OpenTelemetry and SigNoz used to trace AI agent execution steps in Python

Your AI Agent Is a Black Box—Until OpenTelemetry & SigNoz Step In

We’ve all been there. You build an AI agent, give it a sophisticated prompt, hook it up to a couple of external APIs, and let it run. It works beautifully in five consecutive tests. Then, on the sixth run, it loops endlessly, calls an LLM twenty times, drains your API credit balance, and returns an empty string. Debugging traditional applications is straightforward—you look at the stack trace. But debugging autonomous AI agents? That feels like trying to read a mind. Because LLM calls are non-deterministic and agent loops can branch dynamically, standard log files just don't cut it anymore. If you want to build production-ready AI applications without flying blind, you need distributed tracing. In this guide, we will step through how to set up the open-source APM tool SigNoz locally, instrument a Python AI agent using the standard OpenTelemetry library, and inspect nested spans to figure out exactly what’s happening under the hood. The Problem: The Non-Deterministic AI Black Box A typical AI agent works by executing a cycle of actions: Retrieve: querying a Vector Database (like Chroma or pgvector) for relevant context. Reason: sending the query and context to an LLM (like GPT-4 or Claude) to decide what tool to run. Act: running local tools (e.g., executing Python calculations, searching the web, querying databases). Synthesize: sending the tool output back to the LLM to generate the final response. If a step fails or is slow, standard logs only show the end state or print raw, unorganized strings. You can't easily see: How much latency was added by the Vector DB versus the LLM itself? What exact prompt was sent to the LLM during the intermediate reasoning step? How many tokens were consumed, and what was the actual API cost of that single execution? Which tool invocation caused the agent loop to raise an exception? The Solution: OpenTelemetry + SigNoz By using OpenTelemetry (OTel), the industry standard for vendor-neutral observability, we can instrument every phase of our agent's lifecycle. Each phase is represented as a Span, and the entire execution path is linked together into a Trace. To visualize these traces, we use SigNoz, a high-performance, open-source application performance monitoring (APM) system built on ClickHouse. SigNoz provides a unified dashboard for metrics, traces, and logs, making it the perfect developer-friendly alternative to expensive SaaS platforms. Step 1: Spin Up SigNoz Locally The easiest way to run SigNoz locally is using the SigNoz Foundry CLI (foundryctl). First, install the CLI: curl -fsSL https://signoz.io/foundry.sh | bash Next, generate the deployment configuration: foundryctl forge Finally, start the SigNoz services using Docker Compose: foundryctl cast This starts ClickHouse, the query-service, the frontend UI, and the Otel-Collector. The dashboard will be accessible at http://localhost:8080. (Note: On the first start, you will register your admin credentials at http://localhost:8080 to initialize the system.) Step 2: Instrumenting the AI Agent in Python Let's build a Python script (agent.py) simulating our agentic workflow. We'll instrument each step using OpenTelemetry's Tracer. 1. Install Dependencies pip install opentelemetry-api opentelemetry-sdk opentelemetry-exporter-otlp 2. The Instrumentation Code (agent.py) Here is the code representing the instrumented AI Agent. It creates a root span agent_run and nesting spans for the database lookup, reasoning, tool execution, and final synthesis. It also records metadata like model names, token counts, and token costs directly as span attributes. import time import random from opentelemetry import trace from opentelemetry.sdk.trace import TracerProvider from opentelemetry.sdk.trace.export import SimpleSpanProcessor from opentelemetry.sdk.resources import Resource from opentelemetry.exporter.otlp.proto.grpc.trace_exporter import OTLPSpanExporter # 1. Initialize Tracer Provider with