Merge's article on MCP observability emphasizes the importance of monitoring AI agents' interactions with Model Context Protocol (MCP) servers to ensure secure, compliant, and reliable performance. MCP observability involves tracking tool calls, maintaining audit trails, and setting alerts for potentially harmful actions, thereby minimizing security risks and aiding compliance with data privacy regulations. It also optimizes agent performance by providing insights into tool call efficiency and identifying problematic MCP servers. The article outlines best practices such as setting severity-based policies, testing MCP servers, and outsourcing observability tooling to solutions like Merge Agent Handler, which offer customizable features to streamline monitoring processes. Jon Gitlin, Merge's Senior Content Marketing Manager, highlights how these practices help engineers focus on core tasks while non-technical teams gain the tools needed to oversee agent activities effectively.