diff --git a/README.md b/README.md
index 55477bc..fe923da 100644
--- a/README.md
+++ b/README.md
@@ -26,6 +26,7 @@
       - [InfluxDB 3](#influxdb-3)
     - [Aggregated Dashboards (Optional)](#aggregated-dashboards-optional)
     - [Other configuration](#other-configuration)
+    - [Logging](#logging)
   - [Development](#development)
     - [Development Environment](#development-environment)
     - [Setup](#setup)
@@ -205,7 +206,33 @@ Also, following environment valuables can be used to configure the service behav
 |---|---|---|
 |TOPIC_MODEL||Specifies the name or path for the topic model. If the model is specified by name, it will be downloaded from the [Huggingface]( https://huggingface.co/). When unset or set to an empty string, the topic classification feature is disabled.|
 |TOPIC_EMBEDDINGS_MODEL||Specifies the name or path for the embeddings model used with the topic model. If the model is specified by name, it will be downloaded from the [Huggingface]( https://huggingface.co/). When unset or set to an empty string, the name will be used from the topic model config.|
-|LOG_LEVEL|INFO|The server logging level. Use DEBUG for dev purposes and INFO in prod|
+|LOG_LEVEL|INFO|Application log level. Use DEBUG for dev purposes and INFO in prod|
+
+### Logging
+
+Logging is provided by the DIAL SDK. The `LOG_LEVEL` variable sets the severity threshold for the application's own logs (`INFO` by default; use `DEBUG` for development).
+
+By default logs are emitted as human-readable text.
+Set `DIAL_SDK_LOG_FORMAT=json` for structured JSON logging.
+The format is controlled by `DIAL_SDK_TEXT_LOG_FORMAT` / `DIAL_SDK_JSON_LOG_FORMAT` (both optional),
+which use Python's `%`-style [logging attributes](https://docs.python.org/3/library/logging.html#logrecord-attributes)
+and default to the values shown below.
+
+Text logging (default):
+
+```txt
+DIAL_SDK_LOG_FORMAT=text
+DIAL_SDK_TEXT_LOG_FORMAT='%(levelprefix)s | %(asctime)s | %(name)s | %(process)d | %(message)s'
+```
+
+Structured JSON logging:
+
+```txt
+DIAL_SDK_LOG_FORMAT=json
+DIAL_SDK_JSON_LOG_FORMAT='{"level": "%(levelname)s", "time": "%(asctime)s", "logger": "%(name)s", "process": "%(process)d", "message": "%(message)s"}'
+```
+
+See the [full logging documentation](https://github.com/epam/ai-dial-sdk/blob/0.38.0/docs/logging.md) for details.
 
 ## Development
 
diff --git a/aidial_analytics_realtime/app.py b/aidial_analytics_realtime/app.py
index 55ab7b8..70b72c7 100644
--- a/aidial_analytics_realtime/app.py
+++ b/aidial_analytics_realtime/app.py
@@ -71,6 +71,8 @@ async def lifespan(app: FastAPI):
 
 init_telemetry(app, TelemetryConfig())
 
+# NOTE: configuring loggers after the DIAL telemetry is initialized,
+# because it may have configured the root logger on its own.
 configure_loggers()
 
 check_deprecations()
diff --git a/aidial_analytics_realtime/utils/logging.py b/aidial_analytics_realtime/utils/logging.py
index c6d64c7..3351c0a 100644
--- a/aidial_analytics_realtime/utils/logging.py
+++ b/aidial_analytics_realtime/utils/logging.py
@@ -1,52 +1,28 @@
 import logging
 import os
-import sys
 from contextvars import ContextVar
 