Resource Attributes resource = Resource.create(attributes={ "service.name": "ai-agent-service", "service.version": "1.0.0", "environment": "production", "project": "SigNoz-Hackathon" }) provider = TracerProvider(resource=resource) # 2. Connect the OTLP Exporter to our local SigNoz Otel-Collector (gRPC on port 4317) otlp_exporter = OTLPSpanExporter(endpoint="http://localhost:4317", insecure=True) span_processor = SimpleSpanProcessor(otlp_exporter) provider.add_span_processor(span_processor) trace.set_tracer_provider(provider) tracer = trace.get_tracer("ai-agent-tracer") # --- Agent Tasks/Steps --- def vector_db_lookup(query): with tracer.start_as_current_span("vector_db_search") as span: span.set_attribute("db.system", "chromadb") span.set_attribute("db.operation", "similarity_search") span.set_attribute("db.query", query) # Simulate query latency time.sleep(random.uniform(0.1, 0.3)) span.set_attribute("db.result.count", 3) return ["AI agents need tracing", "OpenTelemetry standardizes observability", "SigNoz visualizes spans"] def llm_reasoning(prompt, context): with tracer.start_as_current_span("llm_reasoning") as span: span.set_attribute("llm.provider", "openai") span.set_attribute("llm.model", "gpt-4o") span.set_attribute("llm.prompt", prompt) # Simulate token counts prompt_tokens = len(prompt.split()) + len(str(context).split()) completion_tokens = random.randint(150, 300) span.set_attribute("llm.usage.prompt_tokens", prompt_tokens) span.set_attribute("llm.usage.completion_tokens", completion_tokens) span.set_attribute("llm.usage.total_tokens", prompt_tokens + completion_tokens) # Calculate simulated costs cost = (prompt_tokens * 2.5 + completion_tokens * 10) / 1_000_000 span.set_attribute("llm.cost", cost) time.sleep(random.uniform(1.2, 2.5)) # LLM latency return "Reasoning: We must execute the math calculator tool to verify the cost." def tool_execution(tool_name, arguments): with tracer.start_as_current_span("tool_execution") as span: span.set_attribute("tool.name", tool_name) span.set_attribute("tool.arguments", str(arguments)) try: time.sleep(random.uniform(0.3, 0.8)) # Tool latency if tool_name == "calculator": result = str(eval(arguments)) span.set_attribute("tool.status", "success") span.set_attribute("tool.output", result) return result else: raise ValueError(f"Unknown tool: {tool_name}") except Exception as e: # Capture exceptions inside spans automatically span.record_exception(e) span.set_status(trace.StatusCode.ERROR, str(e)) raise def llm_synthesis(reasoning, tool_result): with tracer.start_as_current_span("llm_synthesis") as span: span.set_attribute("llm.provider", "openai") span.set_attribute("llm.model", "gpt-4o") prompt_tokens = len(reasoning.split()) + len(tool_result.split()) completion_tokens = random.randint(80, 150) span.set_attribute("llm.usage.prompt_tokens", prompt_tokens) span.set_attribute("llm.usage.completion_tokens", completion_tokens) span.set_attribute("llm.usage.total_tokens", prompt_tokens + completion_tokens) cost = (prompt_tokens * 2.5 + completion_tokens * 10) / 1_000_000 span.set_attribute("llm.cost", cost) time.sleep(random.uniform(0.8, 1.5)) return "Final Answer: The calculation is complete and verified." # --- Main Agent Loop --- def run_agent(query): # Establish a parent context span for the entire execution with tracer.start_as_current_span("agent_run") as span: span.set_attribute("agent.query", query) print(f"[*] Starting agent with query: {query}") # 1. DB Lookup context = vector_db_lookup(query) print("[+] Vector DB lookup done.") # 2. LLM Reasoning reasoning = llm_reasoning(query, context) print("[+] LLM reasoning done.") # 3. Tool Execution try: tool_res = tool_execution("calculator", "125 * 8") print(f"[+] Calculator tool returned: {tool_res}") except Exception as e: print(f"[-] Tool error: {e}") tool_res = "Error" # 4. Final LLM Synthesis final_answer = llm_synthesis(reasoning, tool_res) print(f"[+] Final synthesis: {final_answer}") span.set_attribute("agent.status", "completed") if __name__ == "__main__": print("[*] Generating AI Agent execution traces...") for