budgets for AI-based threat detection last year and expecting an increase in budgets next year.
“Enterprise IT software and applications must evolve from simply adding Artificial Intelligence to existing systems to creating truly AI-native experiences,” says Alois Reitbauer, Chief Technology Strategist at Dynatrace. “This shift brings new challenges for observability, as organizations must ensure their AI-based systems are transparent, reliable, and scalable. Observability becomes the fundamental basis, providing the shared intelligence needed to meet these challenges, make smarter decisions, and promote safe and efficient automation at scale.”
Other findings of the report include:
More than 50% of business leaders believe that automated, real-time observability solutions will improve the customer experience in the coming year.
46% of business leaders believe that the greatest ROI from AI-based observability will come from optimizing the settings of AI models.
– By 2030, 50% of business leaders expect to have adopted AI-based data encryption, risk assessment, and threat detection capabilities.
– 70% of respondents say that budgets for observability have increased in the last year, and three-quarters (75%) expect budgets to increase in the next fiscal year.
“Observability is shifting from reporting telemetry about application health to informing the decisions that drive business,” adds Reitbauer. “As more of these decisions are supported by AI, observability becomes key to unlocking the full potential of AI-driven decision support, providing the trusted context, safeguards, and feedback loops that leaders need to act confidently at scale.”
Download the full report at “The State of Observability Report 2025: Why observability is becoming the control plane for AI-powered enterprise transformation”.
Methodology
This report is based on a global survey conducted by Qualtrics and commissioned by Dynatrace with 842 CIOs, CTOs, and other senior technology leaders involved in IT operations and DevOps management at large enterprises with annual revenue equal to or greater than US$100 million. The sample included 206 respondents in the United States, 125 in Germany, 129 in France, 130 in Spain, 128 in Italy, and 124 in Japan.
Additional Resources
About Dynatrace
Dynatrace is powering observability for today’s digital businesses, helping transform the complexity of modern digital ecosystems into powerful business assets. By leveraging AI-powered insights, Dynatrace enables organizations to analyze, automate, and innovate faster to drive their business forward. To learn more about how Dynatrace can help businesses, visit www.dynatrace.com, visit our blog and follow us on LinkedIn and in X @dynatraceTo learn how you can simplify the cloud and maximize the impact of digital teams, take a free 15-day trial.
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