Generative AI, renowned for its ability to generate diverse content such as text, images, and music, presents challenges in monitoring and optimization, which traditional observability tools struggle to address. Grafana Labs offers a solution through its AI Observability feature in Grafana Cloud, leveraging OpenLIT, an open-source SDK designed for monitoring generative AI systems. This integration allows users to track model performance, optimize costs, and trace data flow comprehensively while offering insights into AI models' nuances via a unified interface. It benefits AI engineers, data scientists, and DevOps professionals by enhancing the reliability and efficiency of generative AI applications. With easy setup and auto-instrumentation for over 30 generative AI tools, including LLMs and various frameworks, the AI Observability feature integrates seamlessly with existing systems, adhering to industry observability standards. Users can monitor metrics such as request rates, costs, and latency, allowing for informed optimizations, and can easily access detailed traces and request information to refine their AI implementations.