i in range(10): run_agent(f"Calculate total token cost for query batch #{i+1}") time.sleep(1) # Flush tracer provider to ensure all spans reach SigNoz provider.shutdown() print("[*] All traces exported successfully.") Step 3: Run the Agent Run the script to populate SigNoz with fresh telemetry: python3 agent.py You will see output indicating that all steps are running synchronously and sending trace batches directly to the local collector. Step 4: Visualizing Agent Traces in SigNoz Open the SigNoz dashboard by navigating to http://localhost:8080 in your web browser. Service Overview: On the Services page, you will see ai-agent-service listed. It calculates latency metrics, throughput (request rates), and error rates automatically based on the incoming traces. Trace List: Navigate to the "Traces" tab, filter by service ai-agent-service, and search. You will see a list of the 10 distinct agent_run execution flows. Trace Waterfall Diagram: Click on any of the traces to see the nested execution. You will see the main agent_run span representing the overall execution time. Nested inside it are vector_db_search, llm_reasoning, tool_execution, and llm_synthesis. Clicking on individual spans exposes the custom metadata attributes. For example, clicking llm_reasoning displays the input prompt, token usage, model (gpt-4o), and estimated API cost. If a tool fails or throws an exception, the tool_execution span turns red and displays the full traceback under the exceptions tab. Conclusion: Observability is Prerequisite for Production AI AI Agents are highly dynamic, stateful, and non-deterministic. Without tracing, they are black boxes that are incredibly hard to optimize or audit. By integrating OpenTelemetry and SigNoz, you gain deep insights into your agent's internals: Pinpoint exactly where latency is coming from. Keep track of tokens and compute costs per agent run. Debug tool and database failures instantly. observability is the key to scaling your AI agents from proof-of-concepts to robust, production-grade applications.

2 hours ago

# Peek Inside the Black Box: Why Your AI Agent Needs OpenTelemetry and SigNoz

We’ve all been there. You build an AI agent, give it a sophisticated prompt, hook it up to a couple of external APIs, and let it run. It works beautifully in five consecutive tests. Then, on the sixth run, it loops endlessly, calls an LLM twenty times, drains your API credit balance, and returns an empty string. Debugging traditional applications is straightforward—you look at the stack trace. But debugging autonomous AI agents? That feels like trying to read a mind. Because LLM calls are non-deterministic and agent loops can branch dynamically, standard log files just don't cut it anymore. If you want to build production-ready AI applications without flying blind, you need distributed tracing. In this guide, we will step through how to set up the open-source APM tool SigNoz locally, instrument a Python AI agent using the standard OpenTelemetry library, and inspect nested spans to figure out exactly what’s happening under the hood. The Problem: The Non-Deterministic AI Black Box A typical AI agent works by executing a cycle of actions: Retrieve: querying a Vector Database (like Chroma or pgvector) for relevant context. Reason: sending the query and context to an LLM (like GPT-4 or Claude) to decide what tool to run. Act: running local tools (e.g., executing Python calculations, searching the web, querying databases). Synthesize: sending the tool output back to the LLM to generate the final response. If a step fails or is slow, standard logs only show the end state or print raw, unorganized strings. You can't easily see: How much latency was added by the Vector DB versus the LLM itself? What exact prompt was sent to the LLM during the intermediate reasoning step? How many tokens were consumed, and what was the actual API cost of that single execution? Which tool invocation caused the agent loop to raise an exception? The Solution: OpenTelemetry + SigNoz By using OpenTelemetry (OTel), the industry