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For some residents it started with a letter in the mailbox. It was a “friendly introduction from the team behind the Victorian AI hub”.

“I am knocking on doors to explain what we have in mind and, most importantly, to listen,” the letter from Syncline Energy stated.

The post 10 Best Active Directory Management Tools 2026 appeared first on Cyber Security News.

Read more of this story at Slashdot.

• Get our breaking news email, free app or daily news podcast

For some residents it started with a letter in the mailbox. It was a “friendly introduction from the team behind the Victorian AI hub”.

“I am knocking on doors to explain what we have in mind and, most importantly, to listen,” the letter from Syncline Energy stated.

Read more of this story at Slashdot.

Adobe Patches for May 2026

For May, Adobe released 10 bulletins addressing 52 unique CVEs in Adobe Commerce, After Effects, Adobe Connect, Illustrator, Media Encoder, Premiere Pro, Substance 3D Painter, Substance 3D Sampler, Content Authenticity SDK, and the Adobe Substance 3D Designer. Here’s this month’s overview table:

The obvious priority this month is the patch for Commerce, with its 15 bugs and deployment priority of 2. The Connect fix should also rank up there since both of its CVEs are CVSS 9s. Beyond those, it’s a pretty typical month for Adobe, with most of the bugs either being cross-site scripting (XSS) or open-and-own code executions.

Microsoft Patches for May 2026

This month, Microsoft released a whopping 138 new CVEs in Windows and Windows components, Office and Office Components, Microsoft Edge (Chromium-based), Azure, .NET and Visual Studio, Copilot Chat, Github Copilot, M365 Copilot, SQL Server, TCP/IP, and the Telnet Client – yes, the Telnet client. Two of these bugs were reported through the TrendAI ZDI program. 30 of these bugs are rated Critical, three are rated as Moderate, one is rated Low, and the rest are rated Important in severity.

This large volume of fixes follows the largest monthly release in Microsoft’s history and reflects the trend across the industry of a high number of submissions. While not all of these bugs were found by AI, it’s likely they had an AI-related component – even if it was just AI writing the submission. I should also point out the Pwn2Own Berlin occurs in just a few days, and it’s typical for vendors to patch as much as they can before the event.

None of the bugs patched by Microsoft this month are listed as publicly known or under active attack at the time of release, so we’ve got that going for us. Let’s take a closer look at some of the more interesting updates for this month, starting with a nasty-looking bug in DNS:

-    CVE-2026-41096 - Windows DNS Client Remote Code Execution Vulnerability
This patch fixes a heap-based buffer overflow in the DNS Client triggered by a malicious DNS response. No authentication or user interaction needed, and since the DNS Client runs on virtually every Windows machine, the attack surface is enormous. An attacker with a position to influence DNS responses (MitM, rogue server) could achieve unauthenticated RCE across your enterprise.

-    CVE-2026-41089 - Windows Netlogon Remote Code Execution Vulnerability
This update covers another CVSS 9.8 bug, which is a stack-based buffer overflow that lets an unauthenticated remote attacker execute code on a domain controller by sending a specially crafted network request — no credentials, no user interaction required. Yup – that makes it wormable. This is the highest-impact bug that requires immediate patching: a compromised domain controller is a compromised domain.

-    CVE-2026-42898 - Microsoft Dynamics 365 On-Premises Remote Code Execution Vulnerability
This bug rates a CVSS 9.9(!) and represents a code injection in Dynamics 365. It allows any authenticated user to execute code with a scope change, meaning exploitation can break out and affect resources beyond the vulnerable component itself. Scope changes are pretty rare, so if you’re running Dynamics 365 On-Prem, definitely test and deploy this patch quickly.

-    CVE-2026-40415 - Windows TCP/IP Remote Code Execution Vulnerability
This bug in the TCP/IP stack results from a use-after-free (UAF) and could allow a remote, unauthenticated threat actor to execute code without user interaction. That makes this another wormable bug. However, this one is much less likely to be exploited. The target needs to be under sustained low-memory (memory pressure) conditions, which is pretty rare. Still, no need to tempt fate here. Test and deploy this one quickly.

Here’s the full list of CVEs released by Microsoft for May 2026:

* Indicates this CVE had been released by a third party and is now being included in Microsoft releases.

† Indicates further administrative actions are required to fully address the vulnerability.

Looking at the other Critical-rated bugs in this month’s release, there are quite a few scary-looking bugs (including a CVSS 10!), but there’s no action for the end user as Microsoft has already mitigated these bugs and is just now documenting them. There’s also this month’s crop of Office bugs where the Preview Pane is an attack vector. However, the bug in Office for Android does not have the Preview Pane vector; it’s simple open and own. The bug in the WiFi driver needs a network adjacent attacker. The SharePoint bug requires authentication, but anyone with site privileges has the authentication needed. The bug in SSO Plugin for Jira & Confluence should really be called an authentication bypass, since it allows an unauthenticated attacker to gain access to a system.

Looking at the other code execution bugs, most are of the open and own variety as expected. The bug in Dynamic 365 (On Prem) requires high privileges. The Message Queueing bug requires an adjacent attacker. The bug in SQL Server requires authentication, but as usual, patching won’t be straightforward. Finally, there’s a bug in the kernel that leads to code execution. Most kernel bugs are privilege escalations, but this one could allow code execution if an attacker sends specially crafted NVMe over Fabrics (NVMe‑oF) response messages during the connection handshake process that contains an invalid header length value. Neat.

As usual, the vast majority of the Microsoft release fixes Elevation of Privilege (EoP) bugs. Also as usual, most simply lead to local attackers executing their code at SYSTEM-level privileges or administrative privileges, so there’s not much to add without further technical details about the bugs themselves. There are also a few bugs that just state the attacker could “gain ELEVATED privileges.” How obtuse. The bugs in Azure allow an attacker to access data otherwise hidden from them. The Edge bug allows threat actors to elevate to the privileges of the running application. The bug in Visual Studio allows attackers to get permissions associated with the MCP Server’s managed identity. Finally, there are a couple of sandbox escapes, too, which are always useful.

This month's update includes six Security Feature Bypass vulnerabilities. The most severe is in the Azure SDK for Java (CVSS 9.1). An attacker over the network can bypass the integrity protection provided by authentication tags on encrypted data, effectively manipulating encrypted input in a way that slips past integrity checks during decryption. Close behind is the bypass affecting the GitHub Copilot integration in Visual Studio Code (CWE-74). This one requires a user interaction, but it allows an attacker to circumvent the path validation safeguards that normally control which files Copilot is permitted to modify. The other Visual Studio Code bypass involves cross-site scripting, improper link resolution, and information exposure triggered when a user opens or views a maliciously crafted notebook. On the Windows networking side there are two bypasses. The first hits the Windows TCP/IP driver via an authentication bypass using an alternate channel. The other impacts the Windows Filtering Platform through improper access control, allowing a local, low-privileged attacker to bypass FQDN-based network security rules. Finally, there’s a Secure Boot bypass that, you guessed it, bypasses secure boot features.

Moving on to the Information Disclosure bugs fixed this month, we have 15 different CVEs. As usual, the majority of these simply result in info leaks consisting of unspecified memory contents or memory addresses. The bug in Power Automate could expose data marked “Sensitive” within Power Automate Desktop flows. One of the Word bugs could disclose NLTM hashes. The bug in Edge could disclose your cookies, which seems rude. The bug in Visual Studio could expose file path information. Finally, there’s a bug in Telnet for Windows 11 that leaks information being used by Telnet at the time. I didn’t even realize Windows 11 still had a telnet client.

The May release contains 10 spoofing bugs (plus the ones already addressed by Microsoft). The bug in Azure Machine Learning Notebooks vulnerability requires user interaction, but it could expose info through the Azure ML web interface to the attacker. There’s a cluster of fixes for Microsoft's mobile Office suite on Android. Excel, Word, and PowerPoint for Android all carry spoofing flaws rooted in improper access control. Two Copilot products are also affected by spoofing vulns. The M365 Copilot for Desktop has no details provided. The M365 Copilot for Android variant requires low privileges and producing only limited impact on confidentiality and integrity. Microsoft Teams for Android rounds out the mobile app spoofing bugs. Three Edge bugs close things out, all involving misrepresentation of information in the browser UI.

There are two Tampering bugs in this month’s release. The one in .NET Core allows threat actors to write files to an affected system. The other is in Outlook for iOS and manifests as a command injection bug.

There are eight DoS bugs in the May release, but as always, Microsoft provides little to no actionable information about the vulnerabilities. The most interesting from a practical standpoint are two TCP/IP bugs that allow a low-privilege Hyper-V guest to crash the host. Both are triggered from the adjacent network. On the broader network-exposure side, the ASP.NET Core bug is a straightforward infinite loop condition — an unauthenticated attacker sends a crafted request over the network and the server stops responding.

No new advisories are being released this month.

Looking Ahead

Assuming I survive Pwn2Own Berlin (which is looking iffy at the moment), I’ll return on June 9th on what will hopefully be a smaller release than this one. Until then, stay safe, happy patching, and may all your reboots be smooth and clean!

Adobe Patches for March 2026

For March, Adobe released eight bulletins addressing 80 unique CVEs in Adobe Acrobat Reader, Commerce, Illustrator, Substance 3D Painter, Premier Pro, Experience Manager, Substance 3D Stager, and the Adobe DNG Software Development Kit (SDK). Two of these bugs were submitted through the TrendAI ZDI program. If you need to prioritize, the update for Acrobat likely has the most impact, with the patch fixing two Critical-rated and one Important bugs. The fix for Experience Manager is the largest this month with 33 CVEs addressed. However, these are simple cross-site scripting (XSS) bugs, so it’s not too exciting. The fix for Commerce is also quite large with 19 CVEs. Most of these are also XSS bugs, but there’s a few security feature bypass bugs in there, too. Adobe actually gives this patch a deployment priority of 2, but it’s not under active attack at the time of release.

The fix for Illustrator corrects seven bugs, including a few Critical-rated ones. The patch for Substance 3D Painter fixes nine different CVEs, all rated Important. That’s not the case for Substance 3D Stager, which fixes six different Critical bugs that could lead to arbitrary code execution. The patch for the Adobe DNG Software Development Kit (SDK) addresses one Critical and one Important bug. Finally, the update for Premiere Pro correct a single, Critical-rated bug that could lead to arbitrary code execution.

None of the bugs fixed by Adobe this month are listed as publicly known or under active attack at the time of release, and beyond the update for Commerce, all of the other updates released by Adobe this month are listed as deployment priority 3.

Microsoft Patches for March 2026

This month, Microsoft released 84 new CVEs in Windows and Windows components, Office and Office Components, Microsoft Edge (Chromium-based), Azure, SQL Server, Hyper-V Server, and the Windows Resilient File System (ReFS). Counting the third-party and Chromium updates listed in the release, it brings to total number of CVEs to 94. Five of these bugs were reported through the TrendAI ZDI program. Eight of these bugs are rated Critical, and the rest are rated Important in severity.

This volume is relatively typical for a March release, and the lack of bugs under active attack is a nice change from last month. There are two vulnerabilities listed as publicly known at the time of release, but none listed as actively exploited.

Let’s take a closer look at some of the more interesting updates for this month, starting with a bug with an AI slant:

-    CVE-2026-26144 - Microsoft Excel Information Disclosure Vulnerability
This is a fascinating bug and an attack scenario we’re likely to see more often. The vulnerability is a simple cross-site scripting (XSS) bug in Excel, but an attacker could use it to cause the Copilot Agent to exfiltrate data off the target. This essentially makes it a zero-click information disclosure. Although not stated, the disclosure is likely at the level of the logged-on user, so there isn’t a privilege escalation component. Info disclosures rarely get rated Critical, but it makes sense here.

-    CVE-2026-26110/CVE-2026-26113 - Microsoft Office Remote Code Execution Vulnerability
Another month and another pair of Office bugs where the Preview Pane is an exploit vector. I’ve lost count of how many of these bugs have been patched over the last year, but it’s just a matter of time until they start appearing in active exploits. The latest versions of Outlook allow you to hide the Preview Pane, but it isn’t clear if this would mitigate these attacks. The best option is still to test and deploy the update, but considering how many of these patches exist, it’s likely further updates will be needed to fully address these issues.

-    CVE-2026-23669 - Windows Print Spooler Remote Code Execution Vulnerability
Just reading the title makes me twitch with remembrances of Print Nightmare from a few years ago. This bug works in the same manner as those exploits. An authenticated attacker sends specially crafted messages to an affected system to gain arbitrary code execution. No user interaction is required. Let’s hope we don’t end up in a new nightmare of spooler exploits. Test and deploy this one quickly.

-    CVE-2026-23668 - Windows Graphics Component Elevation of Privilege Vulnerability
This vulnerability was submitted to the ZDI program by Marcin Wiązowski as two separate bugs, and it demonstrates the need for variant investigations when creating security patches. Both cases are caused by the lack of proper locking when performing operations on an object. However, in one case, it’s in the cdd.dll driver while the other is in the win32kfull driver. Either way, an attacker could use these to elevate privileges to SYSTEM and execute arbitrary code. Since the fix for both is to add object locking to the GDI object, the cases are combined into a single CVE. That’s not a problem, but it does show how variants can occur, and fixes should be as broad as possible.

Here’s the full list of CVEs released by Microsoft for March 2026:

* Indicates this CVE had been released by a third party and is now being included in Microsoft releases.

† Indicates further administrative actions are required to fully address the vulnerability.

Looking at the other Critical-rated bugs in this month’s release, they are all cloud-native and require no user action. Microsoft has already remediated the vulnerabilities.

Moving on to the other code execution bugs, the vulnerabilities in SharePoint Server pop out first. Both require authentication, but it’s essentially the lowest level of authentication, so these would be ideal cases for lateral movement within an enterprise. There are the standard open-and-own cases within Office components. There an interesting sounding bug in the Windows Mobile Broadband Driver that requires physical access, but Microsoft doesn’t elaborate on the attack scenario beyond that fact. The bug in the System Image Manager Assessment and Deployment Kit (ADK) requires authentication. The bug in GDI requires user interaction. The remaining code execution bugs are in the RRAS protocol. We’ve seen bugs in this component in the past, but never in the wild. I wouldn’t ignore these, but I wouldn’t rush them out either.

