Datadog announced the launch of Bits AI SRE, an AI‑powered agent that automatically investigates alerts and surfaces root‑cause insights within minutes, at its DASH event.
The agent leverages Datadog’s full telemetry stack to analyze runbooks, telemetry, and organizational context, delivering actionable conclusions before on‑call engineers log in. In testing, it processed more than 2,000 customer environments and performed tens of thousands of investigations, with customers reporting mean‑time‑to‑resolution reductions of up to 70%.
Bits AI SRE is part of the broader Bits AI suite, positioning Datadog to deepen its platform moat by adding autonomous incident response to its observability and security portfolio. The move targets the AI‑native market, where Datadog’s customers increasingly rely on real‑time observability to support AI workloads.
By automating incident investigation, Datadog differentiates itself from competitors such as Splunk and New Relic, which lack comparable AI‑driven action capabilities. The agent’s ability to surface root causes quickly reduces engineering toil and improves system reliability, reinforcing Datadog’s value proposition to enterprise customers.
Chief Product Officer Yanbing Li said the launch “represents a pivotal expansion of Datadog’s AI strategy as our first generally available AI agent, and signals a new phase of intelligent, automated reliability.” The company’s broader AI investments, including partnerships with OpenAI, are expected to drive further revenue growth.
Analysts have noted Datadog’s AI strategy as a key growth driver, citing the company’s data advantage and the expanding AI‑native customer base. The Bits AI SRE launch is expected to strengthen customer stickiness and open new revenue opportunities in the AI‑native market.
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