AI Observability is Expensive Voyeurism

The observability market is selling you dashboards to watch your AI fail in high resolution. What you need is controllability.

Contents

You can see the car crash frame by frame. You just can’t grab the wheel.


The AI observability market is booming.

Dozens of startups will sell you dashboards to monitor your LLM applications. Token counts. Latency distributions. Cost breakdowns. Prompt traces. Response quality scores.

You can watch everything your AI does, in beautiful real-time visualizations, with alerting and anomaly detection and historical trending.

And when something goes wrong, you can watch it go wrong. In high resolution. With timestamps.

What you can’t do is stop it.

The Observability-Controllability Gap

Traditional software observability makes sense. You observe, you understand, then you act. The action part is straightforward - roll back a deployment, scale up capacity, fix a bug in code.

AI systems break this model.

flowchart LR
    subgraph "Traditional Software"
        O1[Observe Problem] --> U1[Understand Cause]
        U1 --> A1[Act on Code/Config]
        A1 --> F1[Fix Deployed]
    end

    subgraph "AI Systems"
        O2[Observe Problem] --> U2[Understand... Maybe?]
        U2 --> A2[Act on... What?]
        A2 -->|"???"| F2[Fix Deployed?]
    end

    style A2 fill:#fee2e2
    style F2 fill:#fee2e2

When your LLM misbehaves, what’s your remediation path?

  • Change the prompt? Takes time to iterate, test, and deploy. Meanwhile, the problem continues.
  • Retrain the model? Even longer. And you probably can’t anyway if it’s a third-party model.
  • Add a filter? Reactive and brittle. The next failure will be slightly different.
  • Roll back? To what? The model itself didn’t change - the inputs did.

The observability gives you visibility into a system you can’t actually control in real-time.

What Your Observability Dashboard Tells You

Let’s be concrete. Here’s what a typical AI observability setup provides:

Metric What It Tells You What You Can Do
Latency spike Requests are slow Wait, or pay for faster tier
Cost increase Spending more money Spend less (but how?)
Quality score drop Outputs getting worse Investigate (not fix)
Hallucination detected Model made something up The user already saw it
Toxicity alert Model said something bad The user already saw it
Drift warning Behavior is changing Watch it continue

Notice the pattern? Observability tells you what happened. It doesn’t let you change what happens.

By the time you see the hallucination alert, the user has already received the hallucinated response. By the time you notice the drift, the model has already been drifting for days or weeks. By the time you see the cost spike, you’ve already spent the money.

Observability without controllability is a very expensive rear-view mirror.

The Real Problem: No Control Plane

Traditional infrastructure has control planes. Kubernetes doesn’t just observe pods - it creates, destroys, and reconfigures them. Load balancers don’t just observe traffic - they route it. Circuit breakers don’t just observe failures - they stop cascades.

AI systems, as typically deployed, lack this control layer.

flowchart TB
    subgraph "Traditional Infrastructure"
        direction LR
        CP1[Control Plane] -->|"Create/Destroy/Configure"| WL1[Workloads]
        MON1[Monitoring] -->|"Feeds into"| CP1
    end

    subgraph "Typical AI Stack"
        direction LR
        MON2[Observability] -->|"Reports to"| DASH[Dashboard]
        DASH -->|"Human reads"| HUMAN[Human]
        HUMAN -->|"Manually tweaks"| APP[AI Application]
    end

    subgraph "What's Missing"
        direction LR
        MON3[Observability] -->|"Triggers"| CP3[AI Control Plane]
        CP3 -->|"Adjusts in real-time"| AI[AI Behavior]
    end

    style CP3 fill:#dcfce7
    style DASH fill:#fee2e2
    style HUMAN fill:#fee2e2

The gap isn’t visibility. It’s the ability to act on what you see, in real-time, automatically.

What Controllability Actually Looks Like

If observability is watching, controllability is intervening. Here’s what a real AI control plane enables:

Runtime Behavior Adjustment

When you detect a problem, you should be able to adjust model behavior immediately - without retraining, without redeploying, without waiting for a human to rewrite prompts.

