The traditional methods of measuring success no longer tell the full story. Here’s what should replace them — and why.

In brief:

• AI is transforming software as a service (SaaS), and the old ways of keeping score no longer apply.
• Smart companies are evolving new metrics that provide deeper insight into how AI-native software is performing in a new marketplace.
• These changes impact everything from pricing to valuations.

The transformation of the software-as-a-service (SaaS) industry toward AI-native operating companies is rapidly changing the unit of value across the industry.

The traditional metric of seats — which measured access — is rapidly giving way to credits designed to measure work performed. This evolution is upending the industry in multiple ways, impacting everything from pricing to enterprise valuations.

While many companies still cling to seat-based metrics to measure growth, efficiency and durability, the future is likely to be one in which companies utilize a credit-centric metrics framework, with seats and outcomes as the bookends of a spectrum.

Why do software companies need new metrics?

Why the rethink, and why now? There are five major forces that are driving this shift:

1. The unit of value is changing. Seats measured who could access software, and credits measure what the software actually does. But in an AI-native world, agents don’t have seats; they have workloads. Over the past 18 months, every major SaaS platform has moved to some forms of credit or consumption unit.
2. The cost of goods sold (COGS) is exploding. AI inference adds real per-unit costs that scale with usage. In an AI-native world, software companies can’t scale to infinite users at near‑zero marginal cost as before.
3. Buying is moving up the org chart. AI-native applications shift purchasing to higher-level operators — such as line-of-business leaders or chief operating officers — which expands the market from software budgets to labor budgets. And because AI agents replace services as well as software, the total market opportunity is 3x to 10x larger than traditional SaaS.
4. Time to value (TTV) is collapsing. With AI-native tools, customers start seeing meaningful results in weeks rather than quarters. Onboarding and setup are fast, workflows are pre-built, and there’s no need for extensive customer success or professional services — dramatically reducing implementation time and costs.
5. Retention is bifurcating. AI forces clarity in a way that traditional SaaS couldn’t. Products that can provide value become even “stickier” and retain customers. Those that don’t churn faster. In an AI-native marketplace, the middle disappears.

How this shift is impacting pricing

Given how AI-native software is transforming the market, the shift to more variable pricing options is inevitable.

Seats won’t go away completely. Subscription pricing based on the number of users is stable and predictable and will continue to work for some customers. Tokens — the use of pass-through pricing for underlying compute — will fit those customers where the AI feature is commoditized or the buyer wants transparency into costs.

Credits will likely become the dominant architecture because they provide a simple metric for both customers and providers. The vendor sets the conversation ratio between credits and underlying compute, shielding the customer from inference cost details. Credits are easy to understand and can be packaged into annual contracts for multiple features and products.

Finally, the industry will likely see some move toward outcome-based pricing for results such as resolved tickets, recovered revenue or qualified leads. This strategy will mostly be limited to verticals where it is easy to prove AI impacted the result.

Where a software vendor sits on this spectrum is a signal of differentiation and pricing power. Credits are where most defensible AI-native businesses are landing because they balance customer predictability with vendor margin control.

How AI upends classic SaaS metrics

When SaaS was in its infancy, companies settled on key metrics designed to answer a small set of core questions. Are we growing? Are customers using the product? Are we retaining and expanding accounts?

But as AI upends software itself, it is also requiring companies to adopt new metrics to track success. These new metrics fall into three primary buckets, rebuilt around the pricing spectrum described earlier and the trend toward credits as the primary frame:

Revenue composition

• Committed credit annual recurring revenue (ARR) vs. burndown ARR: Measuring the credits sold on annual commitment vs. those consumed and replenished. This is the single most important split for valuation. Committed credits behave like subscription and burndown behaves like usage.
• Credit utilization rate: The percentage of purchased credits consumed per period. This is a leading indicator of renewal sizing.
• Credit burn velocity: How fast is a customer consuming their credits, and is that consumption increasing or decreasing quarter over quarter? This metric predicts expansion or contraction before it shows up in ARR.
• Effective price per credit: The real revenue per credit after discounts, overage and rollover, which can detect revenue leakage and help companies set smarter guide rails.

Margin reality

• Credit margin: The gross profit the company earns per credit after subtracting inference costs. This is the core economic unit for AI-native, usage-based businesses — the replacement for gross margin per seat used in SaaS.
• Inference-adjusted gross margin: By carving out AI inference costs separately in the P&L statement, you can see true AI margins, avoid hiding deterioration inside blended SaaS margins, and clearly distinguish AI economics from legacy SaaS economics.
• Compute leverage ratio: This metric measures how efficiently the business converts compute spend into revenue. It shows whether your AI margins are improving as you scale.
• AI-adjusted “Rule of 40”: This updated metric recalibrates the traditional growth and profitability benchmark to account for AI’s lower gross margins and variable inference costs, giving a more accurate picture of business health for AI-native companies.

Behavioral and value signals

• Time-to-first outcome: Replaces traditional onboarding metrics. Tracks how fast a customer reaches their first measurable result.
• Adoption: AI-native adoption is measured by workflow penetration and active agent density, not seat count. As AI replaces human-driven usage, the unit of adoption shifts from people to automated workflows and agents.
• Net credit retention (NCR): Credit-volume retention across the customer base, tracked separately from net recurring revenue to avoid price-change impact.

Along with these new metrics, the industry’s transformation is prompting companies to retire or recalibrate old SaaS measures, including per-seat ARR as a primary key performance indicator (KPI), traditional magic number calibrated to subscription dynamics, unadjusted Rule of 40, customer success metrics tied to human touchpoints, and blended gross margin without AI COGS carve-outs.

What does this mean for enterprise value calculations?

As the internal metrics of success change, so do the ways the investment community measures growth and long-term viability.

Increasingly, a company’s valuation multiple depends on whether its revenue behaves like committed subscription ARR or volatile usage ARR, and the commit‑to‑burndown ratio is the metric investors use to decide where the company fits.

For example, a business with 80% committed credit ARR could trade closer to subscription comps and one with 80% burndown could trade closer to usage comps even though both have the same types of customers. Being able to proactively explain the commit‑to‑burndown mix can help companies avoid undervaluation.

In addition, utilization is expected to replace net promoter scores and seat usage as the primary predictor of churn or expansion. Low utilization guarantees downsizing at renewal, so companies must track utilization cohorts the same way SaaS tracks logo retention cohorts today.

We’re also seeing an inversion of the operating model, with R&D and COGS moving up the P&L and sales and marketing (S&M) and customer success (CS) moving down or sideways. The net operating leverage profile is structurally different from classical SaaS, and the cost-to-scale curve looks different too.

Finally, credit margin engineering is a hidden value-creation lever. The gap between price per credit and cost per credit is set by the software vendor and can be optimized. Most operators have barely started managing this rigorously, and the ones who do will pull away on margin.

What this means for leaders, boards and investors

The shift from classic SaaS metrics to new AI‑native measures isn’t cosmetic. It represents the seismic change the industry is experiencing as AI matures and transforms products and organizations.

While these metrics — and perhaps others yet to be determined — may evolve over time, there is no doubt they are already changing how AI companies allocate capital, price products, incent sales teams, evaluate performance and communicate with investors.

It’s important to remember that SaaS metrics were practical tools for a specific era of software. As that era draws to a close, winning companies will choose new metrics that shape behavior and drive smart decision-making.

The views reflected in this article are the views of the author and do not necessarily reflect the views of Ernst & Young LLP or other members of the global EY organization.

This article is published as part of the Foundry Expert Contributor Network.
Want to join?

The traditional methods of measuring success no longer tell the full story. Here’s what should replace them — and why.

In brief:

• AI is transforming software as a service (SaaS), and the old ways of keeping score no longer apply.
• Smart companies are evolving new metrics that provide deeper insight into how AI-native software is performing in a new marketplace.
• These changes impact everything from pricing to valuations.

The transformation of the software-as-a-service (SaaS) industry toward AI-native operating companies is rapidly changing the unit of value across the industry.

The traditional metric of seats — which measured access — is rapidly giving way to credits designed to measure work performed. This evolution is upending the industry in multiple ways, impacting everything from pricing to enterprise valuations.

While many companies still cling to seat-based metrics to measure growth, efficiency and durability, the future is likely to be one in which companies utilize a credit-centric metrics framework, with seats and outcomes as the bookends of a spectrum.

Why do software companies need new metrics?

Why the rethink, and why now? There are five major forces that are driving this shift:

1. The unit of value is changing. Seats measured who could access software, and credits measure what the software actually does. But in an AI-native world, agents don’t have seats; they have workloads. Over the past 18 months, every major SaaS platform has moved to some forms of credit or consumption unit.
2. The cost of goods sold (COGS) is exploding. AI inference adds real per-unit costs that scale with usage. In an AI-native world, software companies can’t scale to infinite users at near‑zero marginal cost as before.
3. Buying is moving up the org chart. AI-native applications shift purchasing to higher-level operators — such as line-of-business leaders or chief operating officers — which expands the market from software budgets to labor budgets. And because AI agents replace services as well as software, the total market opportunity is 3x to 10x larger than traditional SaaS.
4. Time to value (TTV) is collapsing. With AI-native tools, customers start seeing meaningful results in weeks rather than quarters. Onboarding and setup are fast, workflows are pre-built, and there’s no need for extensive customer success or professional services — dramatically reducing implementation time and costs.
5. Retention is bifurcating. AI forces clarity in a way that traditional SaaS couldn’t. Products that can provide value become even “stickier” and retain customers. Those that don’t churn faster. In an AI-native marketplace, the middle disappears.

