diff --git a/cmd/root/otel.go b/cmd/root/otel.go
index d5dc5f4aa..5af980db2 100644
--- a/cmd/root/otel.go
+++ b/cmd/root/otel.go
@@ -12,21 +12,14 @@ import (
 	"go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracehttp"
 	"go.opentelemetry.io/otel/sdk/resource"
 	"go.opentelemetry.io/otel/sdk/trace"
-	semconv "go.opentelemetry.io/otel/semconv/v1.37.0"
+	semconv "go.opentelemetry.io/otel/semconv/v1.40.0"
 )
 
 const AppName = "cagent"
 
 // initOTelSDK initializes OpenTelemetry SDK with OTLP exporter
 func initOTelSDK(ctx context.Context) (err error) {
-	res, err := resource.Merge(
-		resource.Default(),
-		resource.NewWithAttributes(
-			semconv.SchemaURL,
-			semconv.ServiceName(AppName),
-			semconv.ServiceVersion("dev"), // TODO: use actual version
-		),
-	)
+	res, err := newOTelResource()
 	if err != nil {
 		return fmt.Errorf("failed to create resource: %w", err)
 	}
@@ -75,6 +68,17 @@ func initOTelSDK(ctx context.Context) (err error) {
 	return nil
 }
 
+func newOTelResource() (*resource.Resource, error) {
+	return resource.Merge(
+		resource.Default(),
+		resource.NewWithAttributes(
+			semconv.SchemaURL,
+			semconv.ServiceName(AppName),
+			semconv.ServiceVersion("dev"), // TODO: use actual version
+		),
+	)
+}
+
 // isLocalhostEndpoint reports whether the given endpoint refers to a
 // loopback address so that we can safely skip TLS.
 func isLocalhostEndpoint(endpoint string) bool {
diff --git a/cmd/root/otel_test.go b/cmd/root/otel_test.go
index cd024f868..042973a9e 100644
--- a/cmd/root/otel_test.go
+++ b/cmd/root/otel_test.go
@@ -4,8 +4,18 @@ import (
 	"testing"
 
 	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+	semconv "go.opentelemetry.io/otel/semconv/v1.40.0"
 )
 
+func TestNewOTelResourceUsesCurrentSchemaURL(t *testing.T) {
+	t.Parallel()
+
+	res, err := newOTelResource()
+	require.NoError(t, err)
+	assert.Equal(t, semconv.SchemaURL, res.SchemaURL())
+}
+
 func TestIsLocalhostEndpoint(t *testing.T) {
 	t.Parallel()