Similar to last month, updates for Elevation of Privilege (EoP) bugs make up nearly half of this month’s release. And as we saw last month, but most simply lead to local attackers executing their code at SYSTEM-level privileges or administrative privileges. The bugs in SQL Server allow attackers to elevate to SQL sysadmin privileges. The bug in the Azure MCP Server is more complex. It allows attackers to obtain the permissions associated with the MCP Server’s managed identity, which lets them perform actions that the managed identity is able to reach. The bug in the Azure AD SSH Login extension for Linux leads to root access, and it won’t be easy to patch. You’ll need to run the update instructions from the command line on each affected system. That’s the same case for the bug in the Linux Azure Diagnostic extension (LAD). There’s an odd bug in the Hybrid Worker Extension (Arc‑enabled Windows VMs) that leads to “ELEVATED” privileges, which is something I’ve never seen before. The bug in the Broadcast DVR component allows an attacker to go from low integrity level up to medium. There’s a bug listed as an EoP in the Push message Routing Service, but reading the description, Microsoft notes it could lead to an information disclosure. It’s likely this is an error and should be an Information Disclosure bug. The final EoP is in the Azure Portal Windows Admin Center and leads to SYSTEM. However, there’s no patch to remediate this bug. Instead, you need to install the latest version of the Windows Admin Center extension through the Azure Portal by hand.

There are two security feature bypass patches in the March release. The first is a bypass of the MapURLToZone method, which (as expected) allows attackers to bypass MapURLToZone protections. The third bypass is in Kerberos and could allow an attacker to either view some sensitive information or make changes to “disclosed” information. This is a race condition that occurs while the group policy is being reapplied, so the window to exploit this would be extremely small.

Looking at the remaining info disclosure bugs getting patched this month, only two result in info leaks consisting of unspecified memory contents or memory addresses. Ther others provide more interesting results. There are three bugs in the Azure IoT Explorer have some wide-ranging implications. According to Microsoft, exploitation could result in, “device connection information, authentication tokens, request data, file paths, and other information transmitted between the application and the IoT Hub.” The bug in Authenticator almost reads like a security feature bypass, as exploit results in the disclosure of a one‑time sign‑in code or authentication deep link. The attacker would receive the sign‑in information and could potentially use it to authenticate as the user, allowing access to information or services available to that account. The last info disclosure bug is in the Accessibility Infrastructure and allows an attacker to gain secrets or privileged information belonging to the user of the affected application.

There are only four spoofing bugs in the March release. The first is in SharePoint server and manifests as an XSS. The second bug is a Server-Side Request Forgery (SSRF) in the Azure IoT Explorer. The remaining two are a bit more cryptic. The bug in Windows Shell Link Processing results from the “exposure of sensitive information to an unauthorized actor,” and could lead to spoofing. That sounds like credential exposure, but it’s not explicitly called out. The final spoofing bug results from the insufficient verification of data authenticity in Windows App Installer. Again, this sounds vaguely like credential reflection, but without further information, we can only speculate.

Finally, there are four denial-of-service (DoS) bugs in the release, including one that’s listed as publicly known in the .NET Framework. As usual, Microsoft provides no actionable information about these bugs.

No new advisories are being released this month.

Looking Ahead

I plan on being at RSA for the first time in my career, so if you’re around, please stop by and say hello. I like it when people say hello. Otherwise, I’ll be back on April 14 with my assessment of that patch Tuesday release. Until then, stay safe, happy patching, and may all your reboots be smooth and clean!

The post Telegram Trading Bot Banana Gun Goes Live on Stable Chain appeared first on SecureBlitz Cybersecurity.

Maximize app performance and ROI with the R8 Configuration Analyzer

A premium experience is only as good as its foundation, and a performant foundation is what allows your app to scale across the Android ecosystem. This is especially true with the release of Android 17, which introduces conservative, device RAM-based app memory limits to target extreme memory leaks and outliers before they cause system-wide instability. To stay below these new system thresholds and prevent your app from being terminated, having a lean footprint is no longer optional: it’s a critical requirement.

This year, we’re making it easier to build highly optimized, fast apps by introducing the R8 Configuration Analyzer in Android Studio. R8 is your most powerful tool for improving app performance, but its effectiveness is often limited by overly broad "keep rules" that prevent the compiler from stripping away unused code. The new Configuration Analyzer provides optimization, obfuscation, and shrinking scores, allowing you to identify specific rules that are preventing the benefits of R8 optimization.

By optimizing their R8 configurations, developers at Monzo achieved a 30% improvement in cold starts and a 35% reduction in ANRs. Smaller, faster code isn't just about efficiency; it's about ensuring your app has the memory headroom to deliver delight on every form factor, from the phone to the car.

Extend your reach with a unified approach to Widgets on Phones, Watches and Cars

User interaction is shifting toward quick, glanceable moments—short bursts of information that keep users connected without needing to open the full app. To help you increase the reach of your app content, we are unifying the development experience across the Android ecosystem with Jetpack Glance. By using a consistent, Compose-based model, you can elevate the content most important to your users straight to the phone’s home screen, Wear Widgets (previously Tiles!), and cars with a familiar workflow.

In order to help users engage with your content and features, even outside your app, we are making widgets more expressive and adaptive with RemoteCompose. On Wear OS, RemoteCompose allows you to use the Compose tools you’re already comfortable with to define UI logic that renders natively on remote surfaces, ensuring that your glanceable experiences remain highly performant and responsive even on resource-constrained hardware. On mobile and cars, RemoteCompose is used as a new framework giving Widgets new expressive capabilities.

You can use Jetpack Glance (together with RemoteCompose on Wear) to deliver a cohesive user journey. Whether it’s viewing flight status on the car dashboard, checking a gate change on a watch, or managing a boarding pass from a phone widget, this shared approach maximizes your app’s presence while keeping your development effort focused and efficient.

For more details, check out the premium Android experience YouTube playlist.

Posted by Alice Yuan, Developer Relations Engineer at Google, Arti Arutiunov, Product Manager at Datadog and Nikita Ogorodnikov, Staff Software Engineer at Datadog

Performance regressions are notoriously hard to reproduce, making regressions a massive bottleneck for mobile developers. Although signals like ANR rates indicate what issues occur in production, pinpointing the specific line of code that resulted in the performance issue has historically necessitated exhaustive manual reproduction or speculative trial-and-error experimentation.

Datadog collaborated with Google to mitigate this frustration by integrating the ProfilingManager API (available on Android 15+ devices) into its Real User Monitoring (RUM) and Continuous Profiling platforms. This integration transforms the debugging workflow, allowing developers to move beyond surface-level symptoms to being able to detect the why behind a performance bottleneck.

The impact of ProfilingManager

ProfilingManager is a system service introduced in Android 15 that enables apps to programmatically collect performance data such as call stack samples, field traces and memory heap dumps directly from production environments. This capability shifts the engineering paradigm from reactive manual reproduction to proactive field analysis.

Solving the Android code-level visibility challenge

Prior to the implementation of ProfilingManager, Datadog’s Real User Monitoring (RUM) focused on high-level application health and session-level telemetry to assess the user journey. Engineering teams could monitor Android performance signals like time to initial display, ANR rates, CPU load, and frozen frames. These insights extended to granular interactions, such as network latency, touch events, and main thread hangs. However, while this data effectively highlighted which performance bottlenecks were surfacing in the field, it provided no clear path to identifying the root cause of these failures.

To address this, Datadog needed a profiling engine capable of capturing Android traces directly from devices in production with minimal performance impact. After evaluating alternative approaches, such as writing their own trace processor using Android Debug APIs, the team selected ProfilingManager because it is the most performant solution of the profiling options they evaluated and offloads the sampling decisions overhead to the OS.

ProfilingManager supports a wide range of collection methods, including CPU traces, call stack sampling, memory analysis through Java heap dumps and native heap profiles. It enables developers to profile production builds, upload trace files to external storage, and review them in the Perfetto trace analyzer UI. As a SaaS provider, Datadog uploads, visualizes, and analyzes these profiles collected via its SDK, providing a unified view of application health.

• Granular session diagnostics: ProfilingManager enhances debuggability by delivering direct OS-level trace data, overcoming the visibility and alignment challenges typical of custom logging with system services. To dive deeper, developers can download these traces from Datadog to investigate further in visualization tools like the Perfetto UI.
• Automated telemetry triggers: By leveraging native system events to initiate trace recordings at key optimization points, Datadog reduces the need to build custom collection logic. While the initial rollout focuses on the APP_FULLY_DRAWN signal, there are already plans to expand this observability to include ANR, OOM, and COLD_START triggers.
• Proactive trace snapshots: By interfacing directly with the system-level Perfetto service (traced), ProfilingManager utilizes a proactive background recording model designed to capture unpredictable issues. This ensures that developers receive a precise visualization of the events leading up to a performance anomaly, offering a level of insight that exceeds what is possible through manual instrumentation.
• Bottleneck detection at scale: Datadog is able to synthesize telemetry from across Datadog’s global customer base to uncover regressions that only emerge under unique hardware configurations and variable network environments.
• System-enforced resource stability: The API leverages sampling trace collection to ensure performance and user experience impacts remain unnoticeable.
• On-device data controls: ProfilingManager filters out irrelevant information from other processes on-device before the profile is delivered to the app. This minimizes file sizes and ensures that only data relevant to the app's processes is provided.

Processing millions of weekly profiles to optimize real-world apps

Conclusion

By integrating Android’s ProfilingManager API, Datadog successfully closed the visibility gap between backend systems and mobile client applications for their customers. By processing millions of profiles weekly with negligible device overhead, Datadog equips Android developers with the code-level insights necessary to diagnose complex performance bugs instantly, helping developers build smoother applications and improve their app’s performance signals in the Play Store. To adopt the ProfilingManager API directly into your performance observability framework, check out our documentation.

In the future, Datadog aims to make Android profiling data a first-class input for coding agents to autonomously resolve performance bottlenecks, closing the feedback loop between detection and remediation. Datadog is working toward making Android profiling broadly accessible to developers.

To get started using the Datadog real user monitoring feature powered by ProfilingManager, visit Datadog Mobile Real User Monitoring.

Today we're releasing Android 17 and making it available on most supported Pixel devices. Look for new devices running Android 17 in the coming months.

Android 17 marks the start of our transition to an intelligence system, putting your apps at the center. It's shifting to an adaptive-first development standard by introducing mandatory large-screen resizability, all while delivering next-generation privacy, security, media, camera, and performance. We'll cover all that in this post, as well as how we're bringing together next generation tools, libraries, and agent skills to help your apps embrace the opportunity.

Throughout the past year, from our Canary channel to our Beta releases, we’ve collaborated with you in the developer community to build a platform you and your users can trust. To that end, this moment marks the availability of the source code at the Android Open Source Project (AOSP). This allows you to examine the source code for a deeper understanding of how Android works.

Let's dive deeper into Android 17.

An intelligence system

With deep integration between hardware, software and AI, we’re transforming Android from an operating system to an intelligence system. It's about delivering new helpful experiences that anticipate user needs, and it brings more opportunities for engagement with your apps. To that end, Android 17 expands the capabilities of AppFunctions, a platform API with a corresponding Jetpack library. It allows you to contribute your app's unique capabilities as orchestratable "tools" for Android MCP, the on-device equivalent of the Model Context Protocol. AI agents and assistants (like Google Gemini) can discover and execute AppFunctions to perform workflows on behalf of the user with direct access to the app's local state.

The Jetpack library, currently in alpha, makes adding AppFunctions as easy as annotating a class and adding KDoc comments.

/**
 * A note app's [AppFunction]s.
 */
class NoteFunctions(
    private val noteRepository: NoteRepository
) {
    /**
     * Adds a new note to the app.
     *
     * @param appFunctionContext The execution context.
     * @param title The title of the note.
     * @param content The note's content.
     */
    @AppFunction(isDescribedByKDoc = true)
    suspend fun createNote(
        appFunctionContext: AppFunctionContext,
        title: String,
        content: String
    ): Note {
        return noteRepository.createNote(title, content)
    }
}

We’ve also launched an AppFunctions agent skill that analyzes your app’s key workflows, automatically generates the required Kotlin code, optimizes your KDocs for LLM tool-calling, and provides ADB commands for testing and debugging.

The Gemini integration is currently in a private preview with trusted testers, but you can begin preparing your apps now. In addition to ADB commands to execute your AppFunctions, we've provided a test agent app that includes an interface to discover and execute your app functions and simulate an AI agent integration. Join our integration early access program at goo.gle/eap-af for a chance to be among the first apps to deploy AppFunctions to production.

Adaptive-first

Your users no longer rely on a single form factor; they transition between phones, foldables, tablets, laptops, automotive displays, and immersive XR environments. Now, with over 580 million large screen devices in the hands of users and the forthcoming launch of Googlebooks, the next generation of ChromeOS built on the Android stack, adaptive is no longer just a technical goal. It’s a massive opportunity to reach highly engaged users, which is one of the reasons we're shifting to an adaptive-first development standard.

No resizability/orientation restrictions on large screens

To ensure apps deliver a premium experience across all form factors, including mobile devices running in desktop mode on connected displays, Android 17 (API level 37) removes the developer opt-out for orientation and resizability restrictions on large screen devices (sw > 600 dp) for apps targeting API level 37. The system will ignore legacy manifest attributes and runtime APIs, including screenOrientation, setRequestedOrientation(), resizeableActivity=false, and aspect ratio constraints (minAspectRatio/maxAspectRatio). Games (based on app category in Google Play) remain exempt. Your app must be ready to adapt to any window size, respect the user's preferred device posture, and support free-form windowing natively.

Next-gen multitasking: App Bubbles, Bubble Bar, and desktop interactive PiP

Android 17 introduces powerful new windowing capabilities that redefine how users multitask, demanding even greater layout flexibility from your apps:

• App Bubbles: Moving beyond the messaging bubbles API, users can now transform any app into a floating bubble by long-pressing its icon on the launcher. This feature is available across phones, foldables, and tablets, enabling lightweight multitasking for any workflow.
• The Bubble Bar: On large screens (tablets and foldables), the system taskbar now includes a dedicated Bubble Bar to organize, transition between, and dock these floating app bubbles.
• Desktop interactive PiP: In desktop environments, Android 17 introduces interactive Picture-in-Picture (PiP). Unlike traditional PiP windows which are read-only, these pinned windows remain fully interactive while staying always-on-top of other application windows.