How this shift is impacting pricing

Given how AI-native software is transforming the market, the shift to more variable pricing options is inevitable.

Seats won’t go away completely. Subscription pricing based on the number of users is stable and predictable and will continue to work for some customers. Tokens — the use of pass-through pricing for underlying compute — will fit those customers where the AI feature is commoditized or the buyer wants transparency into costs.

Credits will likely become the dominant architecture because they provide a simple metric for both customers and providers. The vendor sets the conversation ratio between credits and underlying compute, shielding the customer from inference cost details. Credits are easy to understand and can be packaged into annual contracts for multiple features and products.

Finally, the industry will likely see some move toward outcome-based pricing for results such as resolved tickets, recovered revenue or qualified leads. This strategy will mostly be limited to verticals where it is easy to prove AI impacted the result.

Where a software vendor sits on this spectrum is a signal of differentiation and pricing power. Credits are where most defensible AI-native businesses are landing because they balance customer predictability with vendor margin control.

How AI upends classic SaaS metrics

When SaaS was in its infancy, companies settled on key metrics designed to answer a small set of core questions. Are we growing? Are customers using the product? Are we retaining and expanding accounts?

But as AI upends software itself, it is also requiring companies to adopt new metrics to track success. These new metrics fall into three primary buckets, rebuilt around the pricing spectrum described earlier and the trend toward credits as the primary frame:

Revenue composition

• Committed credit annual recurring revenue (ARR) vs. burndown ARR: Measuring the credits sold on annual commitment vs. those consumed and replenished. This is the single most important split for valuation. Committed credits behave like subscription and burndown behaves like usage.
• Credit utilization rate: The percentage of purchased credits consumed per period. This is a leading indicator of renewal sizing.
• Credit burn velocity: How fast is a customer consuming their credits, and is that consumption increasing or decreasing quarter over quarter? This metric predicts expansion or contraction before it shows up in ARR.
• Effective price per credit: The real revenue per credit after discounts, overage and rollover, which can detect revenue leakage and help companies set smarter guide rails.

Margin reality

• Credit margin: The gross profit the company earns per credit after subtracting inference costs. This is the core economic unit for AI-native, usage-based businesses — the replacement for gross margin per seat used in SaaS.
• Inference-adjusted gross margin: By carving out AI inference costs separately in the P&L statement, you can see true AI margins, avoid hiding deterioration inside blended SaaS margins, and clearly distinguish AI economics from legacy SaaS economics.
• Compute leverage ratio: This metric measures how efficiently the business converts compute spend into revenue. It shows whether your AI margins are improving as you scale.
• AI-adjusted “Rule of 40”: This updated metric recalibrates the traditional growth and profitability benchmark to account for AI’s lower gross margins and variable inference costs, giving a more accurate picture of business health for AI-native companies.

Behavioral and value signals

• Time-to-first outcome: Replaces traditional onboarding metrics. Tracks how fast a customer reaches their first measurable result.
• Adoption: AI-native adoption is measured by workflow penetration and active agent density, not seat count. As AI replaces human-driven usage, the unit of adoption shifts from people to automated workflows and agents.
• Net credit retention (NCR): Credit-volume retention across the customer base, tracked separately from net recurring revenue to avoid price-change impact.

Along with these new metrics, the industry’s transformation is prompting companies to retire or recalibrate old SaaS measures, including per-seat ARR as a primary key performance indicator (KPI), traditional magic number calibrated to subscription dynamics, unadjusted Rule of 40, customer success metrics tied to human touchpoints, and blended gross margin without AI COGS carve-outs.

What does this mean for enterprise value calculations?

As the internal metrics of success change, so do the ways the investment community measures growth and long-term viability.

Increasingly, a company’s valuation multiple depends on whether its revenue behaves like committed subscription ARR or volatile usage ARR, and the commit‑to‑burndown ratio is the metric investors use to decide where the company fits.

For example, a business with 80% committed credit ARR could trade closer to subscription comps and one with 80% burndown could trade closer to usage comps even though both have the same types of customers. Being able to proactively explain the commit‑to‑burndown mix can help companies avoid undervaluation.

In addition, utilization is expected to replace net promoter scores and seat usage as the primary predictor of churn or expansion. Low utilization guarantees downsizing at renewal, so companies must track utilization cohorts the same way SaaS tracks logo retention cohorts today.

We’re also seeing an inversion of the operating model, with R&D and COGS moving up the P&L and sales and marketing (S&M) and customer success (CS) moving down or sideways. The net operating leverage profile is structurally different from classical SaaS, and the cost-to-scale curve looks different too.

Finally, credit margin engineering is a hidden value-creation lever. The gap between price per credit and cost per credit is set by the software vendor and can be optimized. Most operators have barely started managing this rigorously, and the ones who do will pull away on margin.

What this means for leaders, boards and investors

The shift from classic SaaS metrics to new AI‑native measures isn’t cosmetic. It represents the seismic change the industry is experiencing as AI matures and transforms products and organizations.

While these metrics — and perhaps others yet to be determined — may evolve over time, there is no doubt they are already changing how AI companies allocate capital, price products, incent sales teams, evaluate performance and communicate with investors.

It’s important to remember that SaaS metrics were practical tools for a specific era of software. As that era draws to a close, winning companies will choose new metrics that shape behavior and drive smart decision-making.

The views reflected in this article are the views of the author and do not necessarily reflect the views of Ernst & Young LLP or other members of the global EY organization.

This article is published as part of the Foundry Expert Contributor Network.
Want to join?

Oracle is expanding its Cloud@Customer on-premises portfolio with a managed database offering that it says will enable enterprises to run databases, applications, and AI agents in their own data centers, helping CIOs modernize mid-sized workloads while meeting data residency, regulatory, and low-latency requirements.

The hybrid cloud offering, Base Database Cloud@Customer, combines existing database and infrastructure services such as the Base Database Service and Data Infrastructure Cloud@Customer X11 platform. It is designed for enterprises that do not need the scale of Exadata Cloud@Customer but still want their infrastructure and AI capabilities on-premises, managed by Oracle, the company said.

The Cloud@Customer X11 platform itself consists of two Oracle X11 compute servers and shared all-flash storage, offering up to 60 usable processor cores and 660 GB of memory per server, 47.2 TB of storage, and 10/25 GbE networking.

For regulated industries or restricted connectivity

Analysts see the new offering filling a gap for enterprises that want the operational and economic benefits of the cloud but cannot send their data to a public cloud because of legal restrictions or technology limitations.

These enterprises, according to Ashish Chaturvedi, executive research leader at HFS Research, are likely to be in regulated industries such as financial services, healthcare, government, and defense that must comply with data residency requirements, or needing low-latency access from remote sites to operational databases.

The offering could also appeal to enterprises modernizing mid-sized workloads at remote locations or within individual business units that could never justify the investment in a full Exadata rack, said Amit Chandak, chief analytics officer at IT consulting firm Kanerika.

In all cases, Chaturvedi said, the appeal of the offering is its managed nature, which takes away the burden of looking after the underlying infrastructure.

Deployment and maintenance becomes easier too, said Michael Leone, principal analyst at Moor Strategy and Insights: “They get automation that mid-size teams rarely have the staff to build. Clustering, patching, standby databases, and backups arrive configured instead of hand-assembled because the offering is managed.”

The economics are equally compelling, Chaturvedi said. The pay-as-you-go pricing model, combined with online compute scaling, helps enterprises avoid overprovisioning and paying license fees for idle cores, which is a “classic waste” of fixed on-premises systems, he said.

Private AI behind the firewall

Beyond the operational and economic benefits, the architecture of the new offering enables databases, applications, VMs, and AI agents to be collocated on the same platform, removing what Chaturvedi called “the single biggest blocker” to AI adoption in regulated environments: the need to keep private data behind the firewall.

“For a CIO in a regulated sector who wants to deploy AI agents but can’t let regulated data touch an external model API, that’s a real unlock,” Chaturvedi said.

More so because most AI offerings, at least in their present form and state, cannot guarantee sensitive data protection, said Igor Ikonnikov, advisory fellow at Info-Tech Research Group.

Even if Base Database Cloud@Customer turns out more expensive than fully cloud-based options, “It’s still attractive as it eliminates reputational and economic risk caused by possible AI-induced data leakage,” Ikonnikov said.

The offering’s consolidation of databases, applications, and AI agents will also simplify deployment of AI-based workflows, said Forrester principal analyst Noel Yuhanna. “It reduces stack complexity and helps accelerate development cycles, deliver real-time data, and eliminate data movement challenges.”

Despite those advantages, Chandak cautioned that the offering is unlikely to see broad adoption outside Oracle’s existing customer base: “If a company isn’t already on Oracle, the pull is weak. You don’t buy into Oracle’s database just to get this.”

Enterprises seeking similar hybrid cloud capabilities have no shortage of alternatives: AWS, Microsoft, Google Cloud, IBM, Dell Technologies, and HPE all offer combinations of on-premises infrastructure, cloud management, and AI services.

However, those alternatives typically require customers to integrate multiple software and hardware components rather than consume them as a single managed offering.

Oracle’s differentiation, although narrow, is hard to match, Chaturvedi said: “The vertical integration of database, engineered hardware, cloud management, high-availability architecture, and now private AI, all engineered together and delivered as a managed on-prem subscription should be genuinely convenient and attractive.”

The offering is compatible with Oracle AI Database 26ai and Oracle Database 19c in Enterprise Edition and Standard Edition configurations. It also supports Oracle Real Application Clusters, Oracle Data Guard, and Zero Data Loss Recovery Appliance through Oracle-managed cloud automation for high availability and disaster recovery, the company said.

