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The metrics, logs, and traces you continuously emit from production to know how your system is actually behaving.
It's the always-on data feed — latency, token spend, error rates, tool-call success, traces — that turns 'users say it feels slow/dumb today' into a number you can chart and alarm on. Without it you're flying blind in prod, where evals can't reach because you don't know the right answers to live inputs. Example: a dashboard showing p95 latency, daily token cost, and refusal rate, with an alert when hallucination rate crosses a threshold.
Plainly
Think of Telemetry as roads and power for the app city. The metrics, logs, and traces you continuously emit from production to know how your system is actually behaving.
In practice
Use it when local behavior needs to become a reachable, reliable deployed service. In practice, define the owner, input, output, and failure mode before you rely on it.