App Bubbles and Bubble Bar in action

Activity recreation updates

To prevent disruptive state loss and stutter, Android 17 updates the default behavior for Activity recreation. The system will no longer restart activities by default for typical configuration changes that do not require a full UI redraw (including CONFIG_KEYBOARD, CONFIG_KEYBOARD_HIDDEN, CONFIG_NAVIGATION, CONFIG_TOUCHSCREEN, and CONFIG_COLOR_MODE).
Instead, running activities will receive these updates via onConfigurationChanged(), enabling smooth transitions. If your application explicitly relies on a full restart to reload resources for these changes, you must now explicitly opt-in using the new android:recreateOnConfigChanges manifest attribute.

Continue On

Android 17 adds Continue On to help users seamlessly transition a task between Android devices. The user sees a suggestion for the most recently opened app from their mobile device in their tablet taskbar, providing a one-tap affordance to launch the app and deep-link where they left off. Continue on can support app-to-web transitions, including falling back to using the web if the app isn't installed.

Handoff Suggestion on a Tablet

class MyHandoffActivity : Activity() {

    ...

  override fun onCreate(savedInstanceState: Bundle?) {
    super.onCreate(savedInstanceState)
    // Do stuff
    ...
    // Enable handoff
    setHandoffEnabled(true, null)
  }

  // Override and implement onHandoffActivityDataRequested
  override fun onHandoffActivityDataRequested(handoffRequestInfo: HandoffActivityDataRequestInfo) : HandoffActivityData {
    // Create and return handoff data
  }
}

Go adaptive-first with Jetpack Compose

To help you adapt your apps to meet the new Android 17 requirements, we've launched the Jetpack Compose adaptive skill. This AI-powered developer workflow helps you implement the best adaptive practices:

• Adaptive navigation: Automatically transition between bottom navigation bars on mobile and edge-anchored navigation rails on large screens using NavigationSuiteScaffold from the Material 3 Adaptive library.
• Multi-pane layouts: Implement list-detail and supporting pane layouts natively using Navigation 3 Scenes (ListDetailSceneStrategy and SupportingPaneSceneStrategy) instead of fragile fragment transactions.
• FlexBox & Grid APIs: Utilize Compose 1.11's dynamic layout components to easily adjust row and column spans on the fly, ensuring your content always fills the space beautifully.
• Advanced non-touch input: Leverage Compose 1.11's enhanced trackpad and mouse support, including native focus rings and new APIs (like TrackpadInjectionScope and performTrackpadInput) to easily test and deliver a true "laptop-class" experience on Googlebooks and Desktop Mode.
• Dynamic window states: Leverage Compose's reactive state model to seamlessly adapt your UI when the app transitions from full screen to a floating App Bubble or an interactive Desktop PiP window, ensuring a premium experience even at minimal dimensions.

Android is Compose-first

Compose offers the easiest way to build adaptive apps, and that's just one of the many reasons we believe that all Android UI should be built with Compose. To that end, Android development is now Compose-first. All new Android APIs, libraries, tools, and developer guidance will be built exclusively for Jetpack Compose. Legacy View components (in the android.widget package) and View-based Jetpack libraries (like Fragments, RecyclerView, and ViewPager) are now in maintenance mode. They will receive only critical bug fixes, and no new features.

TIP
Ready to migrate? Use our AI-driven XML to Compose Migration Skill to automatically analyze your legacy View layouts and convert them into highly-adaptive Compose code.

Performance & efficiency

App performance means a smooth user interface, fast app start times, and efficient multitasking; Android 17 has impactful improvements in all of these areas.

App memory limits

Memory usage is one of the silent foundations of overall performance. When a foreground app or service grows unchecked, memory management spikes CPU and battery utilization and eventually leads to the termination of other well-behaved cached apps and background jobs, ultimately forcing slower cold starts and impaired multitasking. 

Starting in Android 17, the system will enforce strict app memory limits based on a device's total RAM, abruptly terminating offending processes. New things to help you navigate these tighter requirements:

• R8 Optimizer: The R8 optimizer significantly reduces your app's bytecode memory footprint by shrinking classes, methods, and fields into shorter names, and stripping out unused code and resources. Use R8 in full mode along with the new R8 configuration analyzer to make sure your app is getting the most from R8.
  

• LeakCanary in Android Studio Panda: The profiler now features native LeakCanary integration as a dedicated task, fully integrated with your IDE and source code.
• ApplicationExitInfo: If your app is terminated by these limits, getDescription() from ApplicationExitInfo will return "MemoryLimiter:AnonSwap".
• On-Device Anomaly Detection: Part of ProfilingManager, you can leverage trigger-based profiling using TRIGGER_TYPE_ANOMALY to automatically capture heap dumps when the memory limit is reached.

val profilingManager = applicationContext
   .getSystemService(ProfilingManager::class.java)

val triggers = ArrayList<ProfilingTrigger>().apply {
  add(ProfilingTrigger.Builder(
    ProfilingTrigger.TRIGGER_TYPE_ANOMALY).build())
}
profilingManager.addProfilingTriggers(triggers)

And, we're working to surface more in-field memory metrics to you within Google Play Console.

Generational garbage collection

Android 17 introduces more frequent, less resource-intensive young-generation collections to ART's Concurrent Mark-Compact garbage collector (GC). By separating short-lived objects from stable, long-lived ones, the system runs frequent, lightweight "young-generation" sweeps rather than expensive full-heap scans, drastically reducing CPU usage, power drain, and UI stutter. Our testing has shown significant improvements in GC interference with application threads and a reduction in the maximum memory resident set size (RSS). ART improvements are also available to over a billion devices running Android 12 (API level 31) and higher through Google Play System updates.

Lock-Free MessageQueue

For apps targeting SDK 37 or higher, the core android.os.MessageQueue now implements a lock-free architecture, significantly reducing missed frames, improving app startup time, and radically improving the performance of busy queues in multithreaded scenarios. Note: This can break apps that use reflection on private MessageQueue fields and methods.  The peekWhen and poll APIs have been added to TestLooperManager for instrumentation testing without relying on MessageQueue internals.

Static final fields now truly final

Starting from Android 17, apps targeting SDK 37 or higher won’t be able to modify “static final” fields, allowing the runtime to apply performance optimizations more aggressively. An attempt to do so via reflection (or deep reflection) will lead to an IllegalAccessException being thrown. Modifying them via JNI’s SetStatic<Type>Field methods family will immediately crash the application.

Custom notification view restrictions

To reduce memory usage we are further restricting the size of custom notification views. This update closes a loophole that allows apps to bypass existing limits using URIs. This behavior is gated by the target SDK version and takes effect for apps targeting API 37 and higher.

Privacy & Security

Maintaining user trust is at the heart of the Android ecosystem. Android 17 introduces robust features that protect sensitive data while simplifying user experiences.

Privacy-preserving choices

Historically, apps required broad, permanent permissions to access information like contacts, precise location and media files. Android 17 continues the shift toward privacy-preserving choices that grant temporary, session-based access only to the data the user explicitly selects:

• System-Level Contact Picker: Utilizing ACTION_PICK_CONTACTS, apps can request temporary access only to specific fields (e.g., email or phone number) chosen by the user, eliminating the need for the broad READ_CONTACTS permission. It also fully supports work/personal profile separation.
• Customizable Photo Picker aspect ratio: UsingPhotoPickerUiCustomizationParams, you can customize the system photo picker to show thumbnails in portrait mode. This is perfect for apps that always display photos and videos in portrait such as video based social media apps.
• System-rendered Location Button: A new system-rendered location button that you can embed in your app grants precise location access for the current session only.
• EyeDropper API: A new system-level API, ACTION_OPEN_EYE_DROPPER, allows your app to create a system-powered eyedropper enabling the user to select color from any pixel on the display. This provides a secure, privacy-preserving color-picking experience that eliminates the need for broad, sensitive screen capture or media projection permissions.

val eyeDropperLauncher = registerForActivityResult(ActivityResultContracts.StartActivityForResult()) { result ->
   if (result.resultCode == Activity.RESULT_OK) {
       val color = result.data?.getIntExtra(Intent.EXTRA_COLOR, Color.BLACK)
       // Use the picked color in your app
   }
}
fun launchColorPicker() {
   val intent = Intent(Intent.ACTION_OPEN_EYE_DROPPER)
   eyeDropperLauncher.launch(intent)
}

Picking a color from anywhere on the screen with the system EyeDropper

Local network access

Apps targeting Android 17 now either require the ACCESS_LOCAL_NETWORK runtime permission or the use of system-mediated, privacy-preserving device pickers for local network communication, such as talking to smart home devices or casting receivers. Because ACCESS_LOCAL_NETWORK falls under the existing NEARBY_DEVICES permission group, users who have already granted other NEARBY_DEVICES permissions will not be prompted again.

SMS OTP protection

Android 17 expands SMS one-time-password (OTP) protection by delaying access to SMS messages for three hours:

• WebOTP Format: Delayed for all apps that are not the intended recipient (domain mismatch).
• Standard SMS OTP: Delayed for all apps targeting SDK 37+.
• Exemptions: Default SMS, assistant, and connected companion apps are exempt. Apps are strongly encouraged to migrate to the SMS Retriever or SMS User Consent APIs.

Post-Quantum Cryptography (PQC)

Android 17 is ready for the next generation of cryptographic security:

• Keystore Integration: Supported devices can generate ML-DSA (Module-Lattice-Based Digital Signature Algorithm) keys in secure hardware to produce quantum-safe signatures, exposed via standard JCA APIs.
• Hybrid APK Signing: Introducing the v3.2 APK Signature Scheme, which combines classical signatures with ML-DSA signatures to secure app delivery.

Safer native dynamic code loading 

Smarter password protection for physical inputs

With Android 17, we're making it safer to enter passwords, PINs, and other secrets when using a physical keyboard by no longer showing the last typed character by default.

Users can still easily customize these display settings to match their preferences (availability may vary by device manufacturer).

These enhanced privacy protections are automatically supported byAndroid's built-in SDK components and will be supported in Compose 1.12 for SecureTextFields.

Media and camera features that empower creators and delight users

Android 17 introduces new creator features that give access to pro-quality cameras and media, all while improving the experience for consumers.

• Eclipsa Video: HDR video standard built upon the SMPTE ST 2094-50 specification that introduces new metadata to help devices adapt content for their display headroom and ambient light conditions, as well as improve the simultaneous display of standard and HDR content.
• RAW14 image format: New support for the RAW14 image format provides a way for your professional camera app to capture the highest level of detail and color depth from compatible camera sensors.
• Vendor-defined camera extensions: Vendor-defined extensions enable hardware partners to define and implement custom camera extension modes, providing access to the best and latest camera features.
• Extended HE-AAC software encoder: A new system-provided Extended HE-AAC software encoder, supports both low and high bitrates using unified speech and audio coding, providing significantly better audio quality for voice messages in low-bandwidth conditions, including support for loudness metadata.
• Versatile Video Coding (H.266): Enables OEMs to add codec support by defining the video/vvc MIME type in MediaFormat, adding new VVC profiles in MediaCodecInfo, and integrating support into MediaExtractor.
• Camera device type: New APIs that query the underlying device type to identify if a camera is built-in hardware, an external USB webcam, or a virtual camera.
• Constant Quality for Video Recording: SetVideoEncodingQuality in MediaRecorder configures a constant quality (CQ) mode for video encoders to ensure uniform visual fidelity across the entire video.

Better support for hearing aids

• Bluetooth LE Audio hearing aid support: Android now includes a specific device category for Bluetooth Low Energy (BLE) Audio hearing aids with the new AudioDeviceInfo.TYPE_BLE_HEARING_AID constant, so your app can distinguish hearing aids from regular headsets to provide a tailored experience for users with assistive listening devices.
• Granular audio routing for hearing aids: Android 17 allows users to independently manage where specific system sounds are played. They can choose to route notifications, ringtones, and alarms to connected hearing aids or the device's built-in speaker, helping to avoid unwanted in-ear interruptions while maintaining a Bluetooth connection for hearing aid management apps.

CameraX and Media3

CameraX and Media3 have been updated for Android 17. They are there to do the heavy lifting, smoothing the rough edges of media development and simplifying building reliable camera capture, smooth media playback, and creative and complex editing experiences.

We've released an agent skill that can migrate legacy Android camera implementations (Camera1 or raw Camera2 APIs) to CameraX.

Note: You'll need to update your CameraX version to either 1.5.2 or 1.6.0+ to avoid a crash related to an added dynamic range mode on Android 17 devices.

Get your apps, libraries, tools, and game engines ready!

If you develop an Android SDK, library, tool, or game engine, it's critical to prepare any necessary updates now to prevent your downstream app and game developers from being blocked by compatibility issues and allow them to target the latest SDK features. Please let your downstream developers know if updates are needed to fully support Android 17.

Testing involves installing your production app or a test app making use of your library or engine using Google Play or other means onto a device or emulator running Android 17 Beta 4. Work through all your app's flows and look for functional or UI issues. Each release of Android contains platform changes that improve privacy, security, and overall user experience; review the app impacting behavior changes for apps running on and targeting Android 17 to focus your testing, including the following:

• Resizability on large screens: Once you target Android 17 (SDK 37), you can no longer opt out of maintaining orientation, resizability and aspect ratio constraints on large screens.
• Dynamic code loading: If your app targets SDK 37 or higher, the Safer Dynamic Code Loading (DCL) protection introduced in Android 14 for DEX and JAR files now extends to native libraries. All native files loaded using System.load() must be marked as read-only. Otherwise, the system throws UnsatisfiedLinkError.
• Enable CT by default: Certificate transparency (CT) is enabled by default. (On Android 16, CT is available but apps had to opt in.)
• Local network protections: Apps targeting SDK 37 or higher have local network access blocked by default. Switch to using privacy preserving pickers if possible, and use the new ACCESS_LOCAL_NETWORKpermission for broad, persistent access.
• Background audio hardening: Starting in Android 17, the audio framework enforces restrictions on background audio interactions including audio playback, audio focus requests, and volume change APIs. Based on your feedback, we’ve made some changes since beta 2, including targetSDK gating while-in-use FGS enforcement and exempting alarm audio. Full details available in the updated guidance.
• NPU access declaration: Apps targeting Android 17 that need to directly access the NPU must declare FEATURE_NEURAL_PROCESSING_UNIT in their manifest to avoid being blocked from accessing the NPU. This includes apps that use the LiteRT NPU delegate, vendor-specific SDKs, as well as the deprecated NNAPI.