Base Database Cloud@Customer is now generally available, Oracle said. It did not provide pricing.

This article first appeared on CIO.

Oracle is expanding its Cloud@Customer on-premises portfolio with a managed database offering that it says will enable enterprises to run databases, applications, and AI agents in their own data centers, helping CIOs modernize mid-sized workloads while meeting data residency, regulatory, and low-latency requirements.

The hybrid cloud offering, Base Database Cloud@Customer, combines existing database and infrastructure services such as the Base Database Service and Data Infrastructure Cloud@Customer X11 platform. It is designed for enterprises that do not need the scale of Exadata Cloud@Customer but still want their infrastructure and AI capabilities on-premises, managed by Oracle, the company said.

The Cloud@Customer X11 platform itself consists of two Oracle X11 compute servers and shared all-flash storage, offering up to 60 usable processor cores and 660 GB of memory per server, 47.2 TB of storage, and 10/25 GbE networking.

For regulated industries or restricted connectivity

Analysts see the new offering filling a gap for enterprises that want the operational and economic benefits of the cloud but cannot send their data to a public cloud because of legal restrictions or technology limitations.

These enterprises, according to Ashish Chaturvedi, executive research leader at HFS Research, are likely to be in regulated industries such as financial services, healthcare, government, and defense that must comply with data residency requirements, or needing low-latency access from remote sites to operational databases.

The offering could also appeal to enterprises modernizing mid-sized workloads at remote locations or within individual business units that could never justify the investment in a full Exadata rack, said Amit Chandak, chief analytics officer at IT consulting firm Kanerika.

In all cases, Chaturvedi said, the appeal of the offering is its managed nature, which takes away the burden of looking after the underlying infrastructure.

Deployment and maintenance becomes easier too, said Michael Leone, principal analyst at Moor Strategy and Insights: “They get automation that mid-size teams rarely have the staff to build. Clustering, patching, standby databases, and backups arrive configured instead of hand-assembled because the offering is managed.”

The economics are equally compelling, Chaturvedi said. The pay-as-you-go pricing model, combined with online compute scaling, helps enterprises avoid overprovisioning and paying license fees for idle cores, which is a “classic waste” of fixed on-premises systems, he said.

Private AI behind the firewall

Beyond the operational and economic benefits, the architecture of the new offering enables databases, applications, VMs, and AI agents to be collocated on the same platform, removing what Chaturvedi called “the single biggest blocker” to AI adoption in regulated environments: the need to keep private data behind the firewall.

“For a CIO in a regulated sector who wants to deploy AI agents but can’t let regulated data touch an external model API, that’s a real unlock,” Chaturvedi said.

More so because most AI offerings, at least in their present form and state, cannot guarantee sensitive data protection, said Igor Ikonnikov, advisory fellow at Info-Tech Research Group.

Even if Base Database Cloud@Customer turns out more expensive than fully cloud-based options, “It’s still attractive as it eliminates reputational and economic risk caused by possible AI-induced data leakage,” Ikonnikov said.

The offering’s consolidation of databases, applications, and AI agents will also simplify deployment of AI-based workflows, said Forrester principal analyst Noel Yuhanna. “It reduces stack complexity and helps accelerate development cycles, deliver real-time data, and eliminate data movement challenges.”

Despite those advantages, Chandak cautioned that the offering is unlikely to see broad adoption outside Oracle’s existing customer base: “If a company isn’t already on Oracle, the pull is weak. You don’t buy into Oracle’s database just to get this.”

Enterprises seeking similar hybrid cloud capabilities have no shortage of alternatives: AWS, Microsoft, Google Cloud, IBM, Dell Technologies, and HPE all offer combinations of on-premises infrastructure, cloud management, and AI services.

However, those alternatives typically require customers to integrate multiple software and hardware components rather than consume them as a single managed offering.

Oracle’s differentiation, although narrow, is hard to match, Chaturvedi said: “The vertical integration of database, engineered hardware, cloud management, high-availability architecture, and now private AI, all engineered together and delivered as a managed on-prem subscription should be genuinely convenient and attractive.”

The offering is compatible with Oracle AI Database 26ai and Oracle Database 19c in Enterprise Edition and Standard Edition configurations. It also supports Oracle Real Application Clusters, Oracle Data Guard, and Zero Data Loss Recovery Appliance through Oracle-managed cloud automation for high availability and disaster recovery, the company said.

Base Database Cloud@Customer is now generally available, Oracle said. It did not provide pricing.

This article first appeared on CIO.

Oracle is expanding its Cloud@Customer on-premises portfolio with a managed database offering that it says will enable enterprises to run databases, applications, and AI agents in their own data centers, helping CIOs modernize mid-sized workloads while meeting data residency, regulatory, and low-latency requirements.

The hybrid cloud offering, Base Database Cloud@Customer, combines existing database and infrastructure services such as the Base Database Service and Data Infrastructure Cloud@Customer X11 platform. It is designed for enterprises that do not need the scale of Exadata Cloud@Customer but still want their infrastructure and AI capabilities on-premises, managed by Oracle, the company said.

The Cloud@Customer X11 platform itself consists of two Oracle X11 compute servers and shared all-flash storage, offering up to 60 usable processor cores and 660 GB of memory per server, 47.2 TB of storage, and 10/25 GbE networking.

For regulated industries or restricted connectivity

Analysts see the new offering filling a gap for enterprises that want the operational and economic benefits of the cloud but cannot send their data to a public cloud because of legal restrictions or technology limitations.

These enterprises, according to Ashish Chaturvedi, executive research leader at HFS Research, are likely to be in regulated industries such as financial services, healthcare, government, and defense that must comply with data residency requirements, or needing low-latency access from remote sites to operational databases.

The offering could also appeal to enterprises modernizing mid-sized workloads at remote locations or within individual business units that could never justify the investment in a full Exadata rack, said Amit Chandak, chief analytics officer at IT consulting firm Kanerika.

In all cases, Chaturvedi said, the appeal of the offering is its managed nature, which takes away the burden of looking after the underlying infrastructure.

Deployment and maintenance becomes easier too, said Michael Leone, principal analyst at Moor Strategy and Insights: “They get automation that mid-size teams rarely have the staff to build. Clustering, patching, standby databases, and backups arrive configured instead of hand-assembled because the offering is managed.”

The economics are equally compelling, Chaturvedi said. The pay-as-you-go pricing model, combined with online compute scaling, helps enterprises avoid overprovisioning and paying license fees for idle cores, which is a “classic waste” of fixed on-premises systems, he said.

Private AI behind the firewall

Beyond the operational and economic benefits, the architecture of the new offering enables databases, applications, VMs, and AI agents to be collocated on the same platform, removing what Chaturvedi called “the single biggest blocker” to AI adoption in regulated environments: the need to keep private data behind the firewall.

“For a CIO in a regulated sector who wants to deploy AI agents but can’t let regulated data touch an external model API, that’s a real unlock,” Chaturvedi said.

More so because most AI offerings, at least in their present form and state, cannot guarantee sensitive data protection, said Igor Ikonnikov, advisory fellow at Info-Tech Research Group.

Even if Base Database Cloud@Customer turns out more expensive than fully cloud-based options, “It’s still attractive as it eliminates reputational and economic risk caused by possible AI-induced data leakage,” Ikonnikov said.

The offering’s consolidation of databases, applications, and AI agents will also simplify deployment of AI-based workflows, said Forrester principal analyst Noel Yuhanna. “It reduces stack complexity and helps accelerate development cycles, deliver real-time data, and eliminate data movement challenges.”

Despite those advantages, Chandak cautioned that the offering is unlikely to see broad adoption outside Oracle’s existing customer base: “If a company isn’t already on Oracle, the pull is weak. You don’t buy into Oracle’s database just to get this.”

Enterprises seeking similar hybrid cloud capabilities have no shortage of alternatives: AWS, Microsoft, Google Cloud, IBM, Dell Technologies, and HPE all offer combinations of on-premises infrastructure, cloud management, and AI services.

However, those alternatives typically require customers to integrate multiple software and hardware components rather than consume them as a single managed offering.

Oracle’s differentiation, although narrow, is hard to match, Chaturvedi said: “The vertical integration of database, engineered hardware, cloud management, high-availability architecture, and now private AI, all engineered together and delivered as a managed on-prem subscription should be genuinely convenient and attractive.”

The offering is compatible with Oracle AI Database 26ai and Oracle Database 19c in Enterprise Edition and Standard Edition configurations. It also supports Oracle Real Application Clusters, Oracle Data Guard, and Zero Data Loss Recovery Appliance through Oracle-managed cloud automation for high availability and disaster recovery, the company said.

Base Database Cloud@Customer is now generally available, Oracle said. It did not provide pricing.

Dubbed the “Genius Hacker,” Park Chan-am began his white hat hacker journey at the precocious age of 11, winning awards at domestic and international hacking competitions since his teenage years.

He has since served as a cybersecurity advisor for various Korean government agencies, including the National Police Agency, and has played a key role in the country’s defense against Democratic People’s Republic of Korea (DPRK)-affiliated cyberattacks.

At a seminar held this month as part of the 15th Information Security Day event hosted and organized by government agencies including the Ministry of Science and ICT and the Korea Internet and Security Agency (KISA), Park, now CEO of security firm Steelion, explained the changes in the security environment in the AI ​​era and the priority response tasks for information security organizations under the theme of “Major AI Threats and Security Priorities.”

“While AI is a new technology, the core of security ultimately lies in access control, supply chain management, and human verification,” he said.

