Cisco report says small businesses struggle to monitor AI agents and control costs
Cisco's Splunk State of Observability 2026 report shows small businesses increasingly use AI agents but face monitoring challenges. Nearly 90% of organizations say AI monitoring is a priority, yet more than half cannot measure key performance metrics. 83% worry about unintended AI consequences, and 54% lack clear business‑outcome metrics.
Key points
- Nearly 90% of firms say AI monitoring is a priority, yet 55% cannot control AI expenditures, according to Cisco’s Splunk State of Observability 2026 report
- 83% of respondents worry about unintended AI consequences, and 54% lack clear metrics tied to business outcomes, the report finds
- More than three‑quarters of businesses say collaboration with security teams improves AI troubleshooting, according to Cisco’s findings
The report says 55% cannot rein in AI spending, with billing spikes causing strain. Cisco’s President and CPO Jeetu Patel warned that companies will soon have more agents than people, requiring new security and observability approaches. Splunk SVP Kamal Hathi called observability the bridge to predictable AI costs. Over three‑quarters of firms report stronger collaboration with security teams when monitoring AI, which helps troubleshoot and build trust. The study suggests small businesses should adopt agent observability frameworks, train staff, and align telemetry with strategy to avoid operational failures and improve ROI.
Advanced organizations in the survey attribute AI costs more accurately and see higher returns on observability investments, giving them a competitive edge. The full report is available on Cisco’s Newsroom.
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AI Costs Soar as Organizations Struggle with Agent Monitoring, Report Finds
Small Business Trends · 20 October 2026
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