Get started with Android 17

Your Pixel device should get Android 17 shortly if you haven't already been on the Android Beta. If you don’t have a Pixel device, you can use the 64-bit system images with the Android Emulator in Android Studio. If you are currently on Android 17 Beta 4.1 and have not yet taken an Android 17 QPR1 beta, you can opt out of the program and you will then be offered the release version of Android 17 over the air.

Getting the Android 17 beta on partner devices

Android 17 is available in beta on handset, tablet, and foldable form factors from partners including Honor, iQOO, Lenovo, OnePlus, OPPO, Realme, Sharp, vivo, and Xiaomi.

For the best development experience with Android 17, we recommend that you use the latest Canary build of Android Studio Quail. Once you’re set up, here are some of the things you should do:

Test your current app for compatibility, learn whether your app is affected by changes in Android 17, and install your app onto a device or Android Emulator running Android 17 and extensively test it.

Thank you again to everyone who participated in our Android developer preview and beta program. We're looking forward to seeing how your apps take advantage of the updates in Android 17, and have plans to bring you updates in a fast-paced release cadence going forward.

For complete information on Android 17 please visit the Android 17 developer site.

Posted by Amman Asfaw, Product Manager, Android Studio

Android Studio Quail 2 is now stable and ready for you to use in production, bringing a shift to your IDE with concurrent agentic workflows, natively integrated memory leak profiling, and context-aware crash remediation. Whether you are performing a sweeping architectural overhaul, tracing a memory leak, or resolving a critical production crash, Android Studio keeps you anchored in your workspace by reducing manual friction.

Here’s a deep dive into what’s new:

Multi-tasking with parallel chats

In Android Studio Quail 2, we've been hard at work redesigning Agent Mode from the ground up. This new architecture provides better performance, offers more flexibility for decomposing complex tasks, and improves the suite of internal tools the agent uses to do its work.

• How to use: Click the "+" icon to start a new parallel conversation, and use the History icon to navigate between active tasks. Alternatively, select File > New > New Agent Tab to open a conversation in a dedicated tab.
• Note: Worktree support is currently unavailable. Exercise caution when running concurrent chats that modify the same project files, which can potentially lead to editor conflicts.

Run multiple agent tasks in parallel with different models of your choice.

Memory leak detection with LeakCanary

Memory leaks in Android occur when your code holds onto an object's reference long after its life cycle has ended. This prevents the Garbage Collector from reclaiming that memory, eventually leading to sluggish performance or OutOfMemoryError.

Hunting down memory leaks can be a tedious, manual task. Starting with Android Studio Quail 2, the popular open-source leak detector LeakCanary is natively integrated directly into the Profiler as a dedicated, first-class task.

This integration transforms your debugging performance by lifting and shifting the heap analysis off your resource-constrained testing phone, and onto your powerful development computer. By running the analysis on your computer, leak tracing is up to five times faster and jank-free, leaving your test app running smoothly on the device.

Once a leak is detected during a profiling session:

• The Profiler renders an interactive, color-coded leak trace, grouping occurrences and estimating lost memory.
• You can click Go to declaration on any leaking object in the trace to instantly jump to that exact line of code in your editor.
• You can click Fix with Agent to have the Gemini agent ingest the trace, explain the root cause of the retained reference, and write the exact code change (such as unbinding a listener or clearing a static reference) to plug the leak.

Review memory leaks identified via LeakCanary through the Fix with Agent button.

App Quality Insights agent integration

Tracking down the root cause of an app crash can require manually synthesizing stack traces, device data, and source code. However Android Studio’s App Quality Insights (AQI) is now fully integrated with Agent Mode to do the heavy lifting for you.

When you click on a crash in the AQI panel, you immediately get a concise, high-level summary of the issue. If you need to dig deeper, simply click See more. This opens a dedicated chat where the agent uses your selected model and pulls in local source code and the full stack trace to deliver a comprehensive explanation of the failure.

With the new agent integration, you move directly from issue identification to resolution. By clicking Fix with AI, the agent will analyze the issue, propose a step-by-step fix plan, and—upon your approval—apply the necessary code changes directly to your project and verify the resulting fix

The Fix with AI button triggering the agent to analyze the issue, then propose the fix

Quality & stability improvements

Beyond new features, we’ve continued our focus on quality by addressing numerous bugs and incorporating the latest stability and performance improvements from the IntelliJ platform, making this a significant enhancement for your daily development.

Get Started

Ready to dive in and accelerate your development? Download Android Studio Quail 2 and start exploring these new features today! As always, your feedback is crucial to us. Check known issues, report bugs, and be part of our vibrant community on LinkedIn, Medium, YouTube, or X. 

Read more of this story at Slashdot.

Relay is a macOS native Matrix client, written in Swift, and it looks an awful lot like a Matrix-powered iMessage!

Relay room: https://matrix.to/#/#relayapp:matrix.org
Relay repo: https://github.com/subpop/Relay/

This Week in Matrix: https://matrix.org/twim

Find Matrix.org on the internet:
🐘 https://mastodon.matrix.org/@matrix
🤝 https://www.linkedin.com/company/matrix-org
🦋 https://bsky.app/profile/matrix.org
[m] Office of the Matrix Foundation https://matrix.to/#/%23foundation-office:matrix.org

Source Code Viewer

Crate pages now have a "Code" tab that lets you browse the contents of published crate versions directly on crates.io. This shows you the exact files that cargo downloads when you add a crate as a dependency, which might differ from the linked repository. This makes it much easier to audit your dependencies, including files that never appear in the repository, like the normalized Cargo.toml files that cargo generates.

The viewer comes with a file tree sidebar with search functionality, syntax highlighting, and GitHub-style line selection, where clicking or dragging line numbers produces shareable #L10-L20 URLs.

Under the hood, the server now builds a zip file for every published version. Since the .crate files that cargo consumes are gzipped tarballs without random access support, a background job re-packs each of them into a seekable zip archive plus a JSON manifest describing the contained files. Both are served from our static CDN. The frontend then fetches only the manifest and loads each file on demand with an HTTP range request. Because of this architecture, browsing crate sources essentially adds no load on the crates.io API servers. Existing crate versions have been backfilled, so this works for old releases too.

The rendering library behind the code viewer is a diff renderer at heart, and that's no accident: a version-to-version diff viewer built on the same infrastructure is currently in the works. This will allow you to review exactly what changed between two published versions, right on crates.io. Stay tuned!

Untangling crates.io Accounts from GitHub

At the end of May, the crates.io team accepted RFC #3946. Crates.io accounts always have been tightly coupled to GitHub: signing in means "Log in with GitHub", and your crates.io identity is your GitHub username. The RFC changes that. It introduces usernames that are native to crates.io and independent of linked GitHub accounts, as a prerequisite for eventually supporting login via other identity providers.

The implementation of crates.io usernames has started, but there is still a lot left to do, most visibly the ability to change your crates.io username. After that is complete, there will be future RFCs and implementation for signing in with identity providers other than GitHub. Since all of this touches authentication and account security, we are deliberately taking it slow and rolling these changes out in small, carefully reviewed steps.

Advisories and Suggestions

In our January update we introduced the "Security" tab, which shows security advisories from the RustSec database. We have since taken this integration one step further: crates that RustSec has flagged as unmaintained now show a warning banner directly on their crate pages, linking to the corresponding advisory for details and possible alternatives. Thanks to Dirkjan Ochtman for implementing this feature!

Related to this, some popular crates have been largely absorbed into the Rust standard library over the years, like lazy_static, which has been superseded by std::sync::LazyLock since Rust 1.80. Crate pages of such crates now show a friendly "You might not need this dependency" banner describing the standard library replacement, and superseded crates in dependency lists get a small light bulb icon with a similar hint.

The dataset behind this feature lives in the new rust-lang/std-replacement-data repository, together with a documented inclusion policy: standard library replacements only, every entry must cite the stable std, core, or alloc API and Rust version, and crate maintainers get a notice-and-comment window before an entry is added. New entries can be proposed upstream and can benefit other tools too.

Ferris

The most delightful change of this cycle: the Ferris on our error pages now follows your mouse cursor with its eyes:

Getting a 404 error on crates.io is now slightly less sad.

Svelte Frontend Migration Completed

In our January update, we announced that we were experimenting with porting the crates.io frontend from Ember.js to Svelte. This experiment has concluded successfully: the new frontend reached feature parity, went through a public testing phase in April, became the default at the beginning of May, and the Ember.js app has been removed from our repository.

We designed this change to be invisible for our users, since the new frontend is a 1:1 port of the previous design and functionality. For the team and our contributors, however, it is a big deal: the frontend is now built on a more modern framework, which should make it easier for new contributors to get started. It also allows us to iterate faster, as the source code viewer above demonstrates.

We want to thank the Ember.js team for a framework that served crates.io well for many years, and the Svelte team for making the transition so enjoyable.

Miscellaneous

These were some of the more visible changes to crates.io over the past six months, but a lot has happened "under the hood" as well:

• Search performance: Relevance-sorted search queries previously ranked every crate matching the query, which could take 1-2 seconds for short or common search terms. Ranking is now bounded to the 1,000 matching crates with the highest recent download counts.

• Reverse dependencies performance: The reverse dependencies endpoint no longer recomputes the full dependent set on every request. It is now served from a precomputed table kept in sync by database triggers, turning an expensive join into a bounded index scan and greatly reducing the chance of getting a timeout error.

• New ARCHITECTURE.md: If you've ever wondered how crates.io actually works, our ARCHITECTURE.md document got a complete rewrite. It is now organized around the high-level systems that make up crates.io and how they fit together, and includes walkthroughs of what happens when you run cargo publish, why a typical crate download never touches our API servers, and how download counts are derived from CDN access logs.

• Definition lists: READMEs now render Markdown definition lists, a widely used Markdown extension. Our markdown renderer comrak already supported them, the extension just wasn't enabled yet. Thanks to @mistaste for this contribution!

• CDN cache tags: Files uploaded to our static CDN now carry cache-tag metadata, allowing us to invalidate all cached files of a crate or a specific release in a single operation, instead of issuing one invalidation per file URL.

• Caching improvements: We removed a global Vary: Cookie response header that was preventing our CDNs from caching public API responses and frontend assets effectively. Per-user responses now use Cache-Control: no-store instead, resulting in better cache hit rates at the CDN edge.

• Accessibility: We have made crates.io friendlier to screen readers: decorative icons are now hidden from the accessibility tree, heading hierarchies have been fixed, and lists are marked up as proper lists. ARIA snapshot tests now ensure that regressions can't slip in unnoticed. We plan to continue to improve crates.io accessibility over the coming months.

• Git index performance: The background worker's local clone of the git index is now a bare and shallow repository, eliminating roughly 250,000 checked-out files and the full commit history from its disk, improving its performance as we see increased rates of crate publication. The periodic index squashing now goes through the GitHub API instead of generating large git packs locally, which had previously caused out-of-memory failures on the production worker.

Feedback

We hope you enjoyed this update on the development of crates.io. If you have any feedback or questions, please let us know on Zulip or GitHub. We are always happy to hear from you and are looking forward to your feedback!

Abstract: This Article updates and expands on 2012 research on encryption and globalization, analyzing what the authors call “Round 3” of the Going Dark Debate: the current controversies over end-to-end encryption (E2EE). Governments around the world have proposed, and in some cases enacted, laws limiting E2EE for law enforcement and national security purposes.

This Article explains the underlying technologies and market developments for a law and policy audience to assess those proposals critically. The Article proceeds in three parts tracking three rounds of the Going Dark Debate. Round 1 covers the Crypto Wars of the 1990s, when U.S. export controls on strong encryption ultimately fell in 1999. Round 2 covers the period roughly 2010 to 2015, when encryption-in-transit became widespread but lawful access remained available through cloud providers, giving rise to what the authors called a “golden age of surveillance” rather than a period of going dark. Round 3 addresses the current debate over E2EE, where no entity between sender and recipient can read the plaintext...

Huawei may have just become NVIDIA’s biggest problem in China.

In this video, we break down Huawei’s new Ascend 950PR AI chip, why it matters for the global semiconductor war, and how U.S. export restrictions may have accelerated China’s push toward technological independence. The Ascend 950PR is designed mainly for AI inference and is built by SMIC using advanced DUV multi-patterning. Huawei is also attacking NVIDIA’s biggest advantages beyond hardware by building a CUDA compatibility layer through CANN and scaling thousands of Ascend NPUs together inside the Atlas 950 SuperPod using UnifiedBus interconnect technology. We also look at reported demand from ByteDance, Alibaba Cloud, and Tencent, the role of DeepSeek models optimized for Ascend hardware, and why NVIDIA could lose major market share inside China even without Huawei beating its most advanced chips in every benchmark. This is bigger than one AI chip. China is building a parallel AI ecosystem across chips, software, networking, cloud infrastructure, and AI models — and Huawei is quickly becoming the center of it.

#Huawei #NVIDIA #AIChips #Ascend950PR #ChinaTech #Semiconductors #ArtificialIntelligence

VentureBeat Research measured the five controls an enterprise has to build before it can trust an agent: identity, evaluation, cost telemetry, the context layer, and orchestration. Identity governs which agent is allowed to do what, under whose credentials. Evaluation determines whether the agent's work is any good. Cost telemetry tracks what each agent costs to run. The context layer supplies the business data and definitions agents draw on when they answer. And the orchestration control plane coordinates multi-step agent work. Each of our five reports measures one of those controls.

Most deployed "agents" are chatbots wearing the label. Seventy-one percent of enterprises said a quarter or fewer of their deployed "agents" can complete multi-step work on their own; only 10% said true agents are the majority of what they run. These respondents are positioned to know: 81% recommend or decide AI purchases at their companies. A single-prompt chatbot with a human reading every answer needs none of the controls the other four reports measure. A true multi-step agent needs all of them — and most enterprises can't say which one they've deployed. (Full findings: Agentic Orchestration report.)