Like many security experts, Park sees AI fundamentally changing the speed of cyberattacks. In the past, infiltrating a corporate network required significant time analyzing a range of software systems to find exploitable vulnerabilities — a task that the use of AI has significantly accelerated.

“In the past, it took at least four weeks to find vulnerabilities, but now it takes less than a day,” he said. “In the era of AI, all software installed within a company becomes a much more critical target for attacks.”

As a result, securing internal software and the software supply chain are paramount — and require a different perspective on accountability, Park noted.

“Clients often ask, ‘Isn’t this just a product made by the vendor?’” he said. “From the moment it is installed in the company system, that software is no longer a vendor issue but part of the corporate system.”

“We are now in an era where third-party issues can no longer be attributed solely to vendor responsibility,” he stressed.

MCP under threat

Park also sees authorization management as a key challenge security teams will face in the agentic era. For example, companies have been increasingly utilizing Model Context Protocol (MCP)-based AI agents to read emails, analyze documents, and connect internal systems with various business tasks. But as the workload handled by AI agents increases, every step an AI agent takes, reading external documents and interacting with internal systems, can become a potential attack vector.

Prompt contamination through malicious documents and the leakage of internal information via agents with excessive privileges are quite realistic scenarios, Park said. In particular, he pointed out that issues that previously ended as minor problems, such as residual privileges left by former employees or outsourced personnel, could escalate into major incidents as AI automatically links these elements together.

“When introducing AI, permissions must be designed before functions,” he said. “The entire MCP process must be approached as a single attack path.”

The ever-widening blast radius of AI testing

Local AI testing environments are becoming a dangerous security blind spot that information security leaders often overlook. Rapid experimentation with open-source AI, such as LLaMA-based models, on personal or work PCs often results in servers or ports being left open, and if vulnerabilities are discovered, intrusion pathways immediately open up.

“When the [Ollama] remote code execution vulnerability was discovered in 2024, there were over 1,000 servers exposed to the internet, but recently in 2026, it has been confirmed that over 300,000 servers from the same targets are exposed,” said Park, adding that “the act of testing AI itself can become a new security risk.”

Vulnerability management on notice

Security operations must also change, Park stressed, noting that the number of alerts that security personnel must handle has increased tenfold, and in some cases up to a hundredfold, making it virtually impossible to respond to all vulnerabilities using the same standards.

As a solution, Park sees the Common Vulnerability Scoring System (CVSS) being insufficient for determining priorities. Instead, he suggested that vulnerability response priorities be determined by utilizing the Exploit Prediction Scoring System (EPSS), which predicts the actual likelihood of exploitation, along with the US government’s Known Exploited Vulnerabilities (KEV) list.

For example, if a vulnerability’s CVSS score is 7.5, it is not classified as critical, so it is likely to be pushed down the priority list. But the response priority changes completely if the same vulnerability is listed on the KEV list, has been exploited in actual ransomware attacks, and the probability of an attack based on EPSS has skyrocketed from 1% to 90% within two months. “You must consider these factors together to identify the vulnerabilities that actually need to be patched first,” he stressed.

“Amidst the vast noise known as the AI s​lop, the criteria for deciding what to patch first is now becoming a core competency for security personnel,” he added.

Park also presented new defense techniques applicable to the AI ​​era, such as methods to detect automated attacks by analyzing behavioral differences between humans and AI attackers, and proof of work (PoW) challenges that intentionally impose computational load on AI attackers to slow down their attacks. A prime example is filtering out abnormal access by analyzing mouse movements, keyboard input, and scrolling patterns.

“It is a more realistic strategy to reduce the burden on security teams by filtering out at least some attacks, rather than trying to block them 100%,” he said.

Even in the age of AI, technology alone cannot ensure complete security, he noted. “While AI can scan for threats broadly and quickly, verifying and confirming them ultimately falls to humans,” he said. “Humans are still important.”

Regelmäßige Netzwerk-Scans reichen für eine gehärtete Angriffsfläche nicht mehr aus. Um die Sicherheit von Unternehmensressourcen und Kundendaten zu gewährleisten, ist eine kontinuierliche Überwachung auf neue Ressourcen und Konfigurationsabweichungen erforderlich. Werkzeuge aus den Bereichen Cyber Asset Attack Surface Management (CAASM) sowie External Attack Surface Management (EASM) sind darauf ausgelegt, die Angriffsfläche von Unternehmen:

• zu quantifizieren,

• zu minimieren, und

• zu härten.

Das Ziel besteht dabei darin, den Angreifern möglichst wenig Informationen über das Security-Niveau des Unternehmens zu geben und gleichzeitig kritische Business Services aufrechtzuerhalten. Dabei spielt inzwischen auch Agentic AI eine immer größere Rolle.

12 Attack-Surface-Management-Tools

Die folgenden zwölf Lösungen unterstützen Sie dabei, Risiken zu identifizieren und zu managen.

Axonius Cyber Asset Attack Surface Management

Diese CAASM-Suite von Axonius deckt alle wichtigen Aspekte ab, wenn es um Attack Surface Monitoring geht. Das Tool erstellt zunächst ein Asset-Inventar, das automatisch aktualisiert und mit Kontext aus internen Datenquellen und Ressourcen angereichert wird.

Dabei ist es auch möglich, Monitoring-Prozesse aufzusetzen, die auf Grundlage von Richtlinien wie PCI oder HIPAA ablaufen. So lassen sich Konfigurationen oder Schwachstellen identifizieren, die diesen zuwiderlaufen und entsprechende Maßnahmen ergreifen.

Bugcrowd EASM

Bugcrowd hat im Mai 2024 Informer.io übernommen und dessen EASM-Angebot in seine Security-Plattform integriert. Diese automatisiert die Asset Discovery über Webapplikationen, APIs und andere “public facing”-Komponenten des IT-Stacks hinweg.

Assets überwacht die Lösung kontinuierlich, wobei identifizierte Risiken in Echtzeit priorisiert werden. Darüber hinaus stehen auch Zusatz-Services wie manuelle Risikoprüfungen oder Penetrationstests zur Verfügung. Das Workflow-basierte Response-System der Lösung verspricht eine einfachere Einbindung mehrerer Teams, indem existierende Ticketing- und Kommunikations-Tools integriert werden. Praktisch ist auch die Möglichkeit, Konfigurationsänderungen oder System Updates zu validieren, um sicherzustellen, dass identifizierte Bedrohungen tatsächlich bereinigt wurden.  

CrowdStrike Falcon Exposure Management

Crowdstrike hat sein Falcon-Surface-Angebot von einem Standalone EASM-Tool zu einem Kernbestandteil von Falcon Exposure Management ausgebaut. Die Lösung wird nun auch durch KI-nativen Code dabei unterstützt, Risiken zu identifizieren und auszuschalten. Darüber hinaus kommt die Technologie auch für Adversarial-AI-Szenarien zum Einsatz.

Die Crowdstrike-Lösung kann außerdem:

• Risiken mit dem Business-Kontext korrelieren,
• die Ausnutzbarkeit validieren und
• direkte Abhilfemaßnahmen über die Falcon-Plattform einleiten.

Unternehmen sollen sich mit dem Tool einen nachhaltigen Überblick über ihre Angriffsfläche verschaffen und Risiken oder Bedrohungen mit einer Vielzahl von Techniken aufspüren können. Dazu gehören etwa aktive, passive und API-basierte Scans, um mit dem Internet verbundene Ressourcen zu identifizieren.

Falcon Exposure Management ist nicht Teil des Enterprise-Softwarepakets von Crowdstrike. Es kann als Abonnementlizenz auf Basis der gemanagten Endpunkte erworben werden.

CyCognito Attack Surface Management

Das CAASM-Produkt von CyCognito bietet eine kontinuierliche Überwachung und Inventarisierung von Assets. Dabei spielt es keine Rolle, ob diese On-Premises, in der Cloud, bei einem Drittanbieter oder einer Tochtergesellschaft vorliegen.

Um den Triage-Prozess und die Risiko-Priorisierung zu erleichtern, kann auch Business-Kontext hinzugefügt werden (beispielsweise Beziehungen zwischen einzelnen Assets). Das hilft dabei, sich auf die wichtigsten Netzwerkrisiken zu konzentrieren. CyCognitos Tool verfolgt darüber hinaus auch Konfigurationsänderungen und ermöglicht so, neue Risiken für die Unternehmensinfrastruktur schnell zu identifizieren.

JupiterOne Cyber Asset Attack Surface Management

JupiterOne preist seine CAASM-Lösung als eine Möglichkeit an, “Cyber-Asset-Daten nahtlos in einer einheitlichen Ansicht zu aggregieren”. Der Kontext wird bei Bedarf automatisch hinzugefügt, und die Beziehungen zwischen den Assets können definiert und optimiert werden, um Schwachstellenanalyse und Incident-Response-Fähigkeiten zu verbessern.

Benutzerdefinierte Abfragen ermöglichen es Cybersecurity-Teams, komplexe Fragen zu beantworten, während der Asset-Bestand über eine interaktive Map durchsucht werden kann. Die Security-Tools, in die Sie bereits investiert haben, können Sie integrieren – was eine ganzheitliche, zentralisierte Perspektive auf das Security-Niveau zulässt.

Microsoft Defender External Attack Surface Management

Microsoft Defender EASM erkennt nicht verwaltete Assets und Ressourcen, die per Schatten-IT bereitgestellt werden oder sich auf anderen Cloud-Plattformen befinden. Sobald die Assets und Ressourcen identifiziert sind, sucht das Tool nach Schwachstellen auf jeder Ebene des Technologie-Stacks, einschließlich der zugrunde liegenden Plattform, App-Frameworks, Webanwendungen, Komponenten und des Kerncodes.

