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Observability

Important

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As organizations increasingly rely on distributed architectures and a wide array of endpoint and workload agents, maintaining visibility and control over these agents is critical. Effective agent monitoring helps IT and security professionals to ensure robust security, regulatory compliance, and operational resilience. This article provides an overview of agent observability, its benefits, and the roles of key stakeholders.

Observability and Agent 365

Agent 365 is Microsoft’s unified platform for managing AI agents built across Microsoft Copilot Studio, Azure Foundry, and third-party runtimes. As organizations scale their use of autonomous agents, robust observability becomes essential for security, compliance, and auditability.

Agent 365 introduces advanced observability capabilities designed to support enterprise-grade agent governance. Integrating with the Observability SDK is more than a technical requirement; it’s a strategic move that allows full transparency, security, and accountability across the agent lifecycle.

This integration gives you deep visibility and control, supports proactive governance, enforces security standards, and builds scalable trust in autonomous systems.

Benefits of Observability SDK integration

  • Security and threat detection: Seamlessly integrates with Microsoft Defender to identify anomalies, misuse, and risky behaviors early, helping reduce exposure to threats and strengthen agent security posture.

  • Governance and compliance: Monitors agent identity, tool usage, and AI model interactions to enforce enterprise policies and streamline audit readiness, ensuring agents operate within regulatory and organizational boundaries.

  • Lifecycle control and certification readiness: Ensures agents meet Agent 365 certification standards by allowing traceability and observability from development to deployment.

  • Business impact metrics: Provides actionable insights into agent productivity, time savings, and interaction quality—empowering business leaders to measure return on investment and make informed decisions.