Observe offers a modern approach to observability by leveraging AI and data lakes to address the challenges of traditional monitoring systems, which struggle with escalating costs and complexity due to data overload. Traditional tools like Splunk and Datadog face limitations as they require expensive indexing and result in blind spots due to excessive data collection and retention issues. The new approach advocated by Observe involves using data lakes to store logs, metrics, and traces centrally and affordably, allowing on-demand querying and reducing the need for aggressive data filtering. This model supports the use of AI to enhance troubleshooting by providing meaningful insights and pattern recognition across different data types, moving away from the fragmented, indexing-first model. This shift aims to empower engineers by simplifying workflows and reducing the burden of managing observability data, marking a transition towards more efficient and context-rich troubleshooting processes.