Defender EASM ermöglicht es IT-Profis, Schwachstellen in neu entdeckten Ressourcen schnell zu beheben, indem diese nach Entdeckung in Echtzeit kategorisiert und priorisiert werden. Naturgemäß lässt sich Defender EASM eng mit anderen Microsoft-Lösungen wie Security Copilot integrieren.

Outpost24 EASM

Der schwedische Anbieter Outpost24 hat 2023 den belgischen EASM-Anbieter Sweepatic übernommen und dessen Tool in seine Modul-Kollektion für Threat Intelligence, Data Leakage und Pentesting integriert. Diese EASM-Lösung ist sowohl Standalone, als auch als Managed Service erhältlich und kann Daten entweder passiv über DNS und andere TCP/IP-Details oder über direkte Verbindungen zu Cloud-Anbietern wie AWS und Azure sowie den Lösungen großer Softwareanbieter (etwa ServiceNow, Slack oder Atlassian) erfassen.

Palo Alto Networks Cortex Xpanse

Xpanse ist Teil der XSIAM-Produktsuite von Palo Alto, kann jedoch auch separat erworben werden. Das Standalone-Produkt hat allerdings einen etwas geringeren Funktionsumfang.

Das Palo-Alto-Tool unterstützt auch die Integration mit Tools von Drittanbietern wie Qualys, Jira und ServiceNow. Zudem verfügt das Produkt über eine beeindruckende Auswahl an vorgefertigten Detection-Regeln, Widgets, um Queries und Discovery-Routinen zu erstellen und anpassbare Daten-Dashboards aufzusetzen.

Rapid7 Surface Command

Surface Command ist nur eines von zahlreichen Modulen, das Rapid7 im Angebot hat (unter anderem Vulnerability und Incident Management sowie Cloud-Native Security). Das Tool bringt Threat Exposure, Detection und Response unter einen Nenner und verspricht eine kontinuierliche „Vogelperspektive“ über sämtliche Schwachstellen – vom Endpunkt bis hin zur Cloud.

Das Rapid-7-Tool ist darauf konzipiert, blinde Flecken in der Security aufzuspüren sowie Reaktion und Behebung zu beschleunigen. Für letzteres sind zudem auch agentenbasierte KI-Funktionen enthalten.

RiskProfiler EASM

Über die RiskProfiler-Plattform lassen sich sämtliche externen Bedrohungen managen. Das Tool ermöglicht beispielsweise Dark-Web-Monitoring, digitales Monitoring sowie Hacking-Kampagnen, Schwachstellen und Supply-Chain-Angriffe zu tracken. Die hieraus gewonnenen Bedrohungsinformationen werden von KI-Agenten zu einem einheitlichen Korpus verdichtet.

Bestandteil des Tools sind zudem mehr als 13.000 vorinstallierte Regeln, die sowohl Open-Source- als auch eigene proprietäre Algorithmen miteinander verbinden. Auch die Risikobewertungen von Drittanbietern werden analysiert. Ein anpassbares Management-Dashboard visualisiert die Daten in diversen Ansichten. 

SOCRadar AttackMapper

Mit AttackMapper (ein Teil der Tool-Suite für SOC-Teams), will SOCRadar, den Anwendern die Sicht der Angreifer auf die Assets ermöglichen. Das Tool überwacht Assets mithilfe von Agentic AI dynamisch in Echtzeit, identifiziert neue oder veränderte und analysiert sie auf potenzielle Schwachstellen.

Die Ergebnisse werden mit bekannten Angriffsmethoden korreliert, um den Entscheidungsfindungs- und Triageprozess zu unterstützen. Dabei überwacht AttackMapper nicht nur Endpunkte und Software Vulnerabilities, sondern auch SSL-Schwachstellen, abgelaufene Zertifikate, DNS-Einträge und Konfigurationen. Das Tool erkennt selbst Website-Defacement-Angriffe, was entscheidend sein kann, um die Markenreputation zu schützen.

Tenable Attack Surface Management

Tenable hat schon seit einigen Jahren Tools im Angebot, um Schwachstellen aufzuspüren – und auch die aktuelle Tool-Suite wird modernen IT-Sicherheitsanforderungen gerecht. Bei Tenable Attack Surface Management handelt es sich um das EASM-Modul des Unternehmens, das in dessen Exposure-Management-Plattform „One“ integriert ist.

Tenable Attack Surface Management liefert Kontext und Details zu Assets und Schwachstellen, allerdings nicht nur aus technischer Sicht, sondern auch auf Business-Ebene, was für eine umfassende Priorisierung der Maßnahmen erforderlich ist.

7 Fragen vor dem ASM-Invest

Die folgenden Fragen sollten Sie sich und potenziellen Anbietern von Attack-Surface-Management-Lösungen stellen, bevor Sie einen Vertrag unterzeichnen.

• Benötigt unser Unternehmen eine EASM- oder eine CAASM-Lösung? Die Antwort darauf hängt davon ab, ob Sie nach internen oder externen Angreifern suchen – und wie groß der Anteil Ihrer lokalen Infrastruktur ist.
• Wie umfangreich – und effektiv – ist das Tool automatisiert? Erkennt es zuverlässig alle anfälligen Ressoucren, einschließlich digitaler Zertifikate, offengelegter Anmeldedaten und mit dem Netz verbundene Server und Services? Welche Metadaten und weiteren Details liefert die Lösung?  
• Wie behebt die Lösung Schwachstellen, wenn sie welche findet? Läuft das automatisiert ab oder sind manuelle Eingriffe erforderlich?
• Unterstützt das Tool Continuous Monitoring? Und falls ja: Wie werden Veränderungen nachgehalten?
• Welche Schwachstellen werden wie mit anderen SOC-Tools geteilt oder integriert?
• Gibt es unterschiedliche Dashboards für Management- und andere Zwecke? Beziehungsweise: Wie lässt sich das Tool auf unterschiedliche Benutzergruppen anpassen?
• Wie sieht ihre Preisgestaltung im Detail aus? Stellen Sie sicher, dass Sie das Preisgefüge des Anbieters Ihrer Wahl wirklich verstehen. In den meisten Fällen sind Sie dabei mit komplexen, nutzungsabhängigen Abrechnungsmodellen konfrontiert.

(fm)

Dieser Beitrag ist im Original bei unserer Schwesterpublikation CSOonline.com erschienen.

With AI increasingly tucked into every cranny of the enterprise, someone has had to step up and provide the tools necessary to discover, track, and monitor all the agents and LLMs and keep them humming along in their various workflows. Thankfully, the DevOps world answered the call, building the tools to support our new overlords in an emerging subdiscipline interchangeably called “AIOps,” “AgentOps,” and sometimes “agent observability.”

Many of the challenges involved in AgentOps are similar to those tackled by traditional DevOps tools and processes. After all, at their foundation, LLMs are just software running on hardware somewhere. Typical issues involving RAM and disk space are just as important in the agent world, maybe more so because AI operations are even more greedy about consuming storage than regular software is.

Many of the companies supporting agent observability are big names in DevOps circles, having adapted their stacks to address the idiosyncrasies of modern LLMs. IT teams maintaining enterprise agents can treat the LLMs as just one node in a big graph filled with services that are constantly swapping packets and triggering software jobs. Latency and resource constraints must be managed because end-users don’t care whether it’s an LLM, a database, or a plain-old Python script that’s failing, bringing their work to a grinding halt.

But new AI-specific challenges are opening the door to newcomers that are building tools with the peculiarities of LLMs in mind — for example, keeping deeper logs filled with records of prompts. LLMs are also often very non-deterministic by design, making it trickier to pinpoint failure modes. And then there’s the fact that an agent will give a perfectly intelligent answer one minute and hallucinate the next.

Relying on many of the same approaches that DevOps tools do, AgentOps tools watch for misbehavior and flag anything out of the ordinary for deeper analysis. This may be as simple as fixing slow responses, but it can also include AI hallucinations and other issues born of LLMs’ non-determanism.

Teams trying to choose which agent observability tools is best for their use case should look at the size and nature of their agentic systems and projects. Are they adding AI agent features to an existing product or application, or are they building agentic systems from scratch? Are they more focused on maintaining a stable LLM operation or iterating on new approaches? Is AI the center of attention or just an add-on that’s meant to improve an existing stack?

The AgentOps and agent observability options listed below share many of the same features but differ in their focus and their attention to the challenges organizations will encounter when incorporating agents into their stacks. Each tool offers a worthwhile place to start understanding how to care for the growing presence of AI in the production world.

AgentOps.ai

When teams of agents work together, tracking the conversations are essential for understanding and debugging what’s happening. The SDK from AgentOps.ai records events so that the creators can replay past behavior to track details such as token counts, spending, latency, and more. Available as a service and on-premises.

Pricing: Starts at $40 per month plus usage costs at $0.20 per 1M tokens

Standout feature: Replay analytics with “time-travel debugging”

Best suited for: Complex agent debugging

Arize Phoenix

Debugging prompts and LLM responses requires a nuanced understanding of just what’s happening, in part because of the non-determinism that often enters the process. Phoenix from Arize supports this process with robust tracing and the ability to score the results for more precise iteration. Their system can track the results and tool calls from a variety of major platforms (Anthropic, AWS, OpenAI, etc.) that are initiated by the major frameworks (LangChain, LlamaIndex, DSPy, etc.). The result is insight into what data is triggering what chain of responses.

