The autonomous software revolution is coming. At Transform 2025, Ashan Willy, CEO of New Relic and Sam Witteveen, CEO and co-founder of Red Dragon AI, talked about how they’re instrumenting agentic systems for measurable ROI and charting the infrastructure roadmap to maximize agentic AI.
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New Relic provides observability to customers by capturing and correlating application, log, and infrastructure telemetry in real time. Observability goes beyond monitoring — it’s about equipping teams with the context and insight needed to understand, troubleshoot, and optimize complex systems, even in the face of unexpected issues. Today that’s become a considerably more complex undertaking now that generative and agentic AI are in the mix. And observability for the company now includes monitoring everything from Nvidia NIM, DeepSeek, ChatGPT and so on — use of its AI monitoring is up roughly 30%, quarter over quarter, reflecting the acceleration of adoption.
“The other thing we see is a huge diversity in models,” Willy said. “Enterprises started with GPT, but are starting to use a whole bunch of models. We’ve seen about a 92% increase in variance of models that are being used. And we’re starting to see enterprises adopt more models. The question is, how do you measure the effectiveness?”
Observability in an agentic world
In other words, how is observability evolving? That’s a big question. The use cases vary wildly across industries, and the functionality is fundamentally different for each individual company, depending on size and goals. A financial firm might be focused on maximizing EBITDA margins, while a product-focused company is measuring speed to market alongside quality control.
When New Relic was founded in 2008, the center of gravity for observability was application monitoring for SaaS, mobile, and then eventually cloud infrastructure. The rise of AI and agentic AI is bringing observability back to applications, as agents, micro-agents, and nano-agents are running and producing AI-written code.
AI for observability
As the number of services and microservices rises, especially for digitally native organizations, the cognitive load for any human handling observability tasks becomes ov …