Autonomy is outrunning trust in the evaluations that gate it. Two-thirds of enterprises either already allow an agent to push a code or system change to production on automated evaluation results alone, with no human review, or are actively engineering toward that within 12 months. Only 5% fully trust the evaluations that would make that call — and half of enterprises shipped an agent that passed internal evaluations and then caused a customer-facing failure in the past year. Before removing human review from any workflow, test evaluations against production outcomes rather than internal benchmarks. (Full findings: Agent Reliability & Evals report.)

Companies that let agents share credentials get hit more often. Sixty-nine percent of companies let at least some of their agents share credentials — multiple agents operating under one API key or service account. Organizations that allow credential sharing anywhere experienced a security incident or near-miss at a 63.5% rate (47 of 74), against 40.9% (nine of 22) at companies where every agent has its own scoped identity. The fix is scoped identity for every agent, starting with the ones that touch production systems. (Full findings: Agentic Security & Identity report.)

The most expensive hardware in the building runs at half capacity or less. More than eight in 10 enterprises that run their own GPUs reported utilization of 50% or less, and only 44% rigorously track what their AI compute actually costs and returns. The number worth chasing first isn't more GPUs — it's the utilization and per-workload cost of the ones already running. (Full findings: AI Infrastructure & Compute report.)

Agents answer confidently from data nobody governs. Fifty-seven percent of enterprises traced a confident, wrong agent answer in the past six months to their own missing or inconsistent business context — wrong metrics, stale definitions, absent documents — and most saw it happen more than once. Governing the definitions agents answer from — metrics and entities first — has to come before scaling the agents that depend on them. (Full findings: Context Layers / RAG report.)

No layer has an entrenched incumbent: The defaults today are the built-in tools that ship with the big AI platforms enterprises already use. Switching intent runs highest in orchestration itself, where 68% plan to adopt, add, or replace platforms within 12 months and 34% within the quarter. Our surveys did not ask which direction that money moves — toward the platforms' built-in tools or toward the specialists challenging them — and that open question is the next four quarters of this market.

About this research

VentureBeat Research fielded five parallel surveys in June 2026 under its VB Pulse program: Agentic Orchestration (101 respondents), Agent Reliability & Evals (157), Agentic Security & Identity (107), AI Infrastructure & Compute (107), and Context Layers / RAG (101) — 573 qualified respondents in total, all at organizations with 100 or more employees. Samples are self-selected, and some findings should be read directionally; each report carries its full methodology note. What the pattern supports more strongly than any single percentage is the direction: every survey, independently, points the same way. VentureBeat produces both this research and VB Transform, the conference where these reports debuted.

Adversaries are abusing the cloud-native you trust to blend in and remain undetected.

See how Falcon Cloud Security detects adversary behavior in real time with Cloud Detection and Response (CDR).

🚀 Start your free 15-day Falcon Cloud Security trial: https://cs.link/urOUt

• Add Claude Opus 5 across the Anthropic, Claude Code, Bedrock, Vertex, Cline, and OpenRouter providers, including 1M context window variants.
• Add Moonshot Kimi K3 support.
• Include the host plugin version in telemetry events.

Fixed

• Correct pricing for the Claude Opus 1M context variants, which overstated costs for requests above 200k tokens.
• Enable native tool calling for Kimi K3 models, fixing empty responses.

Full Changelog: v4.0.10...v4.0.11

The post OpenAI Launches ChatGPT Personal Finance Feature, Prompting Privacy Debate appeared first on PrivacySavvy.

Introduction 

Today, Google Threat Intelligence Group (GTIG) will begin rolling out a unified naming schema for tracking threat actors. This new naming taxonomy represents an effort to standardize tracking across platforms and public reporting.

Why are we Adopting a Different Naming System?

Historically, Mandiant and Google’s Threat Analysis Group (TAG) maintained distinct tracking systems, relying on parallel naming schemas that grew independently over time. The creation of GTIG has necessitated a new, fused tracking system, and a new naming system. Thinking to the future, GTIG’s new system will rely on cryptonyms. Relying on sequential numbers or disparate identifiers (e.g. APT1) fails to provide defenders the critical context needed to operate quickly. Threat tracking shouldn’t be an exercise in memorization, but rather one of intuition. The new naming convention aligns with industry standard threat actor naming systems. 

Our New Schema

Our new schema utilizes a cryptonym-based approach, employing memorable two-word combinations for each distinct threat actor:

• The first word is a unique and memorable term chosen to represent the specific actor, particularly names that may have been used in prior public reporting. If no previously used term exists, this word is randomly generated to remove bias, then vetted by our analysts.

• The second word categorizes threat clusters by motivation, attribution, or activity type based on which category we consider to be most important for defense and response strategies.

The table below provides a sample of how threat actor categories will map to the second word in each cryptonym:

Table 1: Examples of Google’s new threat actor naming system categories

We know there are many threat actor tracking schemas in the industry, so we are intentionally seeking to keep this system as simple as possible to streamline operations and facilitate mapping to other naming taxonomies. However, a significant caveat remains: because no two organizations have the exact same visibility into the threat landscape, direct, apples-to-apples comparisons between threat actors are rarely possible. Transitioning to a convention that is simpler to follow and remember is a practical step toward managing a highly intricate tracking problem. 

A Work in Progress

We have initially prioritized renaming several dozen of the most active groups, and will continue this process on a rolling basis. Previous names will remain indexed and searchable in the Google Threat Intelligence (GTI) platform, with MITRE ATT&CK mappings and other vendor aliases preserved, see Figure 1. 

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The announcement, made by Microsoft AI's Superintelligence team, lands roughly a year after the company committed to building purpose-built models internally, and it arrives with an unusual level of specificity about where those models now run: Bing, PowerPoint, OneDrive, Dynamics 365, Excel, GitHub Copilot, and Azure. The message to enterprise buyers — and, implicitly, to OpenAI — is that Microsoft's homegrown models are no longer research projects. They are production infrastructure serving millions of users.

"Each of these enhancements is a step toward the same goal: Microsoft products, powered by Microsoft models," the company wrote in its announcement blog.

How MAI-Image-2.5-Pro and MAI-Voice-2-Flash stake out opposite ends of the AI cost curve

The two new releases occupy opposite ends of what Microsoft calls the quality-speed-cost curve, and the positioning is deliberate. MAI-Image-2.5-Pro targets the premium tier: hero imagery, detailed editing, and precise in-image text rendering — the last of which has long been a notorious weak spot for image generation models. Microsoft priced the model at $5 per million text input tokens, $8 per million image input tokens, and $106 per million image output tokens. The base MAI-Image-2.5 model recently launched at No. 2 for image editing on Arena, the community leaderboard that has become a de facto scoreboard for generative media.

The creative industry appears to be taking notice. Rob Reilly, global chief creative officer at advertising giant WPP, called the Pro model "a strong leap forward for GenMedia tools" in a statement included in Microsoft's announcement, adding that "Microsoft has firmly established itself among the leaders in generative AI."

MAI-Voice-2-Flash goes the other direction. First previewed at Microsoft's Build conference, Flash runs twice as fast as MAI-Voice-2 and costs 32% less, priced at $15 per million characters. It is designed for the unglamorous but enormous market of high-volume voice — call centers, voice agents, and real-time speech applications where latency and cost-per-call matter more than marginal gains in expressiveness. Together, the two models reflect a strategy of building families of models rather than a single flagship, because, as the company put it, a creative studio chasing maximum fidelity has very different needs from a customer service operation handling millions of calls a day.

Microsoft's production metrics show in-house models cutting GPU costs by up to 89%

The model launches are arguably less newsworthy than the deployment metrics Microsoft attached to them — numbers that read like a systematic case for swapping out third-party frontier models across its product portfolio. 

Bing Image Creator now runs entirely on MAI-Image-2.5, end to end, marking the first time the consumer image tool is fully in-house. In PowerPoint, Microsoft says MAI-Image-2.5 reduces GPU costs by up to 84% compared with GPT-Image-2, OpenAI's image model. In OneDrive, where MAI-Image-2.5 is now the default for key image-editing scenarios, the company reports a 26% increase in save rates, roughly 25% lower P95 latency, and 2.5 times greater efficiency under medium-utilization production workloads.

On the voice side, MAI-Voice-2-Flash now powers Dynamics 365 Contact Center — the platform used by customers including T-Mobile and EasyJet — where Microsoft claims GPU cost reductions of up to 89%. The model is also integrated into Azure Voice Live for developers building speech-to-speech agents.

Perhaps the most consequential deployment sits in healthcare. Microsoft's Dragon Copilot, used by 170,000 medical providers and responsible for processing 28 million patient encounters last quarter, now runs on MAI-Transcribe-1.5 for its multilingual workflow across 58 languages. Microsoft says internal evaluations show a 50% relative reduction in both transcription and language-identification error rates across most languages — a meaningful claim in a domain where transcription errors can propagate directly into clinical notes.

Inside the 'hill-climbing' strategy that lets small models beat GPT-5.6 in Excel

In a companion post published the same day, Microsoft detailed the methodology behind these results — what it calls its "hill-climbing machine," an integrated flywheel of data, models, and the product "harness" that surrounds them.

The clearest example is MAI-Code-1-Flash, the lightweight coding model launched in GitHub Copilot in June. Microsoft says the model achieves an approximately 10% higher code accept rate than GPT-5.4 Mini and Claude Haiku 4.5 in VS Code, while using 10% fewer median tokens. Developer retention tells a similar story: users were 6% more likely to return across multiple days than with GPT-5.4 Mini, and 11% more likely than with Claude Haiku 4.5.

Then Microsoft did something more interesting. It took the MAI-Code-1-Flash checkpoint and further trained it inside an Excel reinforcement learning environment, teaching a coding model the tools and workflows of spreadsheet knowledge work. The result, according to production user feedback, is a model on par with GPT-5.6 for the most common Excel tasks — while being small enough to run on Nvidia's older H100 and even A100 GPUs rather than requiring the latest-generation accelerators.

That hardware detail deserves emphasis. Every major AI company is fighting for allocation of cutting-edge chips, and a model that delivers frontier-adjacent quality on two-generation-old silicon fundamentally changes the deployment economics. It also frees the newest hardware — including Microsoft's now-operational GB200 cluster — for training rather than serving.

Satya Nadella's 'frontier diffusion' manifesto redraws the OpenAI relationship

Microsoft CEO Satya Nadella framed the announcements in a lengthy post on X titled "Frontier Diffusion & Control," which functions as something close to a strategic manifesto. "We can now take saturated frontier capabilities and deliver them at scale and at lower cost through models optimized for high-usage products, while continuing to use frontier models for frontier needs," Nadella wrote, adding that Microsoft is "beginning to route traffic across our first-party surfaces to MAI whenever our models match or outperform frontier alternatives."

Translated from executive prose: capabilities that were state-of-the-art a year ago are now table stakes, and Microsoft believes it can replicate them cheaply for the specific, repetitive tasks that dominate real product usage. Why pay frontier prices for a frontier model when a user just wants to reformat a spreadsheet column?

Nadella was careful to note that "frontier models from OpenAI and Anthropic are part of the orchestration system alongside MAI" — but he also articulated a pointed principle of model independence, arguing that a company's evaluations "should continue to hill climb even when any given model has been removed." 

“Keeping the harness, memory, context, and skills outside the model, he argued, is what gives Microsoft control. The subtext is hard to miss. Reuters reported in April that Microsoft’s exclusive license to OpenAI’s technology had been revised into a non-exclusive arrangement, and The Information reported last September that Microsoft had begun incorporating Anthropic models into some products. Wednesday’s announcement completes the triangle: Microsoft as orchestrator, with its partners’ frontier models as interchangeable components and its own models absorbing an ever-larger share of routine traffic.”

Developers cheer cheaper task-specific models while skeptics question Microsoft's track record

The response online captured both the appeal and the skepticism surrounding the strategy. "I love when people use small models for niche tasks," wrote one X user, @mavihsk, responding to Nadella's post. "Why do I have to use the all-knowing model just to change my field in Excel?" Another user, @nabu_lines, distilled the pitch neatly: "cost and performance both improve when you stop overusing the biggest model."

Others were less charitable about Microsoft's execution track record. "Microsoft is the worst when it comes to listening to user feedback," wrote designer @designedbyabin, arguing the company "will lose the AI race because they repeatedly failed to understand user needs." And one user, @tokenoverflow, offered a drier critique of the model-independence pitch: "i want it keep hill climbing after removing microsoft."

The skeptics raise a fair point. Microsoft's self-reported metrics — accept rates, save rates, GPU savings — come from its own internal evaluations, not independent benchmarks, and the company chooses which comparisons to publish.

But the strategy's logic does not depend on any single number. Nadella's framing that software now has "real marginal cost for the first time" explains why Microsoft is obsessive about tokens, GPUs, and serving costs: when AI features run on every keystroke across a billion-user product portfolio, an 84% GPU cost reduction is not an optimization. It is the difference between a viable business and a money pit.

Why Microsoft is turning its internal AI playbook into an Azure product

The final piece of the strategy is that Microsoft is selling the playbook, not just the models. Nadella explicitly positioned the hill-climbing approach as "a template for every other AI native, SaaS, or Enterprise company," and Microsoft is packaging the toolchain through Foundry and what it calls Frontier Tuning — letting enterprises train specialized models against their own proprietary evaluations and reinforcement learning environments. That turns Microsoft's internal cost-cutting exercise into an Azure product, and it gives enterprise customers a reason to run their AI workloads on Microsoft's cloud even if the models themselves come from elsewhere.

The company's emphasis on models trained "on clean, traceable, enterprise-grade data, without distillation from third-party models" serves the same commercial end. In an industry facing mounting scrutiny over training data provenance, Microsoft is betting that enterprise buyers — and courts — will care where model capabilities come from. Microsoft says it is now extending the hill-climbing approach to Copilot Chat, Outlook, and PowerPoint, and both new models are available in public preview through Microsoft Foundry and the MAI Playground. "None of this is an endpoint," the company wrote. "We're just getting started."

Seven years ago, Microsoft bet more than $13 billion that OpenAI would build the future of AI. Wednesday's announcement suggests the company has since learned a cheaper lesson: the future of AI may belong to whoever builds the frontier, but the profits belong to whoever makes it ordinary.

