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.
- 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
- Models
- Observability tools
- 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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