XAI in Agentic AI Systems

An agent plans, calls tools, reads results, updates state, and acts. The most useful explanation is often a trace of those events rather than a paragraph describing “reasoning.”

For a failed purchase order, we want the query sent to inventory, the records returned, the calculation performed, and the authorization rule applied.

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Decision trace

An agent trace records observations, tool calls, tool outputs, state transitions, guardrail decisions, and final actions. A good trace is timestamped, scoped, and linked to the exact run.

Debug an Agent Run

Step through a purchase-order trace. Hide the failed calculator call and see how the same final hold becomes harder to reconstruct.

Final action

approval hold

First call failed: malformed expression.

A useful agent trace includes observations, failures, retries, and policy decisions. Successful actions alone create an incomplete story.

Raw traces can leak private data and overwhelm users. Build layered views: a concise user explanation, an operator trace, and a detailed audit record.

Log enough to reconstruct the run, including retries and tool errors. A trace that records only successful actions creates a flattering fiction.

Checkpoint

Why should an agent explanation include failed tool calls?