Heute fällt der Startschuss für AMD Epyc Venice als neue Server-Prozessoren mit Zen-6-Architektur. Parallel gibt es einen Ausblick auf die Nachfolger. Laut Epyc-Roadmap folgt 2028 Florence mit Zen 7 und AI Compute Extensions. Zwei Jahre später soll bereits Ravenna mit Zen 8 im Jahr 2030 erscheinen.

VentureBeat's June 2026 Pulse survey of 107 enterprise respondents explains why the room was full. More than half, 54%, have already had a confirmed agent security incident (18%) or a near-miss caught before harm (36%). Just 32% give every agent its own scoped, managed identity, and fewer still, 30%, isolate their highest-risk agents in sandboxes. Provider-native and hyperscaler controls remain the primary agent security layer at 82% of companies surveyed. The world's largest security vendors have done the same math.

Palo Alto Networks closed its $25 billion acquisition of CyberArk in February, CrowdStrike agreed in January to pay $740 million for SGNL, and Cisco announced its intent to acquire Astrix Security for a reported $400 million, all of it aimed at the identity and isolation layer most enterprises have not finished building.

Chang came to the panel with almost two decades of experience spanning cybersecurity operations, government, and the military. She ran global cybersecurity operations as an executive director at JPMorgan Chase, where she led the bank's cyber threat intelligence teams, and served as a senior staffer on the House Foreign Affairs Committee and as a U.S. Navy Reserve officer. She also teaches cybersecurity and emerging threats as adjunct faculty at the Middlebury Institute of International Studies.

Chang's 88.3% number comes from a study she co-authored with Nicholas Conley, built on 30,090 single-turn prompts and 6,986 multi-turn attacks against those 15 closed and proprietary flagship models. Multi-turn success rates ranged from 7.89% to 88.3%, every model tested showed non-trivial multi-turn exposure, and the two testing styles did not even rank the models in the same order. Cisco publishes adversarial evaluation signals for what is now 105 models on its LLM Security Leaderboard, she told the audience.

"If you don't understand how models are susceptible to different types of attacks, then you are unable to account for how that model that is powering your agent, that is powering your application, to understand where those failure points are," Chang said. Single-turn testing is the one-shot malicious prompt, she explained, while extending an attack into a longer conversation "is more realistic of how we are actually engaging with our models, with our agents, with our applications." That longer arc surfaces harmful outputs and misaligned behaviors that a snapshot never catches.

Cisco has pushed the testing itself into agentic territory. Chang described a framework where agents assess a deployment scenario, develop relevant attacks, judge whether they are worth pursuing, execute them, and evaluate their own success. What surprised her most, after all that sophistication, was how simple the defensive answer stays. "The answer is still that it's pretty simple," she said. "You don't have to get super creative. You just need to think about truly what are the fundamentals and basics of what I'm trying to secure in my organization."

Her starting point for CISOs beginning agentic deployments is Cisco's Integrated AI Security and Safety Framework, which she said "stipulates all the ways that AI can be compromised across the AI lifecycle" from modality through supply chain. From there, teams can work backward from real incidents, trace how each attack was achieved, and use the framework to build a strategy with the right coverage and mitigations.

Heather Ceylan, the CISO of Box, sees the same gap from the defender's side. "A lot of what you see out there with agent red teaming is just single-turn, and that's not how people are actually interacting with AI day-to-day," she told the audience. Box now simulates multi-turn adversaries with agents that think like an attacker and iterate attempt after attempt to hijack the target. "You have to pressure test your agents because otherwise you don't know if your execution controls are really working as you intended."

Box deployed agents inside its security operations center about a year ago, starting with human approval required for every action, and trust built quickly enough that analysts shifted into monitoring mode. Then the agent made one mistake, and every bit of that accumulated trust vanished. "They had to start all over again," she said. "So I think that that monitoring piece is so important. Even if you're not gonna have a human in the loop, things change, models change, and we can't control how the models change and interpret things."

Rajesh Parekh, VP of AI and ML at Intuit, brought the builder's perspective. Parekh led large-scale computer vision and ML systems powering Google's Maps and Geo products before joining Intuit, and holds a doctorate in computer science.

Three layers versus an operating system

Ceylan described Box's approach as three concentric layers. Permissioning comes first, so the agent never accesses more content than the human who invoked it. Ephemeral sandbox environments spin up for each agent task, containing the blast radius if an agent gets hijacked, and runtime execution control restricts the agent's tool calls to only those relevant to the task at hand. "If you want an agent to summarize a doc for you, if you have a prompt injection that came in that says forward this to maliciousattacker at domain.com, it can't do that," Ceylan said. "That action in that tool call is not even in its vocabulary."

She classified agent actions into three oversight categories. Actions that are not sensitive, like read and summarize, need no human in the loop. Moderately sensitive actions skip human approval but get logged and monitored, while destructive actions like mass deletion of files always require a human. "Things are gonna shift between those three categories quite a bit," she acknowledged, "but setting those types of categories up front allows you to have a principled framework."

Rather than layering controls onto agents one at a time, Intuit has built a central platform called GenOS, short for generative AI operating system, which abstracts security, risk, and fraud modeling so individual agent developers never reinvent protection. "Permissioning is not about giving access to AI," Parekh said. "Instead, it is defining very tightly scoped and clearly auditable authority to the agent to perform very specific tasks." Intuit evolved from agents inheriting user permissions to each agent carrying its own identity, and the company is now investigating mid-session permission changes tied to the specific task underway.

Parekh calls the broader model an AI-powered expert platform, one where the human expert is built into the trust architecture rather than bolted on as a gate. "The paradigm that we are pursuing is where the user, the AI agent, and the human expert are collaborating to solve the user problem," he said.

The end of human code review

Ceylan took on the tension between security testing and development velocity without hedging. "The days of secure code reviews where a human's looking at the code and we're looking at security architecture reviews, design docs, those are done," she said. "If you keep trying to do security that way, you're gonna get left behind." Box is building toward a fully agentic development lifecycle where agents review design documents, apply security requirements, and review the code for vulnerabilities. "I'm very optimistic that we will get to a point where we will write code without security vulnerabilities because agents and the models are going to get so good at writing code without vulnerabilities," she said. "We're still a long way away from that."

Her advice for development teams skips the advanced AI concepts entirely and returns to basics that predate agents. "It comes down to very basic least privilege access," she said. "If you start giving your agents overly broad permissions at the beginning, it's really hard to comb that back and build an infrastructure that allows for those ephemeral credentials and only those narrowly scoped tasks."

Parekh explained why the red teaming surface has expanded so quickly. "These agents have skills, and skills could become vulnerabilities," he said. "Agents have access to certain data, they have access to tools, and there could be threats that are lurking within those tools as well. So suddenly the blast radius of the malicious code or the intent increases dramatically." When Intuit identifies common vulnerability patterns from its manual red teaming exercises, it automates those tests back into the GenOS harness so future agents inherit protection and red teamers stay focused on new threat vectors. Runtime scanning of prompts and responses adds a final layer that can stop a suspect response and escalate to a human expert, he said.

"You need to continuously test to ensure that those remain robust to the protections that you have built, as well as to account for any sort of drift or any other types of dependencies that you introduce into your scenario that can create novel vulnerabilities," she said.

Intent versus probability

An audience question about intent detection set off the sharpest exchange of the session. Ceylan noted that when Box's own agent operates, the system always knows the user's intent because it controls the prompt, which means guardrails and tool-call restrictions can be engineered around it. The harder challenge, which she admitted Box is still trying to solve, arrives when external agents connect and the context behind the request is opaque.

That exchange exposed a split running through the wider industry. Mastercard, in the fireside chat immediately preceding the panel, came down on the side of quantifying intent, building an open-source framework to propagate it as a standard because complex B2B procurement cannot work without that trust. Endpoint security CTOs, in briefings with VentureBeat, have gone the other way, saying they will bet on probability rather than intent inference for production workloads. Chang explained why models, as they are trained today, cannot reliably derive intent from a prompt, which is why deterministic controls and behavioral proxies remain necessary. Ceylan agreed that both are required. "If you're not doing anything deterministic, you're really relying heavily on that intent, and I haven't seen programs that are there yet," she said.

Ceylan's story about trust collapsing after a single agent mistake landed as the panel's most memorable moment because enterprise agentic security is not a problem that gets solved and stays solved. Models change, permissions drift, and adversaries adapt across multi-turn conversations that snapshot tests never capture.

For the 82% of enterprises relying on provider-native controls as their primary security layer, and the 59% shopping for agent security tooling over the next 12 months, the panel's takeaway was blunt. Test the way attackers attack, across full conversations and continuously, or find out in production what your single-turn red teaming missed.

The Freiburg, Germany-based AI lab says FLUX 3 is jointly trained across those modalities rather than assembling separate image, video and audio models behind a common interface.

That distinction is central to the company's pitch: BFL wants enterprises to think about creative generation, simulation, computer use and robotics as connected applications of a single capability it calls visual intelligence — models, in the company's words, "that can perceive, predict, and act across physical and digital environments." This release marks BFL's first public video generation model.

FLUX 3 will be offered through four product lines: FLUX 3 Video, FLUX 3 Image, FLUX 3 Action and the upcoming, open source FLUX 3 Dev. FLUX 3 Video, with optional native audio generation, and FLUX 3 Action are entering a gated "Early Access" program now, to which anyone can apply, but which BFL must approve.

There is presently no public access through BFL's application programming interface (API) or those of partners yet, but the company says FLUX 3 Image will roll out in the coming weeks, followed by general availability. The limited initial availability rollout echoes the release strategies of new models from other frontier labs in the U.S. lately, including Anthropic and OpenAI, though those were ostensibly for security concerns and due to government request.

What the company has not announced is pricing, production service-level commitments, evaluation methodology, sample sizes, rater counts or any image-model benchmarks at all. Enterprise buyers therefore cannot yet calculate total cost of ownership or independently reproduce the video comparisons.

Another big notable omission: FLUX 3 is not launching with downloadable weights at this time, nor an open source license. BFL says faster and open-weight versions will arrive later this year, and its technical blog names FLUX 3 Dev as "open-weight access to a multimodal backbone, for content creation (video, audio and image) and action prediction" — a considerably broader commitment than any previous FLUX Dev release, all of which covered images only.

But it arrives last in the sequence. Developers accustomed to receiving a locally deployable FLUX variant alongside — or soon after — a major model announcement will have to wait. That delay does not negate the company's commitment, but it is disappointing given the role open weights have played in FLUX's adoption thus far.

Flux 3 is rated higher than the competition, but missing pricing and benchmarking details may prevent rapid enterprise adoption

BFL has published several benchmark comparisons, but they're qualified as preliminary — with full benchmark results and methodology to be published later during broader general availability.

In early head-to-head preference testing on 10-second, 720p text-to-video clips with audio, the company says FLUX 3 was preferred over Luma Ray 3.2 in 93% of comparisons, Runway Gen-4.5 in 77%, Grok Imagine Video in 69%, Kling v3 Pro in 60%, Happy Horse v1 in 59%, Happy Horse 1.1 in 57%, and both Seedance 2.0 and Google's Gemini Omni Flash in 52%.

One caveat travels with every one of those figures, and it comes from BFL itself. The chart carrying the results is labeled a "preliminary evaluation of an early FLUX 3 candidate" — meaning the numbers describe a pre-release checkpoint rather than the model now entering early access. That cuts both ways: the shipping model may perform better, but nothing published today measures what customers will actually call.

Luma Ray 3.2 and Runway Gen-4.5, where FLUX 3 posted 93% and 77%, are the softest comparisons on the list — established products, but not the models currently setting the pace in independent video rankings. Those are real wins, and they are the ones least likely to change an enterprise shortlist.

Seedance 2.0, at 52%, is a statistical coin flip against a model most Western enterprises cannot currently procure. ByteDance indefinitely postponed Seedance 2.0's international rollout after Netflix, Warner Bros., Disney, Paramount and Sony sent legal threats over alleged systematic copyright infringement, and that suspension remains in place. Tying a frozen product is neither a strong claim nor a damaging one.

Gemini Omni Flash, also at 52%, matters much more. Omni is the closest large-platform analogue to what FLUX 3 is attempting — multimodal input, video and audio-aware creation, conversational editing — and by BFL's own measurement, the two are indistinguishable on 10-second text-to-video quality.

Google's advantage in that matchup is that Omni is generally available via Google's Gemini API for $0.10 per second of generated 720p video, or a 10-second clip for around.

One regional wrinkle matters for a German company's home market. Editing uploaded video is unavailable to Omni Flash users in the European Economic Area, Switzerland and the United Kingdom, though editing video the model itself generated is permitted. A European enterprise that wants to run its existing footage through a generative editing pass cannot currently do so on Omni Flash.

Here's a rough guide for enterprises considering which video models to rely upon:

One architecture for media generation and physical action

FLUX 3 builds on Self-Flow, BFL's method for aligning multimodal understanding and generation within one architecture, publicized back in March 2026.

The company says it significantly scaled up compute and data to train across video, images and audio simultaneously, and that testing showed video generation and action prediction do not require separate foundations — the same architecture could be extended to action prediction without sacrificing what it learned from video.

"We place vision at the center of our approach because it is the most signal-rich medium of the physical world. Images convey structure, images and video teach spatial relationships, video teaches dynamics, and actions reveal causal relationships. But vision alone is not the complete picture," said Robin Rombach, co-founder and CEO of BFL, in a pre-release statement provided to VentureBeat. "True intelligence means perceiving the world: predicting how it will change, taking action, and learning from the results. Joint training within one unified architecture is what will get us there, because each training modality strengthens the others. Audio conveys timing, prosody, and physical events that elude vision. Language conveys goals, abstractions, and instructions that pixels cannot easily express."

He put the case more bluntly elsewhere in the announcement: "You can't cheat reality. A model that only learns images can only generate images. But the world is not made of still frames. It moves, sounds, changes, and responds."

BFL says FLUX 3 targets creative tooling, media, design, e-commerce and physical AI, supporting video generation with synchronized audio, precise image editing, product and material consistency across motion, multilingual generation and robotic action prediction. It is already being tested by Canva, Burda, Magnific (formerly Freepik), Krea and Picsart.

For creative software companies, the appeal is consolidation. A single foundation could potentially support storyboarding, image editing, product rendering, video variation and localization without repeatedly translating assets and instructions between disconnected models.

