Vercel AI SDK observability installation
Let AI instrument your LLM calls for you
Skip the manual setup — run this in your project and the wizard installs the SDK and wires up AI Observability for you.

Contents
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Install dependencies
RequiredInstall the PostHog AI package, the Vercel AI SDK, the OpenTelemetry SDK, and Zod for defining tool schemas.
AI SDK version: this integration requires AI SDK v5 or v6. AI SDK v7 removed its OpenTelemetry instrumentation, so it no longer emits the
ai.*spans thatPostHogSpanProcessorreads, andtelemetry.metadatais no longer accepted. Installingaiwithout a version constraint gets you v7, which will not produce any events. Pinai@^6with the matching@ai-sdk/openai@^3until PostHog ships v7 support. - 2
Set up the OpenTelemetry exporter
RequiredInitialize the OpenTelemetry SDK with PostHog's
PostHogSpanProcessor. This sendsgen_ai.*spans directly to PostHog's OTLP ingestion endpoint. PostHog converts these into$ai_generationevents automatically. - 3
Call Vercel AI with telemetry enabled
RequiredPass
experimental_telemetryto your Vercel AI SDK calls. Theposthog_distinct_idmetadata field links events to a specific user in PostHog. Definetoolsthe same way you always would, with anexecutefunction, asget_weatherdoes below.Note: If you want to capture LLM events anonymously, omit the
posthog_distinct_idmetadata field. See our docs on anonymous vs identified events to learn more.Custom properties: Prefix any telemetry metadata field with
posthog_to attach it to the$ai_generationevent as a custom property. PostHog strips the prefix, soposthog_environmentbecomes anenvironmentproperty you can filter and break down by. PostHog does not capture other metadata fields.You can expect captured
$ai_generationevents to have the following properties:Property Description $ai_modelThe specific model, like gpt-5-miniorclaude-4-sonnet$ai_latencyThe latency of the LLM call in seconds $ai_time_to_first_tokenTime to first token in seconds (streaming only) $ai_toolsTools and functions available to the LLM $ai_inputList of messages sent to the LLM $ai_input_tokensThe number of tokens in the input (often found in response.usage) $ai_output_choicesList of response choices from the LLM $ai_output_tokensThe number of tokens in the output (often found in response.usage)$ai_total_cost_usdThe total cost in USD (input + output) [...] See full list of properties - 4
Next steps
RecommendedNow that you're capturing AI conversations, continue with the resources below to learn what else AI Observability enables within the PostHog platform.
Resource Description Basics Learn the basics of how LLM calls become events in PostHog. Generations Read about the $ai_generationevent and its properties.Traces Explore the trace hierarchy and how to use it to debug LLM calls. Spans Review spans and their role in representing individual operations. Anaylze LLM performance Learn how to create dashboards to analyze LLM performance.