Pricing: Small free tier; Pro plan starts at $50 per month plus costs tied to events

Standout feature: LLM-as-a-Judge metrics for tracking quality

Best suited for: Teams focusing on iterating for accuracy and quality

BigPanda

BigPanda has always offered solutions for tracking performance of complex systems. Now the company is drilling deeper into the challenge of detecting and ending the problems that come from models that go awry. BigPanda’s main system relies on historical data and machine learning algorithms to flag issues. Its own agent layer connects the problematic nodes and errant models while dispatching alerts to the right team members.

Pricing: “Value-based” table on request

Standout feature: Automated triage for faster response

Best suited for: Large teams seeking to reduce alert fatigue from large customer base

Braintrust

Setting up an effective improvement cycle for an AI agent requires a strong feedback loop from production data to the agent’s next generation. Braintrust watches the production workload and creates test vectors that expose how an agent may be drifting, regressing, or departing from its path. The tool automates much of the testing and scoring feedback loop so problematic patterns can be discovered and addressed. A core part of the offering is a specialized data store that can track large and sometimes deeply nested collections of tests and their results. Their approach may be summarized by one of their tag lines: “trace everything.”

Pricing: Free starter tier; Pro plan starts at $249 with some usage-based costs covered

Standout feature: Highly scalable trace ingestion

Best for: Teams developing strong guardrails through continuous testing

Chronicle Labs

When it’s time to release a new version of an agent into the wild, the platform from Chronicle Labs specializes in staging it and testing it with a collection of use tests and regression cases. The tools are also helpful during development cycles. “Backtest your agent against reality,” their sales material promises, with a set of tools that mines the production telemetry for solid test vectors that stress every part of the agent with prompts and challenges that the agent will encounter after leaving the safety of the lab.

Pricing: On request

Standout feature: Back-testing options for complex testing regimes

Best for: Teams chasing strong models with good fidelity to reality

Comet Opik

Building a dashboard for tracking every in-flow and out-flow to agents is one way to be ready to watch for and solve problems. Opik from Comet is just such a tool. The DevOps teams can track each call and add its own automated routines to examine the results, score them based on 30-plus metrics, and if desired, send it off to another LLM to evaluate the results. Agents that are constantly failing stand out. DevOps teams can also ask questions like, “Who is using this model and racking up all of the bills?” The same goes for MCP skills and other cogs in the machine.

Pricing: Free tiers for open source and small projects; Pro plan starts at $19 per month with usage limits

Standout feature: Auto-scoring with 30-plus metrics for evaluating traces

Best for: Teams focusing on RAG and agentic workflows

Datadog

DevOps teams that rely on Datadog to track logs across collections of services can also use it to track LLM operations, which are, of course, just another source and sink for data. It will track performance such as time to first token and offer insight into what might be causing an issue, such as lack of memory. Results then get plugged into the same cost-tracking mechanism so the bean counters can predict when the budget will run out. After all, the CFO likely doesn’t care whether the bill comes from an LLM or an old-school S3 storage bucket. Datadog integrates AI into their tools by treating these models as just another source of data.

Pricing: Small free tier with multiple paid tiers for various levels of enterprise monitoring

Standout feature: Large installed base with broad focus on more than LLMs

Best for: Large enterprise teams working with established infrastructure

Dynatrace

For more than 20 years, Dynatrace has been delivering tools that track dataflows across the full stack. Now that AIs are finding roles in many of the nodes in this complex graph, they’re expanding to track how various AI agents can interact. They want to build one platform that helps track the root cause and, often now, deploy solutions autonomously. They want to focus on being ready to support complex networks of agents that detect problems in either performance or security and then work within defined guardrails to fix them. Determining the right role for their own AI-powered agents is a key part of the product.

Pricing: Plans start at $7 per month with larger plans designed for full enterprise monitoring

Standout feature: High level of autonomous monitoring designed for large installations

Best for: Complex, hybrid environments mixing LLMs with traditional services

Galileo

Placing some AI systems into production is often a harrowing experience because the actual performance is impossible to predict, even with the most rigorous tests. Galileo offers guardrails that track performance and watch for any behavior that deviates from the ground truth. Their “LLM-as-judge” systems are distilled into compact models that can be run locally for lower costs and faster performance.

Pricing: Small free tier; Pro plans start at $50 per month with usage-based limits and costs

Standout feature: Real-time guardrails for deployed agents

Best for: Security-conscious installations that need to defend against hallucination and data leakage

Grafana Labs

Long the go-to source for open source telemetry, Grafana Labs now tracks performance of AI models in constellations of services. Grafana tracks the evolution of answers across the agentic network to recognize how small changes or hallucinations can spin out of control. It bills its system as “actually useful AI” and has even trademarked it. Its cloud assistant can configure and reconfigure the Grafana dash to offer the right level of observability. Its system includes AI-level analysis that can flag models that are responding quickly but offering bad answers because of problems such as model drift or context degradation.

Pricing: Basic free tier; Pro plan begins at $19 per month, includes better retention and some usage-based fees 

Standout feature: Full-stack tool with fully integrated LLM tools

Best for: Large, enterprise-scale system adding AI

Helicone

Sometimes shoehorning in another tool into the chain can be tricky. Helicone is designed as a smart network proxy that will route all model requests while keeping solid debugging records from the data as it goes by. The data it captures can be turned into nice charts that make it easy to spot latency issues or model failures. Naturally, tracking AI spend is also a feature in much demand as bills continue to climb.

Pricing: Small free tier; Pro plan starts at $79 per month, includes features such as team collaboration and improved querying

Standout feature: Proxy-based integration

Best for: Development teams who want to add better monitoring features quickly

Laminar

Tracking agents in development and production means building strong storehouses of data enumerating what happened. Laminar works closely with OpenTelemetry to follow agents operating in production so that flaws and failure modes can be understood from log files stored efficiently with their own compression scheme. Developers can search through traces with an SQL-ish language and Laminar’s transcript view illuminates what happened. When necessary, the traces can enable developers to scroll back in time and replay the same inputs for debugging. The goal is to offer deep insights with high-level visibility of how well the agents are meeting business objectives.

Pricing: Small free tier; “Hobby” tier that adds more features at $30; Pro level starts at $150 per month

Standout feature: Open-source license makes self-hosting a viable option

Best for: Teams fully able to leverage open-source responsibilities

LangChain LangSmith

Real-time data from agents is essential for managing any mutli-agent system in production. LangSmith from LangChain traces costs, tools, and progress toward solutions for a wide collection of agents using SDKs for Python, TypeScript, Go, and Java. The OpenTelemetry-based solution watches for anomalies, issuing warnings and alerts through dashboards and communication channels such as PagerDuty. Deeper analysis can reveal issues such as topic clustering or odd patterns of failure. Coordination with agent deployment platforms such as LangGraph and deepagents ensures greater focus on successful resolution of assignments.

Pricing: Free for solo developers; Pro teams start at $39 per person per month 

Standout feature: Systematic approach to regression testing of prompts

Best for: Teams relying on LangChain and LangGraph frameworks for supporting complex agentic behavior

Lunary

Watching the user experience is essential for building AI applications such as chatbots and assistants. Lunary offers a proxy that traces all interactions and then builds analytical dashboards for measuring metrics such as user satisfaction or model costs. One common usage is finding frequent topics and looking at the responses to ensure they deliver. When prompts aren’t perfect, Lunary lets teams iterate on the prompt text until the right answers are coming out. Its proxy structure and common API format enables Lunary to promise to work with “any LLM, any framework.”

Pricing: Free tier; Pro plan starts at $20 per month

Standout feature: Deep integration with humans for reviewing and optimizing results

Best for: Startups focused on rapid prompt innovation

NewRelic

The platform that began tracking performance of some web applications is now powerful enough to track the flows of data through complex agentic ecologies. NewRelic’s AI-driven monitoring watches for golden signals that can indicate misbehavior or worse throughout the entire lifecycle. It tracks every detail of the interactions through protocols such as MCP and then makes this available to the AI engineers responsible for performance. The dashboard provides the insights necessary to watch for toxic behavior, overt bias, drift, and overblown hallucinations. Predicting and maybe even controlling the cost is also a growing role as tokenomics becomes as important as response time.

Pricing: Free tier; Pro plan fees available through website

Standout feature: Full-stack support with hundreds of integrations with other tools

Best for: Established enterprise teams mixing in AI

Nova AI Ops

The goal of Nova AI Ops is to deliver a team of agents that watch over a cloud and make it, at least partially, self-healing. Each agent uses a mixture of predictive AI and machine learning to watch cloud telemetry reports for anomalies. Then they calculate the “blast radius” and decide whether this is a problem that can be fixed automatically “while you sleep” or saved for the human supervisors. These tools are aimed not just on LLM operations but on the stack as a whole.

Pricing: Small free tier; Standard pricing  begins at $40 per user per month with usage billing

Standout feature: Focus on software reliability engineering helps teams deliver stable stacks

Best for: Teams that want to integrate LLMs into incident response and stability management

Splunk

The platform that began delivering smart logging is now fully AI capable, offering solutions that can watch over agents with much the same way that it continues to track microservices. Splunk now includes a fairly large amount of predictive AI for learning from the information in the logs and then turning this learning into fast solutions. This AI assistant can track deployed AI models connected by protocols such as MCP and watch over behavior while delivering the ability for users to drill down and explore what’s working and what’s failing. Their AI Canvas is meant to offer a central hub where the AI scientists can track both the local behavior of the models as well as their role in a larger data ecosystem.

Pricing: Activity-based pricing tracks usage of LLM backends and storage

Standout feature: Ready to scale to large enterprise stacks

Best for: Teams with legacy systems that are folding in agentic options

SuperPenguin

One of the most important parts of an AI service is the bill. SuperPenguin is a product designed to track consumption and make predictions so that the CFO won’t be surprised. The goal is to provide solid estimates about the total cost of each product by allocating costs to customers, features, and teams. If there’s a sudden shift, a “spike detector” will raise an alarm so that dev teams can ensure that the AI spend is worth it.

