Case Study

Fintech
Enterprise

Enterprise AI Observability and Model Governance on Azure

How a leading FinTech enterprise went from fragmented, siloed AI operations to a governed, enterprise-grade observability platform built on Azure and Datadog.

AI Traffic Visibility
0 %

Per App

Token Attribution

Model Migration
0 x Faster

Full Stack

Distributed Tracing

Client Profile

INDUSTRY

FinTech Technology (FinTech)

SCALE

Enterprise, multiple distributed engineering teams

PLATFORM

Azure AI Foundry, Azure OpenAI

CHALLENGE

Uncontrolled AI costs, inconsistent model governance, fragmented tracing

ENGAGEMENT

Cloud and AI Platform Architecture Consulting

Executive summary

A leading FinTech enterprise faced a familiar but costly problem: multiple engineering teams consuming shared Azure AI services with no unified view of usage, costs, or model performance. As their AI portfolio grew, this gap created real risk, overruns had no early warning, model migrations were guesswork, and production incidents were slow to diagnose.

The organization engaged a senior cloud and AI consulting practice to design and deploy a scalable observability and governance platform. The result is a centralized architecture that combines Azure-native controls with Datadog-based observability, delivering token-level cost attribution, structured model benchmarking, and end-to-end distributed tracing across every engineering team.

Business Challenges

Before this engagement, three interconnected problems were limiting the client’s ability to scale AI responsibly:

1

No Centralized LLM Monitoring

Multiple engineering teams consumed shared Azure-hosted AI services independently, with no unified view of request volumes, token usage, latency, or cost. Leadership had no reliable way to assess platform adoption or spending efficiency, making budget planning reactive and imprecise.

2

Fragmented Model Evaluation

Model upgrades and version migrations were handled manually, driven by subjective judgment and inconsistent validation criteria. Without a shared benchmark, teams couldn't compare models objectively, making deprecation responses slow and high-risk. Every migration carried unnecessary uncertainty.

3

Incomplete Application Tracing

Existing Datadog coverage did not extend to AI-specific request tracing. Teams were unable to follow a user request through APIs, LLM interactions, and downstream database calls. Root cause analysis during incidents was time-consuming, often requiring engineers to stitch together logs from multiple systems manually.

Solution Architecture

A centralized API gateway for all LLM traffic, a Datadog-based observability and experimentation layer, and full-stack distributed tracing. Each pillar addresses one of the core challenges, and together they form an integrated governance platform that scales as the AI portfolio grows.

Centralized LLM Monitoring

Azure API Management (APIM) was deployed as the control plane for all LLM traffic. Every call to Azure OpenAI Service now routes through APIM, where subscription keys identify the consuming application and custom policies capture request metadata, token counts, and cost signals. This data flows into Azure Monitor Workbooks via KQL queries, giving operations teams a real-time view of usage across the enterprise.

In parallel, Datadog LLM Observability was integrated using the Datadog SDK. This layer captures prompt execution details, model responses, latency distributions, and token consumption at the individual request level. Together, APIM and Datadog provide both an executive cost view and a granular engineering view from a single unified data pipeline.

Automated Model Evaluation

A structured evaluation framework replaced ad hoc model comparison. Before any model change, candidate models are tested under identical conditions and scored using an LLM-as-a-Judge methodology. Every model is assessed across quality, relevance, and correctness dimensions, with native Datadog evaluators adding automated signals for sentiment, hallucination detection, toxicity, and topic relevance.

Results are published through Datadog Experiments, giving stakeholders a clear, side-by-side view of model performance before any production change is approved. This turns model governance from a subjective conversation into an evidence-based decision process.

End-to-End Distributed Tracing

Applications were instrumented using the Datadog SDK to produce a continuous trace for every user request, from system entry through application logic, AI interactions, outbound API calls, and database operations. Every hop in the request lifecycle is visible in one trace view.

This capability allows teams to isolate slow transactions, pinpoint high-latency dependencies, and reduce mean time to investigate production incidents dramatically. What once required manual log correlation across multiple systems is now a single query in Datadog APM.

