Dynatrace Inc., a leading AI-powered observability platform, has released its State of Observability Report 2025, highlighting key trends in AI adoption and the evolving role of observability in large enterprises. Based on a global survey of 842 CIOs, CTOs, and senior technology leaders from organizations with annual revenues exceeding $100 million, the report reveals that AI is now widely integrated into business operations, with 100% of respondents using AI in areas such as data management, AI governance, and security operations. The findings indicate that concerns over reliability and trust are driving increased investment in observability solutions, with 70% of organizations expanding their observability budgets in the past year. Business leaders see the greatest return on investment from AI-powered observability in optimizing AI model configurations and enhancing real-time detection and response to security risks. Additionally, over half of respondents expect automated, real-time observability to significantly improve customer experience within the next year. The report underscores the need for AI-native experiences and highlights the importance of transparency, reliability, and scalability in AI-driven systems. Improving AI governance and trust has emerged as a top priority for one in four business leaders, signaling a shift toward safer and more efficient automation at scale across the enterprise landscape.