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AI Observability Updated Jul 28 2026

Self-improvement as Infrastructure: the Blueprints and the Labor of Agentic RL

Self-improvement as Infrastructure: the Blueprints and the Labor of Agentic RL
AUTHOR | Lior Gavish

Most people imagine self-improving AI like a switch. You ship an agent, a smarter foundation model drops, and suddenly the system starts fixing its own code. Self-improvement arrives fully formed, baked into the weights.

It’s unfortunately far more labor intensive than that. Self-improvement in agentic systems is a loop you build that requires a certain amount of infrastructure. The blueprint is reinforcement learning, but it requires a significant amount of labor to run continuously. This is where the autonomous system comes in; you have to staff the loop with labor that allows humans to remove themselves from the role of operator and become merely an overseer. 

Teams that don’t put the work in now to lay that scaffolding will end up behind in the AI race. 

The Production Environment Contains Your Reward Signals

Reinforcement learning has a clear shape. An agent observes a state, takes an action, gets a reward, and updates its policy. When you run that loop enough times against a good signal, the agent’s performance improves.

The algorithm itself is not the hard part. Rather, it’s the environment: you need something that can produce different states and rewards cheaply, and at volume.

If you run agents in production, you already have that environment. Technologists, including us at Monte Carlo, have written about this extensively already. 

Production telemetry as signal

Agents in production are constantly generating telemetry and operational data. Think about the following: 

  • Trace Data: Every tool call, model invocation, error, and retry.
  • Eval Data: Continuous benchmark scores from grading outputs.
  • Operational Context: Filed tickets, merged PRs, and resolved incidents.

Individually, each data type is a partial picture but connected, they form a real-time reward signal. That connection makes up a reinforcement loop: 

  1. detect a failure
  2. prioritize it against everything else that’s broken in the system 
  3. diagnose the cause
  4. recommend a fix
  5. validate it
  6. deploy
  7. run it again


The last cycle’s fix now forms the baseline for the next cycle that comes after it. The next cycle runs based on these improvements until it runs into its own issues, at which point a new cycle begins again.  And so on, and so forth, as the agent continuously sharpens itself with each cycle in a process of self-optimization.  

The Blueprint: RL as an Infrastructure Pattern

Reinforcement learning serves as a strong blueprint for self-optimization, but it doesn’t quite do the work. That’s because a blueprint as we know it is, of course, inert. It describes the stations, but it doesn’t act upon them. 

This is where the infrastructure comes in. 

Before the rise in agentic AI, operationalizing this type of reinforcement loop used to require a lot of human intervention. This of course has its limitations, as humans can never move at the speed of machines. 

Now, we have the ability to automate this loop almost in its entirety by using a fleet of agents that work together via a sophisticated orchestration system. That is, in essence, what we’ve built at Monte Carlo to automate the self-optimization process of agents so that our customers can ensure agent trust throughout their system. 

Traditional Ops vs. The Self-Improving Loop

PhaseTraditional AI Ops (Human Bottleneck)The Self-Improving Loop (Agentic)
DetectionA bug slips through until a user files a ticketAn agent monitors traces and flags anomalies continuously
PrioritizationBacklog ordered by whoever argues loudest at standupA triage agent ranks issues by failure rate and operational impact
DiagnosisAn engineer loses hours sifting through log tracesA troubleshooting agent isolates root cause and the upstream data path
RecommendationThe same engineer writes the fix and verification tests by handThe agent drafts the fix, verification criteria, and the ticket
ValidationReview competes with everything else in the sprintA human checks the fix against the agent’s verification criteria
DeploymentManual release, whenever someone gets around to itA human ships with one click — the last lever that stays human, for now

The Labor: Operationalizing the Loop with Autonomous Agents

Agents work together to make a reinforcement loop a continuously operating system.  You can see this in action in the Monte Carlo Agent Trust platform via the product views below.

Reinforcement Loop triage stage in the Monte Carlo Agent Trust Platform
The loop surfaced 57 issues across our own agents. The columns doing the real work are Priority, Severity, and Confidence; that’s triage.