Technology stack

Cloud & AI Platform

Microsoft Azure
Azure AI Foundry
Azure OpenAI Service

API Gateway

Azure API Management (APIM)

Monitoring and Query

Azure Monitor
KQL
Azure Monitor Workbooks

AI Observability

Datadog LLM Observability

Model Evaluation

Datadog Experiments
LLM-as-a-Judge

Monitoring and Query

Datadog APM
Datadog SDKs

Business Outcomes

The platform delivered measurable improvements across monitoring, cost control, model governance, and incident response. Each outcome reflects a direct before-and-after change in how the organization operates.
Centralized AI Observability
BEFORE

Each team tracked AI usage in isolation. Leadership had no shared view across the organization.

AFTER
A single monitoring surface covers all AI-powered applications. Operations and leadership have real-time visibility into request volumes, latency, and service health.
Application-Level Token Tracking
BEFORE
Token consumption was opaque at the enterprise level, making cost allocation guesswork with no reliable per-team data.
AFTER
Every LLM call is tagged with a subscription identity via Azure APIM. Token usage is attributed precisely to each application, making cost conversations factual and auditable.
Cost Visibility and Accountability
BEFORE
Finance teams had no reliable data to report on AI spend or enforce consumption budgets across engineering teams.
AFTER
Per-application token data flows into Azure Monitor Workbooks, giving finance and platform teams accurate cost reports and early warning on usage spikes.
Standardized Model Evaluation
BEFORE
Model selection relied on informal testing and personal judgment, with no shared evaluation criteria or documented rationale.
AFTER
Candidate models are scored against a shared benchmark using LLM-as-a-Judge methodology. Every model decision is now consistent, auditable, and defensible.
Faster and Lower-Risk Model Migrations
BEFORE
Validating a model replacement took weeks and carried significant risk due to the absence of a structured benchmark or comparison process.
AFTER
Teams now validate replacements in days. Datadog Experiments gives stakeholders a side-by-side comparison before any production change goes live.
End-to-End Distributed Tracing
BEFORE
Root cause analysis was slow because no single trace connected user requests to AI calls and database queries. Engineers had to manually stitch logs.
AFTER
Every request can be followed from entry point through API calls, LLM interactions, and database operations in one trace view, cutting investigation time significantly.
Reduced Operational Complexity
BEFORE
AI monitoring required a separate toolchain that engineering teams had to learn and maintain alongside existing tools.
AFTER
All telemetry was consolidated into existing Azure and Datadog investments, adding full AI visibility without any new platforms or operational overhead.
Scalable Governance for Future AI Growth
BEFORE
Each new AI application required a bespoke monitoring setup with no shared standards, slowing adoption and introducing inconsistency.
AFTER
New workloads onboard into the governance framework with minimal setup, supporting confident, controlled AI adoption as the portfolio grows.

Key Capabilities Delivered

Unified LLM monitoring across all Azure-hosted AI services
Per-application token usage tracking with APIM subscription keys
KQL-powered Azure Monitor Workbooks for real-time cost reporting
Datadog LLM Observability for prompt-level and response-level telemetry
Automated model scoring with LLM-as-a-Judge across quality, relevance, and correctness
Native Datadog evaluators for hallucination detection, sentiment, and toxicity
Side-by-side model comparisons via Datadog Experiments before production changes
End-to-end distributed tracing from API gateway through LLM to database
Consolidated telemetry into existing Azure and Datadog toolchains
Reusable governance framework for fast, standardized onboarding of new AI workloads

Conclusion

A Platform Built to Last

This engagement moved a leading FinTech enterprise from fragmented, team-level AI operations to a governed, scalable enterprise platform. By combining Azure API Management, Azure Monitor, Datadog LLM Observability, Datadog Experiments, and distributed tracing, the organization now has the infrastructure to monitor, evaluate, and optimize a growing portfolio of LLM-powered applications with confidence.

The solution addressed immediate operational pain around token tracking, model evaluation, and request tracing, while also establishing a long-term operating model for responsible AI adoption. New AI workloads onboard into the governance framework with minimal rework, giving both engineering teams and business leadership the visibility and control they need as AI adoption grows.

The architecture is not just a monitoring layer. It is a foundation for enterprise AI operations that will scale with the organization's ambitions.

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