Datadog's LLM Monitoring Insights

During the Third Quarter 2023 Earnings Conference Call of Datadog, CEO Olivier Pomel discussed various aspects of the company's performance and strategic initiatives. One of the key points he highlighted was their excitement and efforts around generative AI and large language models (LLMs). Pomel mentioned that they are continuing to invest in integrating with more components at every layer of the new AI stack and developing their own LLM observability products. He noted that while signs of AI adoption are visible across a large part of their customer base, it is primarily concentrated among AI-native customers, who contributed about 2.5% of their ARR for the quarter.

Pomel emphasized that in the mid to long term, they expect customers from all industries and sizes to add value to their products using AI and move from early exploration to development and into production. This transition is anticipated to drive larger cloud and observability usage across Datadog's customer base. Additionally, they see opportunities to enhance their platform using AI, and they are working on productizing this value through capabilities such as the Bits AI assistant, AI-generated synthetic tests, and AI-led error analysis and resolution.

For more detailed information, you can refer to the Datadog Third Quarter 2023 Earnings Conference Call Transcript.