For robotics teams, the potential value is data efficiency. Models that already encode motion, object behavior and physical change may need less task-specific robot training than systems starting from raw demonstrations.

What FLUX 3 Video can actually do

The video tier is the most concretely specified part of the launch, and it settles a question that had been circulating as rumor: FLUX 3 generates clips of up to 20 seconds with audio in a single generation.

Every video output comes with native audio. For comparison, HappyHorse 1.0 tops out at 15 seconds of 1080p with synchronized audio — though BFL has not stated what resolution its 20-second clips run at, and its published evaluations were conducted at 720p. Still, a 20-second long clip from a single prompt is among the longest yet achieved, matching OpenAI's discontinued Sora model.

The capability list BFL published covers:

• Text-to-video generation.

• Image-to-video generation, either animating from a starting frame or using images as visual references.

• Video-to-video generation from a reference clip, carrying elements such as a specific character into a new scene or context.

• Generative video-audio continuation from existing video and audio input.

• Keyframe-to-video generation for controlled transitions between defined moments.

• Multilingual dialogue.

• A broad range of visual styles and aspect ratios, from candid camcorder footage to animation and cinematics.

• Typography generation and animated design.

• Agentic chaining of individual clips into longer, multi-shot sequences.

That last item is the one enterprise video teams should look at hardest. BFL claims the capabilities combine to produce sequences lasting several minutes, with visual references keeping characters consistent across scenes. If that holds up under production conditions, it addresses the constraint that has kept generative video out of most commercial pipelines: not clip quality, but continuity across shots.

It is also the capability where competition is most direct. HappyHorse 1.1's headline upgrade is R2V, or Reference-to-Video, which accepts multiple character reference images to hold identity stable across generated footage — the same problem, approached at the input layer rather than through agentic clip chaining. Alibaba also claims zero-drift lip sync and has specifically targeted the artifacts that mark commercial AI video as synthetic, including facial oiliness and over-sharpening. Character consistency is where this category is being contested, and both companies know it.

BFL says FLUX 3 Video is already particularly strong at human facial expressions, associating sounds with physical events, and multilingual output. On the image side, the company says preliminary evaluations conducted during midtraining show significant improvement over earlier FLUX versions in complex prompt handling and text generation, including high-accuracy text in multiple languages. It published no image benchmarks or win rates.

FLUX-mimic tests whether video models can become robot models

BFL is applying its unified-architecture thesis through FLUX-mimic, a video-action model built on FLUX 3 and developed with Swiss firm Mimic Robotics, one of the first partners to receive early access.

The technical blog describes two distinct routes to action prediction: integrating native action prediction directly into FLUX 3, scaling up the initial Self-Flow work; and using the pretrained video backbone as a dynamics-aware foundation from which specialized action models can be finetuned with limited task-specific data. FLUX-mimic is the second route — the FLUX 3 backbone combined with mimic's robot-learning and production-deployment expertise in dexterous manipulation.

FLUX-mimic is designed for general-purpose robotic manipulation: helping robots understand a visual scene, predict the consequences of an action, and adapt to new tasks with far less task-specific data.

BFL and Mimic Robotics say that depending on task difficulty, the model can be finetuned for a specific manipulation task with as little as 30 minutes of robot data, where prior approaches have required 30 or more hours.

"The hardest part of robotics is data," said Elvis Nava, CTO of Mimic Robotics, in a statement provided to VentureBeat. "Every new task normally means hours of a robot repeating itself. Because FLUX-mimic is built on top of frontier video models that already understand how the physical world behaves, it picks up a new task in minutes, not days. This way, we can leapfrog the current state of the art in robot learning."

BFL argues that a model trained only on images cannot understand a world that "moves, sounds, changes, and responds," and that physical understanding is what produces convincing generated footage. Google makes a nearly identical claim for Gemini Omni.

Its developer documentation cites "world knowledge" that combines "an understanding of physics" with Gemini's grasp of history, science and cultural context. Its marketing is blunter still: "Most AI models just predict the next pixel to build a narrative or an image. Gemini Omni is different," the company posted in June, crediting the model with "an intuitive understanding of forces like gravity, kinetic energy, and fluid dynamics for more realistic movements that follow real-world logic."

The practical consequence for enterprise buyers is that world-model language is not a differentiator. Two of the three leading video systems now market physical understanding as their central advantage, and neither has published a benchmark that measures it.

There is no standard test for whether generated water behaves like water, whether a dropped object falls at a plausible rate, or whether a sound arrives when the impact does. Human preference ratings capture some of it indirectly. Nothing else on offer captures it at all.

Open weights helped make FLUX an industry standard

BFL officially launched in summer 2024 and gained a name for itself in the AI industry in the intervening two years for its commitment to open sourcing high-quality AI image models beloved by developers, creatives, and enterprises.

The company's founders, including Rombach, Andreas Blattmann and Patrick Esser, previously helped create VQGAN, latent diffusion and Stable Diffusion, the latter the open source technology that kicked off broad AI generation capabilities for the masses and currently used by many AI image generators and companies.

That reach translated into commercial distribution. FLUX models now power generative features inside Adobe Photoshop, Picsart and Nous Research's Hermes Agent, among other platforms, and the company cites film director Martin Scorsese among professional users.

Wired magazine described Black Forest Labs as a relatively small company that nevertheless became a leading competitor to Silicon Valley's largest AI labs, with FLUX models ranking near the top of image benchmarks and becoming some of the most downloaded text-to-image models on AI code sharing community Hugging Face. The company says it now runs a 100-person team across Freiburg and San Francisco.

FLUX.1 Dev, FLUX.1 Kontext Dev, FLUX.1 Fill Dev and related control models, released shortly after the firm's launch, gave researchers and creative-tool developers access to downloadable checkpoints, local inference and integrations with frameworks including Hugging Face Diffusers and ComfyUI. FLUX.1 Kontext Dev, for example, was released as an open-weight model for research and noncommercial use, with generated outputs permitted for commercial purposes under the applicable license.

The company continued that pattern with FLUX.2 Dev in late 2025, a 32-billion-parameter open-weight model combining generation and multi-reference editing. Black Forest Labs called it the strongest open-weight image generation and editing model available at launch and released weights, reference inference code and optimized implementations for consumer Nvidia GPUs.

FLUX 3 Dev raises the stakes on that evaluation. Previous Dev releases were image models. This one is described as a multimodal backbone spanning video, audio, image and action prediction — meaning a single license will govern whether a company can locally deploy a model that touches both content production and physical machinery. BFL hasn't yet shared information about its license, the parameter count, quantizations or hardware requirements.

The company frames open weights as an enterprise feature rather than a community gesture, arguing they enable secure, low-latency local deployment for applications like robotic control systems and let teams adapt FLUX 3 to their own data, products and workflows.

The financial backing behind FLUX 3 is worth noting alongside the technical claims. Black Forest Labs is valued at $3.25 billion and has raised more than $450 million from investors including a16z, AMP, Salesforce Ventures, Nvidia, General Catalyst, Adobe Ventures, Figma Ventures, Canva and Deutsche Telekom's T.Capital.

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Black Forest Labs has released Flux 3, a multimodal foundation model that learns from images, video, and audio and can generate video with native sound for the first time. BFL's own tests put it just ahead of market leader Seedance 2.0, though independent results aren't yet available. The company ultimately wants to build a world model and is already testing Flux 3 on robotics tasks.

The article Flux 3 generates videos with native audio up to 20 seconds long, a first for Black Forest Labs appeared first on The Decoder.

This wave of VentureBeat Pulse Research examines enterprise agent orchestration: which platforms enterprises run on, what drives the choice, what they optimize for, how they expect agent control to be structured, and — most revealingly — how orchestrated their deployed “agents” actually are and how tightly they control the cost of running them.

The central finding is a gap between orchestration ambition and orchestration reality. Enterprises are consolidating fast onto the major model platforms: Anthropic’s Claude is the primary platform for 40%, more than double any rival, followed by Microsoft (18%) and OpenAI (13%). The choice is driven by “model gravity” — native alignment with a state-of-the-art base model (21%) — and success is judged by reliable, multi-step execution (task completion reliability 32%, multi-step workflow management 28%). Yet asked to assess their portfolios honestly, 71% say a quarter or fewer of their deployed “agents” are true multi-step orchestrated workflows rather than single-prompt chatbot wrappers, and only 10% have crossed the halfway mark. The orchestration layer is being built well ahead of the orchestrated portfolio it is meant to run.

That gap shapes the architecture enterprises are putting in place. By the end of 2026 a clear majority (51%) expect a hybrid control plane — provider-native plus external orchestration — and only 6% expect to hand control to a provider-managed service, because vendor lock-in (35%) is the risk they fear most if control lives inside a model provider. Investment follows the build-out: agent workflow tooling leads the spend (34%), with security and permissions enforcement (25%) behind. And fiscal control lags throughout — more than a quarter (27%) have no real-time way to stop a runaway agent before the bill arrives.

Methodology

VentureBeat fielded this survey as part of its ongoing Pulse Research series, this instrument focused on enterprise agent orchestration. Responses are filtered to organizations with 100 or more employees (n=101), drawn from a single June 2026 wave; because this is one wave rather than a pooled multi-month sample, the report reads cross-sectionally and does not infer month-over-month trends.

By organization size the sample is spread evenly across the enterprise bands: 100–499 employees, 2,500–9,999, and 50,000+ (21% each), with 10,000–49,999 and 500–2,499 (19% each). By role it is senior and buyer-credible: product and program managers (15%), CIO/CTO/CISO (13%), consultants and advisors (13%), and a spread of data, AI, and engineering directors and VPs, with an “Other” function at 18%. On purchasing, 81% are recommenders, influencers, or final decision-makers for AI solutions (66% recommender/influencer, 15% final decision-maker). Technology/Software is the largest industry at 44%, followed by Financial Services (17%) and Healthcare/Life Sciences (8%).

At 101 respondents the sample is robust enough to read directionally with reasonable confidence, though it remains self-selected and is not a probability sample.

Finding 1: Orchestration runs on model-provider platforms

Anthropic’s Claude leads; open frameworks are marginal

We asked which agent orchestration platform enterprises primarily use today. The answer concentrates on the major model providers — and on one in particular.

A note on reading these shares. As described in the methodology section, the respondents are self-selected, and this question asked them for a single primary platform — so the figures measure which platform leads each enterprise's deployment, within a self-selected audience of AI-active technical decision-makers. A sample built this way can diverge substantially from spend-weighted market measures, and each VB Pulse survey draws its own sample with its own company-size mix, so vendor figures should not be compared across our surveys either. Read these shares as a portrait of where this cohort has placed its primary orchestration bet today, rather than as market share.

The model platforms dominate. Anthropic, Microsoft, OpenAI, Google, and Amazon together account for roughly 80% of deployments (81 of 101), while the open frameworks (LangChain/LangGraph) and custom in-house builds that anchor engineering discussion sit in single digits. Anthropic’s lead — 40%, more than double the next platform — mirrors the “model gravity” selection logic in Finding 2: enterprises are choosing the orchestration layer that comes with the model they want to build on. As with the security vendors in the prior agent-security wave, the tools that define the category in technical circles are not yet where enterprise deployment concentrates. A small 3% are not orchestrating at all.

Respondents rate the platforms they run at 3.94 out of 5 overall (109 answered), with “value for money” specifically at 3.94 and “ease of implementation” the weakest score, at 3.85 — placing orchestration near the bottom of our five-tracker satisfaction range, ahead of only evaluation tooling. A rating just under 4 out of 5, from users of whom 96% plan to change their orchestration approach within the year, reads as provisional acceptance: the platforms work well enough to run today, and not well enough to stop the search for something better. The ratings sit alongside near-universal intent to change; this is a layer enterprises tolerate more than they love.

Finding 2: Model gravity drives platform selection

The base model, not the tooling, decides the platform

We asked what most influenced the orchestration platform choice. The single largest factor is the pull of the underlying model — though flexibility and ease of development follow close behind.

Model gravity leading is the selection-side explanation for Anthropic’s platform lead: enterprises pick the orchestration environment closest to the frontier model they have standardized on. But the next tier complicates the picture — flexibility across models and tools (17%) and ease of development (17%) say enterprises also want to avoid being trapped by that choice, foreshadowing the lock-in fear in Finding 6. Security and permissions (14%) and total cost of ownership (11%) round out a pragmatic buying logic. Performance (latency/memory) sits last at 4%, a reminder that at this stage of adoption the binding constraints are model fit and optionality, not raw speed.

Finding 3: The job is reliable multi-step execution

Enterprises just orchestration by whether it completes the work

We asked what enterprises optimize for — their primary success metric for orchestration. Reliability and multi-step workflow management dominate; developer- and user-facing metrics trail.

Task completion reliability (32%) and multi-step workflow management (28%) together account for 59% of responses (60 of 101): orchestration succeeds, in the enterprise view, when it reliably carries a task through multiple steps to completion. Developer productivity (17%) matters but is secondary — the inverse of its prominence in framework discussion — and end-user experience (9%) is a minor concern, consistent with orchestration being an internal execution problem rather than a UX one. This reliability-first standard is exactly what makes the Chatbot Trap finding so pointed: enterprises define success as dependable multi-step execution, yet most of their deployed “agents” do not yet do multi-step work at all.

The trap is not evenly distributed. Splitting the sample by organization size, 77% of smaller enterprises say a quarter or fewer of their agents do true multi-step work, against 62% of larger ones. Larger enterprises are meaningfully further into genuine multi-step deployment; the chatbot trap is, directionally, a mid-market condition.

Finding 4: Consolidate, productionize, and build in-house

Three strategic moves are nearly tied for the year ahead

We asked what major change enterprises anticipate in their orchestration strategy over the next 12 months. Three moves cluster at the top, almost evenly split.

The top three — building in-house control (25%), standardizing on one framework (24%), and moving agents from sandbox to production (23%) — are statistically indistinguishable and tell a single story: enterprises are moving from experimentation to operational consolidation. They want fewer frameworks, more production exposure, and more ownership of the control layer; only 4% expect no change. The appetite for custom in-house control planes is notable alongside the platform concentration in Finding 1 — enterprises are standardizing on model-provider platforms while simultaneously planning to wrap them in control logic they own, the hybrid posture that Finding 6 makes explicit.

