Observability & Cost

Know what your AI system is doing and what it costs

🔑 Key Concepts

Structured logging — Every request: request ID, model, tokens, latency, cost, success/failure. JSON format for easy parsing.
LLM cost tracking — Per feature (RAG, chat, summary), per user, per day. You can't optimise what you don't measure.
Dashboards — Grafana or Langfuse for latency, error rate, token usage, cost. Alert on cost spikes and error increases.
LiteLLM proxy — Route all LLM calls through LiteLLM. One dashboard for all providers. Logs every call with cost.

💡 Practice: Try implementing each concept yourself before moving on. Reading about RAG and building RAG are very different things.