Cisco Splunk: AI agents sharply raise telemetry costs

Cisco Splunk's State of Observability 2026 report found 57% of organizations spend more on observability than on the infrastructure they monitor, and 55% cannot accurately control AI expenses. A production agent emits 4–5x more telemetry, and 38% have already cut data collection, creating blind spots.

• 57% of organizations spend more on observability than on the monitored infrastructure
• A single production AI agent emits 4–5x more telemetry
• 55% cannot accurately control their AI expenses
• 38% cut telemetry coverage or retention to save costs