Splunk Report Shows Observability is a Business Catalyst for AI Adoption, Customer Experience, and Product Innovation

Core Insights - The 2025 Splunk State of Observability report emphasizes the importance of observability in driving business value, enhancing customer experience, and informing strategic decisions [2][3][4] Observability's Impact on Business - 74% of respondents report that observability positively impacts employee productivity, while 65% indicate it drives revenue growth [7] - Observability is crucial for monitoring critical business processes, with 74% believing it is essential for understanding user journeys [7] - Organizations leveraging observability insights are better positioned to make informed decisions regarding customer engagement strategies and product roadmaps [4][6] Challenges in the AI Era - 59% of ITOps and engineering teams face challenges due to disparate tools, and 52% struggle with a high volume of false alerts [4][5] - 76% of respondents utilize AI-powered observability in their workflows, but 47% find monitoring AI workloads has increased job complexity [5][6] Adoption of OpenTelemetry - OpenTelemetry has become the industry standard for data collection, enabling richer data collection with less technical debt [10][11] - Organizations adopting OpenTelemetry report significant improvements in employee productivity, customer experience, and overall business outcomes [11][15] Observability Leaders - "Observability leaders" achieve better business outcomes, with a reported annual ROI of 125% from observability practices, which is 53% higher than non-leaders [15] - These leaders are more likely to adopt innovative practices and foster collaboration between observability and security teams [11][15]