Pricing: Small free tier for experimentation; Growth tier for teams, starting at $30 per month; Pro tier offers deeper options starting at $200 per month

Standout feature: Strong accounting with invoice reconciliation and PR-level usage tracking

Best for: Teams that need precise cost accounting

Vellum

Prompt engineers spend time fussing over the details of tweaking, improving, and enhancing the words that guide the LLM. Vellum started as a company that would provide the pipeline so that you could manage and improve the prompts that ran again and again. Now the system is growing more powerful, offering a higher level of automation that lets you meta-manage the prompt chain. They’ve also begun marketing it as a form of personal assistant with pre-built connections to many of the major services such as Gmail. Its llm-cost-optimizer can juggle multiple options while finding a cheaper way to execute a prompt, a process the company suggests can save 60% or more.

Pricing: Open-source free tier; Pro plan starts at $35 per month

Standout feature: Focus on multi-model pipelines for true agentic solutions

Best for: Product teams with complex prompt engineering workflows

When Apple sued OpenAI last week, the argument it made was that former employees had stolen Apple data and then used it to benefit OpenAI. 

The technical details — an employee used “a rare, previously unknown authentication bug to access Apple’s shared network folders” — are interesting. But the larger story is Apple’s ridiculous attempt to stop its people from using anything they learned at Apple in other jobs.

“Hiring managers don’t mind some files being brought into the org during onboarding, but suddenly take umbrage when that same employee exits with some files later on,” said Mike Wilkes, enterprise CISO at Aikido Security. “Legal should be equally concerned about both events.”

The lawsuit focused on Chang Liu, an employee who had been recruited to work at OpenAI after working at Apple for eight years as a Senior System Electrical Engineer. The full text of the filing depicts a comedy of errors by Apple, offering the perfect “do not do” list of handling employee resignations — especially when they’re going to a direct competitor. 

“When Apple contacted Mr. Liu to sign Apple’s confidentiality reminder, schedule an exit interview, and confirm that he had returned his devices and complied with other exit procedures, Mr. Liu did not respond.” And “after leaving Apple, Mr. Liu failed to return an Apple-issued work laptop that he had previously authenticated to Apple’s network.”

First, typical procedure for handling departures is to tie the return of all equipment and the signing of documents to any final payments. With Apple, that is likely to be a large amount of money. The lawsuit does not say whether Apple exerted any financial pressure on their employee for compliance. 

But in terms of equipment with high-level access, why weren’t all privileges revoked, both for the employee and any and all company-issued devices? Did they not maintain a remote-wipe capability for these devices? Although remote-wipe is usually used when devices are missing or stolen, it should work as well when a departing employee refuses to return company equipment. 

According to Apple, Liu apparently had help at Apple from Tang Yew Tan, who was supposedly also interviewing with OpenAI. “While employed by OpenAI, [Liu] accessed and used his former colleague’s Apple-issued work computer that was authenticated to Apple’s network, without Apple’s authorization.”

Apple tried to make much of this Liu’s fault. Legally, yes, there might be liability there; still, Apple made itself look as if it couldn’t protect its own data. “Upon discovering that he had this unauthorized access to Apple’s systems, [the former employee] did not report it, return his stolen Apple-issued work laptop or delete the program that allowed the access.” 

Really, Apple? Your data-protection plan relies on ex-employees to “delete the program that allowed the access”? I’m not so sure you didn’t bring some of this data-leakage on yourselves. 

This gets worse: “Over several weeks, while developing hardware for OpenAI, Mr. Liu surreptitiously accessed and downloaded dozens of Apple’s confidential hardware-related files, including voluminous, detailed information about unreleased products, engineering presentations, technical specifications, and proprietary project data.”

Setting aside the issue of privileges, access, and unreturned equipment that apparently had its own privileges, that statement points to massive data exfiltration from Apple systems. Even if it is coming from a current employee, why didn’t that raise any red flags? 

Let’s get back to the broader implications. When professionals move from one company to another, they — of course — are bringing their experience and knowledge with them. Can Apple reasonably tell them that they can’t do so? Isn’t that experience and knowledge exactly why another company would want to hire them?

Now, to be sure, stealing diagrams and product spec sheets is a clear violation. Let’s say Apple spent a lot of money on some hardware research projects. A member of that technical team would learn an awful lot, all on Apple’s dime. 

But is it fair and reasonable for Apple to say that the former employee can’t leverage that knowledge at his or her next job? 

This brings us back to the point Wilkes made: If Apple is going to try to prevent any former employee from leveraging on-the-job experience, then it should instruct all new employees not to use anything they learned in a previous job. 

That would be ridiculous. Companies pay for experienced talent because of that experience. Why pay for expertise if you insist employees not leverage any of it?

Then there’s the amorphous nature of knowledge. So, it’s wrong to take detailed diagrams and spec details and hand them over to a new employer. But what if that worker heading out the door memorizes the documents (photographic memory) a day before resigning? Is a person prohibited from using something from memory?

There’s also the fruit-of-the-poisonous tree legal argument. Even if a former employee doesn’t directly use stolen data, what if their knowledge leads to other money-saving insights for the new employer? 

Given that Apple hires as many specialists as it loses to rivals, wouldn’t it make sense to leverage everything your workforce knows and then let new employers do the same? But before you do that, Apple, tighten your exiting employee tech controls. 

Then maybe you wont’t have to file lawsuits like this down the road.

Fortinet has added AI visibility and control capabilities to its endpoint security package to help enterprises better govern AI usage, reduce data exposure, and simplify security operations.

The vendor’s FortiEndpoint platform integrates antivirus, endpoint detection and response, VPN, zero trust network access, vulnerability management, and data protection. It feeds into Fortinet’s overall Security Fabric system to improve enterprise threat detection and response and simplify endpoint management and security policies, according to the company.

With the new release, FortiEndpoint gains improved AI visibility and controls, integrated data loss prevention, and a natural language-based AI agent to help security teams generate investigation summaries, identify high-risk devices, and troubleshoot issues.

“FortiEndpoint provides centralized visibility into AI applications and agents operating across managed endpoints. Security teams can identify sanctioned and unsanctioned tools, detect shadow AI, monitor adoption trends, and understand user activity through unified dashboards,” wrote Ankit Gupta, product and marketing leader for Fortinet, in a blog post about the enhancements.

“Organizations can’t govern AI instances they can’t see. As employees increasingly rely on a growing number of AI assistants, coding copilots, autonomous AI agents, and browser-based AI services, security teams need visibility into which tools are being used, who is using them, and whether those applications comply with corporate policy,” Gupta wrote.

In addition, FortiEndpoint natively supports data loss prevention (DLP) by automatically inspecting sensitive business data exchanged with AI applications, agents, and web services. Built-in user coaching provides real-time policy guidance to help users understand acceptable AI usage and reduce risky behaviors without impacting productivity, Gupta stated.

This feature helps prevent the leakage of sensitive data such as personally identifiable information, intellectual property, and financial information directly at the endpoint. By integrating DLP into FortiEndpoint, organizations can safely adopt AI while maintaining stronger data security and compliance controls without adding another point product or management layer, according to Fortinet.

Lastly, the vendor has built a FortiAI-Assist agent into FortiEndpoint to simplify administration and accelerate day-to-day operations. The agent can provide contextual insights, policy recommendations, and risk guidance to help customers strengthen governance, prioritize threats, scale threat hunting, and improve efficiency through a unified management experience, according to Fortinet.

These assisted workflows are complemented by adaptive zero-trust capabilities with dynamic risk and compliance scoring.

“By continuously assessing endpoint health, compliance status, and risk posture, FortiEndpoint helps organizations make access decisions based on real-time context, so access to AI applications and protected resources can be adjusted as risk changes,” Fortinet stated. “This helps organizations reduce exposure, enforce more consistent policy, and safely support AI-enabled work.”

“Delivering these capabilities through FortiEndpoint gives customers a practical way to manage AI risk with the same agent and license they already rely on for endpoint security” said Chris DePuy, technology analyst at 650 Group, in a statement.

The FortiEndpoint enhancements are expected in Q3 2026.

Generative AI is a kind of artificial intelligence that creates new content, including text, images, audio, and video, based on patterns it has learned from existing data.

Today’s generative models are typically built on foundation-model architectures such as large-language models (LLMs) and multimodal systems, enabling them to carry on conversations, answer questions, write stories, generate code, and produce images or videos from brief prompts.

Generative AI is different from discriminative AI, which draws distinctions between different kinds of input. Where discriminative AI answers questions like “Is this image of a rabbit or a lion?”, generative AI instead responds to prompts such as “Describe to me how a rabbit and lion look different from one another” or “Draw me a picture of a lion and a rabbit sitting next to each other” — and in both cases produces text or imagery that, while grounded in the AI’s training data, isn’t just a copy of something that already existed.

Just a few years ago, generative AI was once a novelty focused on chatbots and artistic image generation. Today, it has become a core enterprise technology, and powers everything from content creation and software development to customer support and analytics workflows. But with that power comes a new set of challenges — from model alignment and hallucination to governance and data-integration hurdles.

In this article, we’ll look at how generative AI works, explore how it has evolved into the foundation-model era, examine how to implement it effectively, and offer best practices for getting value out of it, today and in the future.

How does generative AI work?