standard for vendor-neutral observability, we can instrument every phase of our agent's lifecycle. Each phase is represented as a Span, and the entire execution path is linked together into a Trace. To visualize these traces, we use SigNoz, a high-performance, open-source application performance monitoring (APM) system built on ClickHouse. SigNoz provides a unified dashboard for metrics, traces, and logs, making it the perfect developer-friendly alternative to expensive SaaS platforms. Step 1: Spin Up SigNoz Locally The easiest way to run SigNoz locally is using the SigNoz Foundry CLI (foundryctl). First, install the CLI: curl -fsSL https://signoz.io/foundry.sh | bash Next, generate the deployment configuration: foundryctl forge Finally, start the SigNoz services using Docker Compose: foundryctl cast This starts ClickHouse, the query-service, the frontend UI, and the Otel-Collector. The dashboard will be accessible at http://localhost:8080. (Note: On the first start, you will register your admin credentials at http://localhost:8080 to initialize the system.) Step 2: Instrumenting the AI Agent in Python Let's build a Python script (agent.py) simulating our agentic workflow. We'll instrument each step using OpenTelemetry's Tracer. 1. Install Dependencies pip install opentelemetry-api opentelemetry-sdk opentelemetry-exporter-otlp 2. The Instrumentation Code (agent.py) Here is the code representing the instrumented AI Agent. It creates a root span agent_run and nesting spans for the database lookup, reasoning, tool execution, and final synthesis. It also records metadata like model names, token counts, and token costs directly as span attributes. import time import random from opentelemetry import trace from opentelemetry.sdk.trace import TracerProvider from opentelemetry.sdk.trace.export import SimpleSpanProcessor from opentelemetry.sdk.resources import Resource from opentelemetry.exporter.otlp.proto.grpc.trace_exporter import OTLPSpanExporter # 1. Initialize Tracer Provider with Resource Attributes resource = Resource.create(attributes={ "service.name": "ai-agent-service", "service.version": "1.0.0", "environment": "production", "project": "SigNoz-Hackathon" }) provider = TracerProvider(resource=resource) # 2. Connect the OTLP Exporter to our local SigNoz Otel-Collector (gRPC on port 4317) otlp_exporter = OTLPSpanExporter(endpoint="http://localhost:4317", insecure=True) span_processor = SimpleSpanProcessor(otlp_exporter) provider.add_span_processor(span_processor) trace.set_tracer_provider(provider) tracer = trace.get_tracer("ai-agent-tracer") # --- Agent Tasks/Steps --- def vector_db_lookup(query): with tracer.start_as_current_span("vector_db_search") as span: span.set_attribute("db.system", "chromadb") span.set_attribute("db.operation", "similarity_search") span.set_attribute("db.query", query) # Simulate query latency time.sleep(random.uniform(0.1, 0.3)) span.set_attribute("db.result.count", 3) return ["AI agents need tracing", "OpenTelemetry standardizes observability", "SigNoz visualizes spans"] def llm_reasoning(prompt, context): with tracer.start_as_current_span("llm_reasoning") as span: span.set_attribute("llm.provider", "openai") span.set_attribute("llm.model", "gpt-4o") span.set_attribute("llm.prompt", prompt) # Simulate token counts prompt_tokens = len(prompt.split()) + len(str(context).split()) completion_tokens = random.randint(150, 300) span.set_attribute("llm.usage.prompt_tokens", prompt_tokens) span.set_attribute("llm.usage.completion_tokens", completion_tokens) span.set_attribute("llm.usage.total_tokens", prompt_tokens + completion_tokens) # Calculate simulated costs cost = (prompt_tokens * 2.5 + completion_tokens * 10) / 1_000_000 span.set_attribute("llm.cost", cost) time.sleep(random.uniform(1.2, 2.5)) # LLM latency return "Reasoning: We must execute the math calculator tool to verify the cost." def tool_execution(tool_name, arguments): with tracer.start_as_current_span("tool_execution") as span: span.set_attribute("tool.name", tool_name) span.set_attribute("tool.arguments", str(arguments)) try: