Datadog has launched Bits Agent Builder, a generally available tool for creating custom AI agents hosted within Datadog. These agents can interpret observability data, reason through complex decisions, and take automated actions without hardcoding logic branches. Agents have access to 2,000+ prebuilt actions connecting to Kubernetes, cloud services, CI/CD platforms, and security tools. Key use cases include automating application error investigations (pulling logs, APM, and RUM data to generate Slack reports), detecting and responding to critical vulnerabilities (creating cases, generating GitHub PRs, quarantining EC2 instances), and auto-generating service documentation via IDP Scorecards. Multiple agents can be chained together for end-to-end operational workflows.