Lumigo's Auto-Tracing allows developers to implement distributed tracing on their AWS Lambda functions with minimal code changes, enabling easier monitoring and optimization of serverless infrastructure. Traditional instrumentation methods can be tedious and time-consuming, requiring manual wrapping around each function and potential difficulties when switching between different monitoring services. Lumigo's auto-tracing feature simplifies the process by automatically adding tracers to all functions without modifying any code, providing a more efficient and transparent way to manage distributed tracing.