AI Incident Response: Handle Production AI Issues Effectively


While everyone focuses on building AI features, few engineers prepare for when those features fail in production. Through managing AI incidents at scale, I’ve learned that incident response for AI systems requires different skills and approaches than traditional software, and the difference in response quality directly impacts user trust and business outcomes.

Most incident response playbooks assume deterministic systems with clear error messages. AI systems fail differently: outputs degrade silently, costs spike unexpectedly, model behavior shifts without code changes. This guide covers incident response patterns that work for AI-specific challenges.

AI-Specific Incident Types

Understanding the categories helps prioritize response:

Quality Degradation

Symptoms. User complaints increase, feedback scores drop, but no errors in logs.

Causes. Model provider updates, prompt drift, data quality changes, embedding index problems.

Detection challenge. No error codes. Quality issues hide in aggregated metrics until they become severe.

Response priority. Medium urgency,not immediately catastrophic but compounds over time.

Cost Anomalies

Symptoms. Spend rate dramatically above normal, budget alerts firing.

Causes. Infinite loops, prompt injection exploits, traffic spikes, model tier changes.

Detection challenge. May take hours to appear in billing dashboards.

Response priority. High urgency,can exhaust budgets rapidly and cause cascading outages.

Availability Failures

Symptoms. Requests failing, timeouts, error rates spiking.

Causes. AI provider outages, rate limit exhaustion, infrastructure failures.

Detection challenge. Clear symptoms but root cause may be external.

Response priority. Highest urgency,direct user impact.

Security Incidents

Symptoms. Unexpected outputs, data in responses that shouldn’t be there, user reports of concerning behavior.

Causes. Prompt injection, jailbreaking, data leakage bugs.

Detection challenge. May only be detected through user reports or security audits.

Response priority. Critical,potential regulatory and trust implications.

For monitoring foundations, see my guide on AI monitoring in production.

Incident Detection

You can’t respond to what you don’t detect:

Automated Detection

Error rate monitoring. Alert on error rates exceeding baseline. Set thresholds that balance sensitivity with noise.

Latency monitoring. Track P95 and P99 latency. Alert on significant deviations from normal.

Cost monitoring. Real-time spend tracking with alerts at percentage of budget thresholds.

Quality proxies. User feedback rates, conversation completion, feature usage patterns.

Anomaly detection. Statistical methods to catch unusual patterns that static thresholds miss.

Human Detection

User feedback channels. Make it easy to report issues. “The AI seems off” is valuable signal.

Support ticket monitoring. AI-related support spikes often precede metric movements.

Internal monitoring. Dog-food your own products. Internal users catch issues early.

Social listening. Users often complain publicly before filing support tickets.

Incident Response Process

Structured response reduces chaos:

Phase 1: Assess

Confirm the incident. Distinguish real incidents from false alarms or normal variance.

Classify severity. Is this affecting users now? How many? What’s the business impact?

Identify scope. Which features, user segments, or regions are affected?

Initial communication. Notify relevant teams that an incident is in progress.

Phase 2: Mitigate

Stop the bleeding. Reduce user impact before fully understanding the root cause.

Mitigation options. Feature flags to disable, traffic reduction, fallback activation, rollback.

Document actions. Record what you’re doing, when, and why. Post-incident analysis needs this.

Ongoing communication. Update stakeholders on mitigation status and timeline.

For rollback execution, see my guide on AI rollback strategies.

Phase 3: Diagnose

Gather data. Logs, metrics, recent changes, external status pages.

Form hypotheses. What could cause these symptoms?

Test hypotheses. Can you reproduce? Does evidence support or refute?

Identify root cause. What actually went wrong? Don’t stop at symptoms.

Phase 4: Resolve

Fix the issue. Apply the permanent fix, not just mitigation.

Verify the fix. Confirm metrics return to normal and the issue doesn’t recur.

Remove mitigation. Carefully restore normal operation.

Communication. Notify stakeholders that the incident is resolved.

Phase 5: Learn

Post-incident review. What happened, why, how we responded, what we’ll do differently.

Update runbooks. Encode learnings for future incidents.

Implement improvements. Action items from the review should actually happen.

Share learnings. Other teams can benefit from your experience.

AI-Specific Response Patterns

Incident response tailored to AI challenges:

Model Provider Outage Response

Detection. External API errors, timeout rates spiking, status page checks.

