AI observability has become crucial as AI applications transition from experimental to production stages, necessitating a comprehensive understanding of the inner workings of these systems. Unlike traditional observability, which was designed for predictable systems, AI observability must account for the dynamic and multi-layered nature of modern AI systems, including models, agents, and tools. AI observability involves tracking prompts, context, model performance, decision flows, and compliance with guardrails to ensure reliability, safety, and cost efficiency. Portkey stands out as a leading platform in AI observability by providing a unified view across all layers and supporting major agent frameworks, enabling enterprises to manage their AI systems effectively and responsibly. Its recognition in the 2025 Gartner® Cool Vendors™ in LLM Observability underscores its role in delivering comprehensive visibility and governance for AI operations. As AI systems grow in complexity, observability is essential for maintaining performance and trust, with platforms like Portkey offering a complete stack for production-ready AI applications.