LLM observability in 2026: why OpenTelemetry and evals must run together
A short technical guide for SREs and AI engineers: why LLM observability is different, what to cover with tracing and metrics, and when to add online evals without making them another silo.
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4 chaptersChapter 01
Why monitoring an LLM is not monitoring a microservice
A microservice can be judged on three numbers: latency, error rate, throughput. An LLM has three additional axes that matter: cost (per token, not per request), subjective quality (whether output is useful), and drift (the same question may produce a different answer tomorrow).
- Token tracking per request: input, output, and total — and how it maps to USD.
- Decomposed latency: prompt processing vs decode vs tool-use overhead.
- Quality: human acceptance, prompt rewrite, session abandonment.
- Drift: output variation on the same input over time.
Chapter 02
OpenTelemetry + GenAI semantic conventions: the standard baseline
OTel's GenAI Semantic Conventions define common span attributes for LLM calls: model, tokens, cost, tools invoked, embedding used, RAG hit rate. That means your instrumentation is portable: today to Datadog, tomorrow to New Relic, without rewriting.
- OpenLLMetry (Traceloop) extends OTel for LLMs with non-intrusive instrumentation.
- Compatible with Datadog, New Relic, Sentry, Honeycomb, and Grafana Cloud.
- LangSmith and Confident AI add a quality layer on top of tracing.
- Avoid single-vendor proprietary instrumentation — bet on OTel.
Chapter 03
When to add online evals (and how not to make them a silo)
Online evaluation means running automatic evaluators over traces to flag problematic responses and filter them to a test set. It doesn't replace humans, but it lets you spot issues at scale.
- Start with tracing and metrics. Only after a stable quarter, add online evals.
- Hook evaluators into the same OTel backend — don't build a separate dashboard.
- Use LLM-as-judge only for cases where you trust its consistency.
- Auto-curate the test set: flagged samples become future regression cases.
Chapter 04
Minimum checklist for production LLMs
If your LLM-backed system is going to take real traffic, before you expose it make sure these six points are covered. If one is missing, you'll learn it the expensive way.
- Traces with OTel + GenAI semantic conventions, exported to your backend.
- Cost metrics per feature/user/customer, alerts with caps and rate limit.
- PII redaction in logs — the “debug log” can turn into a breach.
- Replay capability: ability to reconstruct any call with its prompt and context.
- Per-feature kill-switch, not only for the whole service.
- Runbook with typical scenarios: drift, cost spike, quality regression.
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