Steering vectors make this possible. You can shift model outputs along interpretable dimensions (more formal, less verbose, more cautious) at inference time.

flowchart LR
    subgraph "Without Controllability"
        I1[Input] --> M1[Model]
        M1 --> O1[Problematic Output]
        O1 --> U1[User Sees Problem]
        U1 -.->|"Hours/days later"| P1[Prompt Revision]
        P1 -.->|"Deploy"| M1
    end

    subgraph "With Controllability"
        I2[Input] --> M2[Model]
        M2 --> SV[Steering Vector]
        SV --> O2[Adjusted Output]
        O2 --> U2[User Sees Corrected]
    end

    style O1 fill:#fee2e2
    style U1 fill:#fee2e2
    style SV fill:#dcfce7
    style O2 fill:#dcfce7

Automatic Fallbacks

When quality degrades below a threshold, the system should automatically route to a fallback - a different model, a cached response, a human escalation - without manual intervention.

Dynamic Guardrails

Guardrails shouldn’t be static filters bolted on after the fact. They should be dynamic policies that adjust based on context, user trust level, and observed behavior.

Rate-Responsive Routing

When costs spike, the system should automatically route lower-priority requests to cheaper models. When latency matters, it should route to faster options. These decisions should happen per-request, not per-deployment.

The Vendor Landscape Problem

The AI observability market has exploded because observability is easy to build and easy to sell.

  • It doesn’t require deep model integration
  • It works with any LLM provider
  • It provides immediate, visible value (pretty dashboards)
  • It doesn’t require customers to change their architecture

Controllability is harder.

  • It requires integration at the inference layer
  • It requires new abstractions (steering vectors, control planes)
  • It requires customers to think differently about AI architecture
  • The value is harder to demo (preventing problems is invisible)

So the market has optimized for observability vendors, leaving a controllability gap.

This is a market gap, not a feature. You shouldn’t have to buy observability and then figure out controllability separately.

The Synthesis: Observe to Control

Observability isn’t useless. It’s incomplete.

The right architecture uses observability as input to a control plane. You observe to understand. You understand to act. The action happens automatically, in real-time, before users see problems.

flowchart TB
    subgraph "Observation Layer"
        L[Logging] --> A[Aggregation]
        T[Tracing] --> A
        M[Metrics] --> A
    end

    subgraph "Analysis Layer"
        A --> AD[Anomaly Detection]
        A --> QS[Quality Scoring]
        A --> DR[Drift Recognition]
    end

    subgraph "Control Layer"
        AD --> CP[Control Plane]
        QS --> CP
        DR --> CP
        CP --> SV[Steering Vectors]
        CP --> RT[Routing Decisions]
        CP --> GR[Guardrail Adjustment]
        CP --> FB[Fallback Triggers]
    end

    subgraph "Execution Layer"
        SV --> INF[Inference]
        RT --> INF
        GR --> INF
        FB --> INF
    end

    style CP fill:#dbeafe
    style SV fill:#dcfce7
    style RT fill:#dcfce7
    style GR fill:#dcfce7
    style FB fill:#dcfce7

This is closed-loop control. Observation feeds analysis. Analysis feeds decisions. Decisions feed action. Action happens before the user is affected.

What We Built

At Rotascale, we were frustrated by the observability-only landscape. Guardian provides monitoring and anomaly detection - that’s table stakes. But it’s integrated with Steer for runtime control and with our routing layer for automatic fallbacks.

When Guardian detects drift, it doesn’t just alert you. It can automatically apply steering vectors to compensate, route to a more stable model, or escalate to human review - depending on policies you define.

That’s not observability. That’s control.

The Bottom Line

If your AI operations strategy is “deploy observability and react to dashboards,” you’re building an expensive notification system.

The question isn’t “can I see what my AI is doing?” The question is “can I change what my AI is doing, in real-time, before users are affected?”

Observability without controllability is voyeurism. You’re watching the system fail, in high definition, with no ability to intervene.

Build the control plane. Then the observability becomes useful.


Observation without control is voyeurism. Build systems that can act on what they see.


Ready for controllability, not just observability? Guardian + Steer provide closed-loop AI control - detect problems and fix them automatically. See how it works.

Share this article

Stay ahead of AI governance

Get insights on enterprise AI trust, agentic systems, and production architecture delivered to your inbox.

Subscribe

Related Articles