For decades, early artificial-intelligence efforts often focused on rule-based systems or narrowly trained models that were built for one task at a time. While these efforts produced useful systems that could reason and solve human tasks, they were generally a far cry from sci-fi visions of thinking machines. Programs that could talk to people never seemed to get very far past the level of ELIZA, a “computer therapist” created at MIT in the mid 1960s; even Siri and Alexa after much fanfare were revealed to be fairly limited.

The big structural shift that gave birth to modern generative AI came with the concept of a transformer, first introduced in “Attention Is All You Need,” a 2017 paper from Google researchers.

Using a transformer architecture as a basis, you can build a system that derives meaning from analyzing long sequences of input tokens (words, sub-words, bytes) to understand how different tokens might be related to one another, then determines how likely any given token is to come next in a sequence, given the others. In AI lingo, we call these systems models. Because a model analyzes very large datasets and parameter counts, it can pick up on statistical patterns and knowledge implicitly embedded in the data.

This is all easier said than done. The process of adjusting a model’s internal parameters so it gets better at predicting the next token in sequences is called training. During training, the model repeatedly guesses the next token in a given sequence, compares its prediction to the actual one, measures the error, and updates its parameters to reduce that error across billions of examples. Over time, that process teaches the model the statistical relationships that will allow it to generate coherent language (or code, or images) later.

What is a foundation model?

You’ll often hear the word large used for transformer-based models of these types, like the LLMs we mentioned earlier. Large in this context refers to the large number of internal numerical values that the model adjusts during training to represent what it has learned, along with breadth and diversity of data used to train the model and the underlying compute resources powering this whole process.

This is in contrast with the narrow models of the earlier era of AI/ML, which werebuilt for one purpose and trained on a limited dataset. For instance, a spam filter may be very good at what it does, but it’s only trained on email data and all it can do is classify emails. Large models, by contrast, serve as what’s known as foundation models. They’re trained broadly on diverse data (text, code, images, or multimodal data) and then adapted or specialized for many downstream tasks.

These foundation models are the basis for most of the popular generative AI tools and services on the market today. They can be specialized in several ways:

• Fine-tuning: Giving a foundation model further training on a smaller, task-specific dataset
• Retrieval-augmented generation (RAG): Giving the model the ability to pull in external knowledge when asked a question
•  Prompt engineering: Tailoring a query so the model gives the sort of answers you’re looking for.

How do AI systems write computer code?

One of the surprising discoveries of the gen AI era was that in recent years was that foundation models trained on natural-language text can also, when fine-tuned with code examples, also write computer code — often better than many purpose-built systems. Still, it makes sense, when you think about it — after all, high-level computer languages are designed by humans and ultimately based on human language.

This 2023 InfoWorld article highlights how models like PaLM, LLaMA and other transformer-based systems fine-tuned on code repositories propelled this shift, but since AI giants like OpenAI have moved into this space. This all matters because code generation (or code-assisted productivity) has become a key enterprise use case of generative AI — perhaps the key use, given the industry’s enthusiastic adoption of it.

What are AI agents?

So far, we’ve been talking about chatbots, writing assistants, image-generation tools. They respond to prompts, output text or images, and then stop. A new category of tool called agentic AI goes further: it plans, executes, and in many cases learns as it works.

Because large models already understand language, code, and even structured data to some extent, they can be repurposed to generate not only descriptive text but operational instructions. For example: an agent might parse the intent “generate a sales-report”, then format internal calls like getData(salesDB, region=NA, period=lastQuarter), and then call an API, all by generating text that’s interpreted as instructions. The MCP framework standardizes the “language” of those instructions and the plug-points into tools and data so that the model doesn’t need bespoke integrations for each new workflow.

These kinds of autonomous agents have several enterprise use cases:

• Software automation: Agents that generate code, call unit tests, deploy builds, monitor logs and even roll back changes autonomously.
• Customer support: Instead of simply drafting responses, agents interact with CRM APIs, update ticket statuses, escalate issues, and trigger follow-up workflows.
• IT operations/AIOps: Agents monitor infrastructure, identify anomalies, open/close tickets, or auto-remediate based on defined rules and context from logs.
• Security: Agents may detect threats, initiate alerts, isolate compromised systems, or even attempt to manage threat containment — though this raises new risks.

How can you implement generative AI in the enterprise?

We’ve now touched on what generative AI can do. But how can you make it work reliably in your business. The difference between a pilot and full-scale deployment often comes down to systems, structure and governance as much as to models themselves. InfoWorld’s Matt Asay offers a deep dive into enterprise gen AI essentials, but here are some important points to keep in mind:

Choosing between API, open-source or custom fine-tuned models. One of the first major decisions for any enterprise project is: do you use a model via an API (e.g., from a vendor like OpenAI or Anthropic), deploy an open-source model internally, or build/fine-tune a custom model yourself? Each has trade-offs.

APIs offer speed and minimal setup, but may expose data, limit customization or accrue high cost — and will leave you at the mercy of your vendor. Open source allows internal control and may ease fine-tuning, but requires infrastructure, expertise, and support. Custom fine-tuning gives you the tightest alignment to your use-case, but lengthens time to value and increases risk.

Governance, data privacy and compliance. Deploying generative AI in an enterprise setting raises new governance, privacy and regulatory issues. For example: Who owns the data that’s ingested? How is proprietary data protected if you call a third-party API? What traceability exists for model outputs—a huge question for regulated industries? One useful framework is covered in “A GRC framework for securing generative AI” Data governance must adapt for the new era,  and new frameworks are evolving to help.

Human-in-the-loop review. Even the best models make mistakes and cannot simply be put on autopilot. You need a human-in-the-loop (HITL) process: real people need to review outputs, validate for bias, approve high-stakes content, and tune prompts or models based on feedback. Incorporating HITL checkpoints helps mitigate risk and improve overall quality.

Integration with existing systems and RAG pipelines. Retrieval-augmented generation, which we touched on earlier, connects foundation models into business workflows, systems, and enterprise data stores. RAG can bind LLMs to your organization’s internal knowledge bases, thereby reducing hallucinations (which we’ll discuss in a moment) and increasing the relevance of gen AI output.

What causes AI hallucinations?

Probably the biggest limitation of generative AI is what those in the industry call hallucinations, which is a perhaps misleading term for output that is, by the standards of humans who use it, false or incorrect.  

Every generative AI system, no matter how advanced, is built around prediction. Remember, a model doesn’t truly know facts—it looks at a series of tokens, then calculates, based on analysis of its underlying training data, what token is most likely to come next. This is what makes the output fluent and human-like, but if its prediction is wrong, that will be perceived as a hallucination.

Because the model doesn’t distinguish between something that’s known to be true and something likely to follow on from the input text it’s been given, hallucinations are a direct side effect of the statistical process that powers generative AI. And don’t forget that we’re often pushing AI models to come up with answers to questions that we, who also have access to that data, can’t answer ourselves.

In text models, hallucinations might mean inventing quotes, fabricating references, or misrepresenting a technical process. In code or data analysis, it can produce syntactically correct but logically wrong results. Even RAG pipelines, which provide real data context to models, only reduce hallucination—they don’t eliminate it. Enterprises using generative AI need review layers, validation pipelines, and human oversight to prevent these failures from spreading into production systems.

What are some other problems with generative AI?

Generative AI has proven to be such a disruptive technology that’s stoking near-apocalyptic fears that it will result in a superintelligence that will enslave or destroy humanity. Meanwhile, in the present day, increasingly troubling reports of so-called AI psychosis are emerging, where people have mental health episodes triggered by the uncanny and sometimes sycophantic ways chatbots affirm whatever you talk to them about and try to keep the conversation going.

Compared to such existential questions, the following business-related problems may seem petty. But they’re real issues for enterprises considering investing in AI tools.

• Data leakage and regulatory risk. When a model is fine-tuned or prompted with sensitive information, that data may be memorized and unintentionally reproduced. Using third-party APIs without strict controls can expose proprietary or personally identifiable information (PII). Regulatory frameworks like GDPR and HIPAA require explicit governance around where training data resides and how inference results are stored.
• Prompt injection occurs when an attacker manipulates a model’s instructions—embedding hidden directives or malicious payloads in user input or external content the model reads. This can override safety rules, expose internal data, or execute unintended actions in agentic systems. Guardrails that sanitize inputs, restrict tool-calling permissions, and validate outputs are becoming essential.
• Copyright and content ownership. Many foundation models are trained on data scraped from the public internet, creating disputes over copyright and data provenance. Enterprises using generated output commercially need to confirm usage rights and review indemnity terms from vendors.
• Unrealistic productivity expectations. Finally, organizations sometimes expect generative AI to deliver instant productivity gains. The reality, it turns out, is more mixed. Enterprise adoption requires infrastructure, governance, retraining, and cultural change. The models accelerate work once properly integrated, but they don’t automatically replace human judgment or oversight.

The current generation of enterprise AI systems includes several layers of defense against these risks:

• Guardrails that constrain model behavior and filter unsafe outputs.
• Model validation frameworks that measure factual accuracy and consistency before deployment.
• Policy layers that enforce compliance rules, redact sensitive data, and log model actions.

These safeguards reduce—but don’t remove—the inherent uncertainty that defines generative AI.

GenAI: essential for the enterprise

Generative AI has evolved from a novelty into a core layer of enterprise technology. Foundation models and agentic systems now power automation, analytics, and creative workflows — but they remain fundamentally probabilistic tools. Their strength lies in scale and adaptability, not perfect understanding.

For organizations, success depends less on chasing model breakthroughs than on integrating these systems responsibly: building guardrails, maintaining oversight, and aligning them with real business needs. Used wisely, generative AI can amplify human capability rather than replace it.