Why AI Systems Need Audit Trails Before Scaling
Enterprises must prioritize robust and auditable AI pipelines as AI applications and agents move into production to ensure compliance and performance.
June 13, 2025 — As enterprises increasingly deploy AI applications and agents into production, the need for robust, traceable, and auditable AI pipelines has never been greater. Without proper controls, organizations risk compliance failures, performance issues, and security vulnerabilities.
The Importance of Auditability
Kevin Kiley, president of orchestration company Airia, emphasizes that frameworks must include observability and audit logs to track decisions, data inputs, and potential issues like hallucinations or bad actors. "You need a record," he told VentureBeat.
Building for the Future
Experts recommend embedding audit trails early in AI development. Key steps include:
- Data inventory: Identify accessible data and establish baselines for model performance.
- Dataset versioning: Assign timestamps or version numbers to ensure reproducibility.
- Tool selection: Choose between open-source platforms like MLFlow or closed systems with compliance integrations (e.g., AWS, Microsoft).
Yrieix Garnier of DataDog notes the challenge: "It’s very hard to validate AI solutions without reference systems."
Transparency Matters
Kiley warns against "black box" systems: "You’re going to have situations where flexibility is critical." Enterprises must balance functionality with visibility into decision-making.
Editor’s note: Learn more at VB Transform 2025.
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About the Author

David Chen
AI Startup Analyst
Senior analyst focusing on AI startup ecosystem with 11 years of venture capital and startup analysis experience. Former member of Sequoia Capital AI investment team, now independent analyst writing AI startup and investment analysis articles for Forbes, Harvard Business Review and other publications.