time.sleep(random.uniform(0.3, 0.8)) # Tool latency if tool_name == "calculator": result = str(eval(arguments)) span.set_attribute("tool.status", "success") span.set_attribute("tool.output", result) return result else: raise ValueError(f"Unknown tool: {tool_name}") except Exception as e: # Capture exceptions inside spans automatically span.record_exception(e) span.set_status(trace.StatusCode.ERROR, str(e)) raise def llm_synthesis(reasoning, tool_result): with tracer.start_as_current_span("llm_synthesis") as span: span.set_attribute("llm.provider", "openai") span.set_attribute("llm.model", "gpt-4o") prompt_tokens = len(reasoning.split()) + len(tool_result.split()) completion_tokens = random.randint(80, 150) span.set_attribute("llm.usage.prompt_tokens", prompt_tokens) span.set_attribute("llm.usage.completion_tokens", completion_tokens) span.set_attribute("llm.usage.total_tokens", prompt_tokens + completion_tokens) cost = (prompt_tokens * 2.5 + completion_tokens * 10) / 1_000_000 span.set_attribute("llm.cost", cost) time.sleep(random.uniform(0.8, 1.5)) return "Final Answer: The calculation is complete and verified." # --- Main Agent Loop --- def run_agent(query): # Establish a parent context span for the entire execution with tracer.start_as_current_span("agent_run") as span: span.set_attribute("agent.query", query) print(f"[*] Starting agent with query: {query}") # 1. DB Lookup context = vector_db_lookup(query) print("[+] Vector DB lookup done.") # 2. LLM Reasoning reasoning = llm_reasoning(query, context) print("[+] LLM reasoning done.") # 3. Tool Execution try: tool_res = tool_execution("calculator", "125 * 8") print(f"[+] Calculator tool returned: {tool_res}") except Exception as e: print(f"[-] Tool error: {e}") tool_res = "Error" # 4. Final LLM Synthesis final_answer = llm_synthesis(reasoning, tool_res) print(f"[+] Final synthesis: {final_answer}") span.set_attribute("agent.status", "completed") if __name__ == "__main__": print("[*] Generating AI Agent execution traces...") for i in range(10): run_agent(f"Calculate total token cost for query batch #{i+1}") time.sleep(1) # Flush tracer provider to ensure all spans reach SigNoz provider.shutdown() print("[*] All traces exported successfully.") Step 3: Run the Agent Run the script to populate SigNoz with fresh telemetry: python3 agent.py You will see output indicating that all steps are running synchronously and sending trace batches directly to the local collector. Step 4: Visualizing Agent Traces in SigNoz Open the SigNoz dashboard by navigating to http://localhost:8080 in your web browser. Service Overview: On the Services page, you will see ai-agent-service listed. It calculates latency metrics, throughput (request rates), and error rates automatically based on the incoming traces. Trace List: Navigate to the "Traces" tab, filter by service ai-agent-service, and search. You will see a list of the 10 distinct agent_run execution flows. Trace Waterfall Diagram: Click on any of the traces to see the nested execution. You will see the main agent_run span representing the overall execution time. Nested inside it are vector_db_search, llm_reasoning, tool_execution, and llm_synthesis. Clicking on individual spans exposes the custom metadata attributes. For example, clicking llm_reasoning displays the input prompt, token usage, model (gpt-4o), and estimated API cost. If a tool fails or throws an exception, the tool_execution span turns red and displays the full traceback under the exceptions tab. Conclusion: Observability is Prerequisite for Production AI AI Agents are highly dynamic, stateful, and non-deterministic. Without tracing, they are black boxes that are incredibly hard to optimize or audit. By integrating OpenTelemetry and SigNoz, you gain deep insights into your agent's internals: Pinpoint exactly where latency is coming from. Keep track of tokens and compute costs per agent run. Debug tool and database failures instantly. observability is the key to scaling your AI agents from proof-of-concepts to robust, production-grade applications.

2 hours ago