Observability is a critical aspect of modern application and infrastructure management, encompassing metrics, logs, events, and traces to provide actionable insights into system performance and behavior. It extends this concept to the complex world of AI-powered applications, enabling organizations to optimize for accuracy, efficiency, and reliability, while mitigating risks such as bias and drift, and addressing security and compliance concerns. The challenges of AI adoption include complexity, operational efficiency, scalability and performance, cost management, data quality and fairness, security and compliance, culture and skill set. Observability can simplify AI application deployment, maintain operational efficiency, ensure scalability and performance, manage costs, ensure data quality and fairness, enhance security and compliance, and foster a cultural transformation. By integrating observability into AI adoption strategies, organizations can navigate the complexities of AI implementation more effectively, ensuring sustained success and a competitive edge in the AI-driven landscape.