Stacks/Agent platform / infrastructure

Datadog's Insights agent, tuned by its own traces

Datadog points its Agent Observability Insights at the agent that powers Insights. Traces showed oversized search results re-sent to the model, a prompt layout that defeated caching (projected at about $2,734 a month in savings, not yet measured), and failing tool calls. Fixes go to a coding agent that opens a tested PR, then get validated by replaying investigations.

Alex Barksdale, Miguel Tulla Lizardi, and Zhengda LuPublished Oct 30, 2026Last verified Nov 13, 2026
Use case
The agent behind Datadog Agent Observability Insights, which analyzes agent traces to find cost and reliability problems; Datadog uses Insights on that agent's own traces to cut tokens and fix failing tool calls
Category
Agent platform / infrastructure
Team size
not stated
Orchestrator / framework
The agent investigates recorded traces with search tools and a skill loader that returns exact resource names. Findings can be passed via 'Fix with Bits' to a coding agent, which changes the code, adds tests, and opens a PR.
Memory
not stated
Evals
Fixes are validated by replaying affected investigations and comparing tool output size, model tokens, and answer quality; resource-name fixes are checked by replaying the affected turns.
Observability
Datadog Agent Observability traces every run; Insights flagged ~80,000 tokens of search results re-sent across two runs, poor prompt-cache reuse (task details placed before tool definitions), a tool call retried four times over ~18 minutes, and guessed resource names across 193 sessions.
Cost (stated in writeup)
Not stated
Cost per output (stated)
Not stated in the writeup
WhatWeRun estimate

WhatWeRun estimate

Not enough info to estimate

The post doesn't name the model or give run volume; the $2,734/month figure is a projected saving, not the agent's cost.

Reviewed Nov 13, 2026

Other tools
Bits (coding agent, 'Fix with Bits')
Source
https://www.datadoghq.com/blog/improving-insights-agent-observability/

Alex Barksdale, Miguel Tulla Lizardi, and Zhengda Lu · Published Oct 30, 2026 · Last verified Nov 13, 2026

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