Mitigation. Switch to backup provider if available, activate fallback responses, inform users.

Communication. “Our AI features are temporarily limited due to a provider issue.”

Resolution. Monitor provider status, gradually restore traffic when stable.

Quality Degradation Response

Detection. User feedback decline, quality metrics degradation.

Investigation. Compare recent outputs to baseline, check for model updates, review recent changes.

Mitigation. Revert to known-good prompts, consider model version pinning if available.

Resolution. Identify what changed, implement quality gates to prevent recurrence.

Cost Spike Response

Detection. Budget alerts, spend rate anomalies.

Immediate action. Rate limit or disable expensive features to stop spend growth.

Investigation. Identify which requests are expensive and why.

Resolution. Fix the root cause, implement cost safeguards.

For cost management, see my guide on AI cost management architecture.

Prompt Injection Response

Detection. Unusual outputs, user reports, security monitoring.

Immediate action. Disable affected features, preserve logs for analysis.

Investigation. Analyze attack vectors, assess data exposure.

Resolution. Implement defenses, potentially notify affected users.

Building Incident Response Capability

Preparation makes response effective:

Runbooks

Document common scenarios. Step-by-step guides for known incident types.

Include decision trees. Help on-call make correct decisions under pressure.

Keep runbooks current. Review and update after every incident.

Make runbooks accessible. No login required. Accessible when everything else is broken.

On-Call Preparation

Train on-call engineers. They need to understand AI systems, not just general infrastructure.

Escalation paths. Clear escalation for AI-specific expertise.

Access verification. Verify on-call can access monitoring, logs, and feature flags.

Regular drills. Practice incident response before real incidents.

Communication Templates

Status page updates. Pre-written templates reduce communication delay during incidents.

Stakeholder updates. Clear, factual updates without speculation.

User communication. Appropriate transparency without panic-inducing detail.

Recovery Verification

Smoke tests. After resolution, verify key functionality works.

Metric monitoring. Watch for recurrence and confirm metrics stabilize.

User experience sampling. Manually verify the user experience is restored.

Team Coordination During Incidents

People aspects of incident response:

Roles

Incident commander. Coordinates response, makes decisions, manages communication.

Technical lead. Leads diagnosis and resolution efforts.

Communications lead. Handles stakeholder and user communication.

Scribe. Documents actions and timeline for post-incident review.

Communication

Single source of truth. One channel or thread for incident coordination.

Regular updates. Even “still investigating” updates reduce chaos.

Avoid speculation. State what you know, acknowledge what you don’t.

Post-incident summary. Clear communication when incident resolves.

Psychological Safety

Blameless culture. Focus on systems, not individuals.

Support fatigue. Long incidents exhaust people. Rotate as needed.

Post-incident care. Incidents are stressful. Check on your team afterward.

Preventing Future Incidents

Turn incidents into improvements:

Post-Incident Review

Timeline reconstruction. What happened when?

Contributing factors. What conditions enabled this incident?

Response evaluation. What went well? What could improve?

Action items. Specific improvements with owners and deadlines.

Systemic Improvements

Monitoring gaps. Would better monitoring have detected this earlier?

Mitigation speed. Could we have mitigated faster with better tooling?

Prevention opportunities. Could this incident have been prevented?

Documentation needs. Would better documentation have helped response?

Testing for Resilience

Chaos engineering. Deliberately inject failures to test response.

Game days. Scheduled incident response practice.

Failure mode documentation. Understand how your system fails and plan for it.

The Path Forward

Incident response for AI systems is a skill that improves with practice and preparation. Every incident is an opportunity to improve your systems and your team’s capability.

Build detection that catches AI-specific issues. Create runbooks that encode learnings. Practice response before you need it. Maintain blameless culture that encourages transparency. Over time, your incidents become shorter, your response becomes faster, and your systems become more resilient.

Ready to handle AI incidents confidently? To see these patterns in practice, watch my YouTube channel for hands-on tutorials. And if you want to learn from other engineers who’ve navigated AI production incidents, join the AI Engineering community where we share war stories and response strategies.

Zen van Riel

Zen van Riel

Senior AI Engineer at GitHub | Ex-Microsoft

I grew from intern to Senior Engineer at GitHub, previously working at Microsoft. Now I teach 22,000+ engineers on YouTube, reaching hundreds of thousands of developers with practical AI engineering tutorials. My blog posts are generated from my own video content, focusing on real-world implementation over theory.

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