-from uvicorn.logging import DefaultFormatter
+from aidial_sdk import LogConfig, configure_root_logger
 
 app_logger = logging.getLogger("app")
 LOG_LEVEL = os.getenv("LOG_LEVEL", "INFO")
 
 
 def configure_loggers():
-    # Delegate uvicorn logs to the root logger
-    # to achieve uniform log formatting
-    for name, log in logging.getLogger().manager.loggerDict.items():
-        if isinstance(log, logging.Logger) and name.startswith("uvicorn"):
-            log.handlers = []
-            log.propagate = True
+    # Delegate to the SDK to install a uniformly formatted root logger
+    # handler and to route uvicorn logs through it, preserving this
+    # repo's original text log format.
+    configure_root_logger(
+        LogConfig(
+            text_format="%(levelprefix)s | %(asctime)s | %(process)d | %(name)s | %(message)s"  # noqa: E501
+        )
+    )
 
     # Setting log levels for the analytics application
     app_logger.setLevel(LOG_LEVEL)
 
-    # Configuring the root logger
-    root = logging.getLogger()
-
-    stderr_handler = next(
-        (
-            handler
-            for handler in root.handlers
-            if isinstance(handler, logging.StreamHandler)
-            and handler.stream == sys.stderr
-        ),
-        None,
-    )
-
-    # Do not override the existing stderr handlers
-    # if they are already configured
-    if stderr_handler is None:
-        formatter = DefaultFormatter(
-            fmt="%(levelprefix)s | %(asctime)s | %(process)d | %(name)s | %(message)s",  # noqa: E501
-            use_colors=True,
-        )
-
-        handler = logging.StreamHandler(sys.stderr)
-        handler.setFormatter(formatter)
+    for handler in logging.getLogger().handlers:
         handler.addFilter(_PrefixFilter())
-        root.addHandler(handler)
-    else:
-        stderr_handler.addFilter(_PrefixFilter())
 
 
 _logger_prefix: ContextVar[str] = ContextVar("_logger_prefix", default="")
diff --git a/poetry.lock b/poetry.lock
index 4460c0e..f4d5529 100644
--- a/poetry.lock
+++ b/poetry.lock
@@ -1,15 +1,15 @@
-# This file is automatically @generated by Poetry 2.4.1 and should not be changed by hand.
+# This file is automatically @generated by Poetry 2.3.2 and should not be changed by hand.
 
 [[package]]
 name = "aidial-sdk"
-version = "0.33.1"
+version = "0.38.0"
 description = "Framework to create applications and model adapters for AI DIAL"
 optional = false
 python-versions = "<4.0,>=3.10"
 groups = ["main"]
 files = [
-    {file = "aidial_sdk-0.33.1-py3-none-any.whl", hash = "sha256:469ed97f41dc1f088536031e4281e9c382dcdff18d907f3b34be71e19845f2f8"},
-    {file = "aidial_sdk-0.33.1.tar.gz", hash = "sha256:3b334d9ae8c247f7d08434bcde06f7d6dc9d65cf7da6a47f3e5d0865421ad241"},
+    {file = "aidial_sdk-0.38.0-py3-none-any.whl", hash = "sha256:d67dec8e6133de3e0a75a1646c39d52a0f78860bba57b2e30fb1f158f6f13bd6"},
+    {file = "aidial_sdk-0.38.0.tar.gz", hash = "sha256:ce3022f6e488a2f0de21db2a4ef87bc1e62558e8dd7e96816283b9b20214e1b7"},
 ]
 
 [package.dependencies]
@@ -3807,4 +3807,4 @@ type = ["pytest-mypy"]
 [metadata]
 lock-version = "2.1"
 python-versions = ">=3.12,<3.13"
-content-hash = "5cff830d76b117d2b865e54d319b7832c51f1f19a45e5675a3c053e3a0290b46"
+content-hash = "d2f13b100e4f1295add453ea0870281a9fb85b0612263cbe0da8328fc40c1baf"
diff --git a/pyproject.toml b/pyproject.toml
index b3dc98c..bfb1033 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -30,7 +30,7 @@ bertopic = "^0.15.0"
 python-dotenv = "^1.2.2"
 python-dateutil = "^2.8.2"
 pydantic = "2.7.0"
-aidial-sdk = { version = "0.33.1", extras = ["telemetry"] }
+aidial-sdk = { version = "0.38.0", extras = ["telemetry"] }
 
 # Indirect dependencies
 torch = [