diff --git a/Gemfile b/Gemfile
index 7533cf3cf..7735dc099 100644
--- a/Gemfile
+++ b/Gemfile
@@ -195,7 +195,7 @@ gem 'reverse_markdown'
 
 gem 'iso-639'
 gem 'ruby-openai'
-gem 'ai-agents', '>= 0.10.0'
+gem 'ai-agents', '>= 0.12.0'
 
 # TODO: Move this gem as a dependency of ai-agents
 gem 'ruby_llm', '>= 1.14.1'
diff --git a/Gemfile.lock b/Gemfile.lock
index 86649021f..34d8ebd38 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -126,7 +126,7 @@ GEM
       jbuilder (~> 2)
       rails (>= 4.2, < 7.2)
       selectize-rails (~> 0.6)
-    ai-agents (0.10.0)
+    ai-agents (0.12.0)
       ruby_llm (~> 1.14)
     annotaterb (4.20.0)
       activerecord (>= 6.0.0)
@@ -1058,7 +1058,7 @@ DEPENDENCIES
   administrate (>= 0.20.1)
   administrate-field-active_storage (>= 1.0.3)
   administrate-field-belongs_to_search (>= 0.9.0)
-  ai-agents (>= 0.10.0)
+  ai-agents (>= 0.12.0)
   annotaterb
   attr_extras
   audited (~> 5.4, >= 5.4.1)
diff --git a/enterprise/app/services/captain/assistant/agent_runner_service.rb b/enterprise/app/services/captain/assistant/agent_runner_service.rb
index 21a9c331e..23cd6f972 100644
--- a/enterprise/app/services/captain/assistant/agent_runner_service.rb
+++ b/enterprise/app/services/captain/assistant/agent_runner_service.rb
@@ -155,7 +155,7 @@ class Captain::Assistant::AgentRunnerService
       span_attributes: {
         ATTR_LANGFUSE_TAGS => ['captain_v2'].to_json
       },
-      attribute_provider: ->(context_wrapper) { dynamic_trace_attributes(context_wrapper) }
+      attribute_provider: Captain::Assistant::InstrumentationAttributeProvider.new(self)
     )
     register_trace_input_callback(runner)
   end
@@ -168,7 +168,6 @@ class Captain::Assistant::AgentRunnerService
     {
       ATTR_LANGFUSE_USER_ID => state[:account_id],
       format(ATTR_LANGFUSE_METADATA, 'assistant_id') => state[:assistant_id],
-      format(ATTR_LANGFUSE_METADATA, 'conversation_id') => conversation[:id],
       format(ATTR_LANGFUSE_METADATA, 'conversation_display_id') => conversation[:display_id],
       format(ATTR_LANGFUSE_METADATA, 'channel_type') => state[:channel_type],
       format(ATTR_LANGFUSE_METADATA, 'source') => state[:source],
diff --git a/enterprise/app/services/captain/assistant/instrumentation_attribute_provider.rb b/enterprise/app/services/captain/assistant/instrumentation_attribute_provider.rb
new file mode 100644
index 000000000..b9b812b0e
--- /dev/null
+++ b/enterprise/app/services/captain/assistant/instrumentation_attribute_provider.rb
@@ -0,0 +1,32 @@
+# frozen_string_literal: true
+
+class Captain::Assistant::InstrumentationAttributeProvider
+  include Integrations::LlmInstrumentationConstants
+
+  def initialize(service)
+    @service = service
+  end
+
+  def call(context_wrapper)
+    @service.send(:dynamic_trace_attributes, context_wrapper)
+  end
+
+  def generation_attributes(_context_wrapper, _chat, message)
+    {
+      format(ATTR_LANGFUSE_OBSERVATION_METADATA, 'generation_stage') => generation_stage(message)
+    }
+  end
+
+  private
+
+  def generation_stage(message)
+    message_has_tool_calls?(message) ? 'tool_call' : 'final_response'
+  end
+
+  def message_has_tool_calls?(message)
+    return false unless message.respond_to?(:tool_calls)
+
+    tool_calls = message.tool_calls
+    tool_calls.respond_to?(:any?) && tool_calls.any?
+  end
+end
diff --git a/spec/enterprise/services/captain/assistant/agent_runner_service_spec.rb b/spec/enterprise/services/captain/assistant/agent_runner_service_spec.rb
index d6e57e710..7cc72c2be 100644
--- a/spec/enterprise/services/captain/assistant/agent_runner_service_spec.rb
+++ b/spec/enterprise/services/captain/assistant/agent_runner_service_spec.rb
@@ -405,6 +405,47 @@ RSpec.describe Captain::Assistant::AgentRunnerService do
     end
   end
 
+  describe 'InstrumentationAttributeProvider' do
+    subject(:provider) { Captain::Assistant::InstrumentationAttributeProvider.new(service) }
+
+    let(:service) { described_class.new(assistant: assistant, conversation: conversation) }
+
+    it 'delegates root trace attributes to the service' do
+      context = {
+        state: {
+          account_id: account.id,
+          assistant_id: assistant.id,
+          conversation: { id: conversation.id, display_id: conversation.display_id }
+        }
+      }
+      context_wrapper = Struct.new(:context).new(context)
+
+      attributes = provider.call(context_wrapper)
+
+      expect(attributes).to include(
+        'langfuse.user.id' => account.id.to_s,
+        'langfuse.trace.metadata.assistant_id' => assistant.id.to_s
+      )
+    end
+
+    it 'marks final response generations for observation-level evaluators' do
+      message = instance_double(RubyLLM::Message, tool_calls: {})
+
+      attributes = provider.generation_attributes(nil, nil, message)
+
+      expect(attributes['langfuse.observation.metadata.generation_stage']).to eq('final_response')
+    end
+
+    it 'marks tool call generations separately from final responses' do
+      tool_call = instance_double(RubyLLM::ToolCall)
+      message = instance_double(RubyLLM::Message, tool_calls: { 'call_1' => tool_call })
+
+      attributes = provider.generation_attributes(nil, nil, message)
+
+      expect(attributes['langfuse.observation.metadata.generation_stage']).to eq('tool_call')
+    end
+  end
+
   describe '#build_state' do
     subject(:service) { described_class.new(assistant: assistant, conversation: conversation) }