Let’s start with detection and triage. The product view above is the reinforcement loop running against Monte Carlo’s own agents, finding 57 issues. This is just a pile of findings unless the system can itself answer the first critical question to get the loop going: what do I spend this cycle on?

That’s where the triage agent comes in, and it’s what determines that a workflow failing 28% of the time is a P0 at the top of the list, and a workflow failing less than 1% of the time sits at P2 with medium confidence. The loop doesn’t just find problems; it ranks them by how much moving them will matter. Without this stage, the loop dead-ends in a list that has no immediate next course of action. With it, the loop knows where to point.

Next comes the diagnosis. This is the station that used to take a huge amount of human engineering time. In the Monte Carlo platform, our Troubleshooting Agent handles the root cause analysis and resolution recommendation steps automatically. 

Troubleshooting Agent view in the Reinforcement Loop in Monte Carlo Agent Trust Platform
The troubleshooting agent’s work product — root cause, quantified payoff, verification criteria, and a drafted ticket. The only human step left is the one that should stay human.

Above is the Troubleshooting Agent’s output on the top issue. It didn’t stop at “13 of 46 runs fail.” It actually pinned the cause: a Bedrock InternalServerException thrown on the Sonnet chat call inside the investigation loop, propagating up and killing the run before it can produce output. It quantified the payoff: handling that transient error recovers up to 6 of the 13 failing runs and directly cuts the unrecovered-conversation rate. It also  wrote the verification criteria, so you know when the fix actually worked. Lastly,  it drafted the ticket.

Look at what’s left for the human on that screen: just a single button to actually create the ticket and ship it. 

That’s the whole game. The stages that should be automated — detect, prioritize, diagnose, recommend — are automated. The stages that should stay human  — validate, deploy — actually do stay human (at least for right now). 

Observability as an Afterthought Fails

You can’t hand a loop this much authority unless you trust its reward signal. This is where most self-improvement endeavours eventually fall apart.

An agent can only correct itself if the signal it gets back contains enough context to correct with. Hand an agent a bare error, like a 429 or an opaque exception, and it has nothing to reason about. So it guesses: it retries with a slightly different input, fails the same way, and loops. 

A guessing loop is a reliability and cost problem, not an intelligence problem, and no foundation model upgrade will fix it.

Notice what our Troubleshooting Agent came back with in the example above. Instead of simply reporting that the run failed, it outlined the exact error signature, the node it fired in, the invocation count, and the propagation path. 

It had all of that information to properly diagnose, validate, and propose a remediation plan that a human could deploy with a single click exactly because observability was baked into the system at all points across the stack. It was not treated as an afterthought to be bolted on, evaluating only the outputs of an extremely complex process where failures can exist at seemingly infinite inflection points. 

When an agent gives a wrong answer, for example, the cause is often way upstream. It’s not in the prompt or weights at all, but a stale table, a changed schema, or a pipeline that broke way before any tool calls were made. If your loop can’t trace a bad output all the way back to the underlying context, it will optimize the agent to work around a broken system. It’ll make the agent worse in a way that looks like better—garbage signal, confidently pursued.

Final Thoughts

This is the state of the Reinforcement Loop right now:  the loop is the blueprint, the agents are the labor, and the observability underneath is what makes the reward signal trustworthy. Put those three together and self-improvement stops being something you wait for a model to grant you. It becomes something you assemble, one station at a time, with a human keeping a hand on the last lever.

But that hand won’t be on the lever forever. Reinforcement learning has always moved in one direction: as the reward signal gets richer and the environment gets safer to act in, the human moves up the stack from doing the work, to reviewing it, and eventually to setting the goal and stepping back.

We will reach a stage where the system detects, fixes, and ships on its own autonomously, with a human simply checking outcomes. 

And, as organizations on the cutting edge of AI continue to build and refine this technology, the stage after that may not need a human at all. You build a loop so that one day it can run without you, and that day is coming closer and closer. 

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