AI adoption outpaces operational readiness as enterprise complexity rises, Dyntrace report finds

By Express Computer On Nov 12, 2026

Indian organisations are struggling to keep pace with the operational complexity created by expanding AI deployments, with gaps in visibility, data management and infrastructure adding to the challenge, according to Dynatrace’s State of Observability 2026 report.

The report found that 53% of Indian organisations identify the expansion of artificial intelligence, large language models (LLMs) and agentic workloads as a leading source of technology complexity, up nine percentage points from the previous year. Unpredictable AI behaviour was cited by 50% of respondents, while 51% pointed to the growing complexity of technology environments.

Visibility into AI-driven operations remains another concern. Globally, although 43% of organisations consider understanding how AI agents reach decisions important, only 27% currently have visibility into those decisions. While 87% are using AI agents moderately or extensively in observability and IT operations, only 12% have achieved fully autonomous operations. Humans continue to verify an average of 66% of AI-powered decisions.

The growing volume of operational data is also putting pressure on enterprise infrastructure. In India, 45% of organisations identified telemetry volume as a source of complexity, an increase of 10 percentage points. Instrumentation complexity was cited by 53% as a key data-ingestion challenge, up 21 percentage points, while 48% reported integration challenges and 44% pointed to costs.

Globally, 81% of organisations reported higher computing and infrastructure spending due to AI workloads, while 78% reported increased energy costs. Another 77% said AI workloads had increased their need for visibility into cost allocation.

Despite these challenges, Indian organisations reported gains from observability, particularly in reliability and uptime, cited by 68% of respondents, up 16 percentage points. Better-informed decision-making was identified by 57%, while 41% cited improvements in capacity planning.

The report also highlighted gaps in vulnerability management. While 29% of Indian organisations said they fix vulnerabilities within 24 hours, only 21% have a formal remediation target within the same timeframe.

The findings are based on a global survey of 1,202 technology leaders and highlight the growing need for enterprises to strengthen operational visibility, data management and governance as AI deployments move into production.