Finding 5: Nearly seven in 10 plan to switch — and the biggest group of movers has no shortlist 

The strategic change enterprises anticipate (previous finding) comes with vendor motion attached. Asked whether they plan to adopt a new, additional, or replacement agent orchestration platform in the next twelve months, more respondents are moving here than in any other layer we track.

Asked which platforms they are considering, the most common answer among those in motion is none yet: 29% of all respondents are evaluating without a shortlist, the largest single response after "not considering a change." Among named candidates, OpenAI leads at 16%, followed by LangChain/LangGraph at 12% and Anthropic at 7% — and notably, the independent frameworks draw roughly double their current usage footprint in forward consideration, the same pattern our security tracker found for specialist vendors. Read with this report's concentration and lock-in findings, the picture completes itself: the major model-platform providers hold roughly four-fifths of today's primary usage, vendor lock-in has become the leading fear, 96% anticipate a strategic change — and now the purchase intent to act on all of it, with the largest bloc of buyers still undecided. The most concentrated layer of the agentic stack is also, as of June, the least settled.

Finding 6: Investment flows to workflow tooling

Tooling and permissions lead the spend; monitoring trails

We asked which orchestration-related investment will grow most next year. Agent workflow tooling leads, with security and permissions enforcement behind.

Workflow tooling leading (34%) is the budget-side expression of the reliability-and-multi-step priority in Finding 3: the money is going to the machinery that strings steps together dependably. Security and permissions enforcement (25%) and scaling infrastructure (20%) follow — the investments required to take agents from sandbox into production, the strategic move in Finding 4. Monitoring and debugging draws a smaller 11%, with another 11% reporting flat budgets. The weight on tooling, permissions, and scaling over pure observability signals that enterprises are spending to build and harden orchestration, not merely to watch it run.

Finding 7: The control plane will be hybrid — and lock-in is why

Enterprises expect to split control between providers and their own layer

We asked where enterprises expect the primary control plane for agents to live by the end of 2026, and what worries them most if that control sits inside a model-provider platform. A clear majority expect a hybrid model — and vendor lock-in is the reason.

Hybrid control is the dominant expectation by a wide margin (51%), and only 6% expect to hand control to a provider-managed service outright. Read together, the hybrid, custom, and externally-abstracted options — every architecture that keeps control at least partly outside the provider — sum to 88% (89 of 101). The reason surfaces directly when we asked about the risk of provider-resident control: vendor lock-in leads at 35% (35 of 101), ahead of security and permissioning limitations (28%) and inflexibility across models and tools (21%). The pattern echoes the prior wave’s “don’t trust the model to police itself” posture — here, enterprises will build on a provider’s platform but decline to be governed entirely by it. The hybrid control plane is the architectural hedge against the lock-in they most fear.

The June figure asserting a preference for a hybrid control plane marks movement from earlier. In the April–May survey (n=145), only 34% expected a hybrid control plane, and a greater number (12%) expected to hand control fully to a provider-managed service. These two snapshots don’t yet measure a confirmed longitudinal trend — but the direction of the conversation is unambiguous: toward keeping control.

Lock-in is also a new arrival as a top concern. In the April–May wave, the leading concern was security and permissioning limitations (32%), with lock-in second at 24%; by June the two had traded places. The worry about provider platforms appears to be maturing from whether they can be secured to whether they can be replaced.

Finding 8: The chatbot trap — most “agents” aren’t agents yet

Enterprises admit most deployments are still chatbot wrappers

We asked enterprises to assess their portfolios honestly: what share of their deployed “agents” are true multi-step orchestrated workflows versus simple single-prompt chatbot wrappers. The answer is the defining finding of this wave.

This is the gap at the center of the report. Combining the bottom two bands, 71% of enterprises (72 of 101) say a quarter or fewer of their deployed “agents” are genuinely orchestrated — and just 10% (10 of 101) have crossed the halfway mark. The ambition documented in the earlier findings — model-provider platforms, reliability-first success metrics, production rollouts, a deliberate control architecture — runs well ahead of the deployed reality, which remains overwhelmingly single-prompt assistants dressed as agents. This is less a contradiction than a roadmap: the platforms, budgets, and strategies are being put in place precisely because the orchestrated portfolio is still so thin. The open question for later waves is how fast the reality closes on the ambition.

Finding 9: Fiscal control is still reactive

Only a minority can stop a runaway agent before the bill arrives

Finally, we asked how enterprises enforce fiscal control over agent token consumption — the risk that an autonomous loop exhausts a budget before anyone intervenes. Most rely on native caps or after-the-fact monitoring; real-time programmatic control is the exception.

More than a quarter of enterprises (27%) admit they have no real-time, programmatic way to stop an agent before a budget-breaking bill arrives — they learn of it from the logs afterward. Another 32% lean entirely on the native caps and throttles built into their primary platform, a control only as good as the provider’s tooling and one that ties back to the lock-in concern of Finding 6. The enterprises building custom gateways (23%) or exploiting cross-model routing to arbitrage cost (19%) are the ones treating token burn as an engineering problem to be controlled deterministically. As with orchestration maturity, fiscal control is an area where the operational reality lags the ambition: agents are moving toward production faster than the cost-control plane around them is being built.

It’s worth noting, a split appears according to company size: roughly one in three enterprises under 2,500 employees (34%) exercises only reactive control of agent spend, against 20% of larger enterprises — directional figures, but consistent with the chatbot-trap split. The mid-market is running the least mature agents on the least instrumented budgets.

The bottom line: The layer is real; most of the agents aren't yet

Organizations with 100 or more employees describe an orchestration strategy that is consolidating quickly and maturing slowly. They are standardizing — for now — on model-provider platforms, which collectively hold roughly four-fifths of primary usage, chosen for the gravity of the underlying model, and they judge success by reliable multi-step execution. Investment is flowing to workflow tooling and permissions, the strategy is to consolidate frameworks and push agents into production, and the control plane they expect is deliberately hybrid, because vendor lock-in is the risk they fear most. But the standardization is provisional: 68% plan to adopt a new, additional, or replacement orchestration platform within twelve months — the highest switching intent of any layer we track — and the largest group of those movers has not yet shortlisted a candidate. Today's concentration describes where enterprises are, and visibly does not describe where they intend to stay.

But the honest self-assessment punctures the ambition. Seventy-one percent say a quarter or fewer of their deployed "agents" are truly orchestrated, only 10% are past the halfway mark, and more than a quarter cannot stop a runaway agent in real time. The orchestration layer — the platforms, the budgets, the control architecture — is being built ahead of the orchestrated portfolio it is meant to run. At 101 respondents in a single June wave this reads as a clear directional signal rather than a precise measurement: enterprises have decided how they want to orchestrate agents well before most of their agents are doing anything an orchestration layer is for. The questions for subsequent waves are whether the deployed reality closes the gap on the ambition — and, with nearly seven in ten buyers in motion and most of them undecided, which platforms the settled stack finally lands on.

Based on survey responses from 101 qualified enterprise respondents (100+ employees), drawn from a single June 2026 wave. Because this is one wave rather than a pooled multi-month sample, results read directionally rather than as a confirmed trend. Respondents include product and program managers, CIOs, CTOs and CISOs, consultants and advisors, and directors and VPs of data, AI, and engineering, across Technology/Software, Financial Services, Healthcare, and other sectors.

This wave of VentureBeat Pulse Research examines how technical leaders measure agent performance: which reliability and evaluation platforms they use, how they select and trust them, what breaks in production, and how far they are willing to let agents run without a human in the loop.

The central finding is an evaluation gap — the distance between the autonomy enterprises are granting their agents and the trust they place in the evaluations meant to govern it. Half of organizations (50%) have, in the past year, deployed an agent or LLM feature that passed their internal evaluations and then caused a customer-facing failure, and a quarter have seen it happen more than once. Trust in the tests themselves is thin: only 5% say they fully trust automated evaluation today, and the single most-cited limitation is that evaluations align poorly with real-world outcomes (29%). Enterprises are discovering that a passing eval is not the same as a working agent.

What makes the gap consequential is the direction of travel. Two-thirds of organizations (66%) already permit fully automated, zero-human-in-the-loop deployment for low-risk agents (34%) or are actively engineering their pipelines to allow it within twelve months (33%). At the same time, the evaluation stack that would have to earn that trust is fragmented and immature: the most common primary tools are the model providers’ native evals, tied with having no dedicated tooling at all (17% each); and only about a quarter of enterprises run real-time quality checks on live production traffic. The autonomy is arriving faster than the assurance.

Methodology

VentureBeat fielded this survey as part of its ongoing Pulse Research series, this survey — the Agentic Reliability & Evals tracker — focused on how technical leaders evaluate agent performance and reliability. Responses are filtered to organizations with 100 or more employees (n=157), drawn from a single survey in June 2026; because this is one wave rather than a pooled multi-month sample, the report reads cross-sectionally and does not infer month-over-month trends. Where questions were multiple-select, those shares can sum to more than 100%.

By role the sample is senior and buyer-credible: 38% are final decision-makers for AI purchases and another 34% recommenders or influencers. Product and program managers (15%), consultants and advisors (10%), directors of engineering/IT (8%), and CIOs/CTOs/CISOs (8%) lead the named titles, alongside a large “Other” function (37%). By organization size the sample is mid-market-weighted: 100–499 (37%) and 500–2,499 (27%) employees lead, with 2,500–9,999 (20%), 10,000–49,999 (10%), and 50,000+ (6%) above them. Technology/Software is the largest industry at 23%, followed by Retail/Consumer (15%), Healthcare/Life Sciences (12%), and Manufacturing (10%).

At 157 respondents the sample is large enough to read directionally but should be treated as a directional signal rather than a precise measurement; it is self-selected and is not a probability sample. It skews toward the mid-market, so it is best read as the view from organizations actively standing up agent evaluation practices rather than from the largest operators.

Note: This survey was rebuilt for the June wave from the earlier “LLM observability and evaluations” survey; because the questions and sample differ, no comparisons are made to the April–May data.

Finding 1: A passing eval is not a working agent

Half have shipped an agent that passed evals, then failed a customer

We asked whether, in the past 12 months, organizations had deployed an agent or LLM feature that passed their internal evaluations but then caused a customer-facing failure. Half of those that run evaluations had.

This is the report’s defining number. Half of organizations (50%) have shipped an AI feature that cleared their internal evaluations and then failed in front of a customer — an incorrect output, a broken workflow, or a quality incident — and a quarter have seen it happen more than once. Only 36% report no such failure, and the remainder either run no pre-deployment evaluations (8%) or don’t track the root cause closely enough to know (6%). The failure is precise and expensive: the evaluation said the agent was ready, and it was not. Everything that follows — how enterprises trust their evals, what they monitor, and how much autonomy they grant — is shaped by this experience.

Finding 2: Almost no one fully trusts automated evaluation

The top complaint: Evals don't match real-world outcomes

We asked which limitation most reduces trust in automated agent evaluations today. Only a sliver of enterprises had no complaint at all.

Trust in automated evaluation is scarce, and specific. Only 5% of organizations say they fully trust automated evaluation as it stands — meaning 95% name a limitation that holds them back. The most common, at 29%, is the one that most directly explains Finding 1: evaluations align poorly with real-world outcomes, passing agents that later fail. Bias or inconsistency (21%) and a lack of explainability (18%) follow — enterprises cannot always tell why an evaluation reached its verdict — and 17% cite data-leakage or privacy concerns in the evaluation process itself. The tests meant to certify agents are not yet trusted to certify them, which is precisely why the autonomy trajectory in Finding 3 is so striking.

Finding 3: The autonomy ceiling is rising anyway

Two-thirds already allow, or are building toward, zero-human deployment

We asked whether organizations would let an autonomous agent deploy a code or system change to production on automated evaluation results alone, with no human-in-the-loop validation. The trajectory runs straight through the trust gap.

Here is the paradox at the heart of the report. Even though almost no one fully trusts automated evaluation (Finding 2), two-thirds of organizations (66%) either already allow zero-human-in-the-loop deployment for low-risk agents (34%) or are actively engineering their pipelines to permit it within a year (33%). Only 22% rule it out for the foreseeable future. The direction is unambiguous: enterprises are moving to let evaluations gate production autonomously — removing the human check — at the same moment they say those evaluations don’t reliably match reality. The autonomy ceiling is rising faster than the assurance beneath it, which is the mechanism by which the false-confidence failures of Finding 1 will scale rather than shrink.

Notably, the autonomy bet is not just a small company phenomenon. Splitting the sample by company size, larger enterprises are slightly further down the path toward zero human review than smaller companies (70% versus 64%) and slightly more likely to have shipped an evaluation-passing agent that then failed a customer (54% versus 48%). The assumption that large, regulated organizations are holding the human in the loop longest is, in this sample, backwards.  To be sure, these are directional figures, since the survey was not a huge sample — 57 respondents from companies with 2,500+ employees and 100 from companies smaller than that. 

Finding 4: The evaluation stack is fragmented and provider-led

Provider-native evals lead — tied with no dedicated tool at all

We asked which agent reliability or evaluation platform enterprises primarily use today. The market has no clear leader — and a large share has nothing dedicated.

The evaluation layer is early and unconsolidated. Provider-native tooling leads — OpenAI’s native evals and traces (17%) and Anthropic’s Claude Console evals (13%) together outweigh any independent platform — but it is tied at the top by a striking answer: 17% of enterprises use no dedicated agent-evaluation tooling at all, a notable gap for organizations shipping agents to customers. The specialist evaluation vendors — DeepEval (12%), Braintrust (8%), LangSmith, Weave, Promptfoo, Langfuse, Arize — are scattered across single to low double digits, and 11% have built their own. No independent platform has yet become the category standard, which leaves most enterprises evaluating agents with provider-native tools, home-grown scripts, or nothing.

Finding 5: Production monitoring rarely watches output quality

Only a quarter run real-time quality checks on live traffic

Production monitoring for an AI agent can watch two very different things. It can watch whether the system is functioning — is the agent up and responding, did each request complete, how fast, at what cost, with any errors. Or it can watch whether the agent's output is correct — automated checks that evaluate the content of each answer as it goes out: did the agent give the right answer, take the right action, stay within policy. The distinction matters because a confidently wrong answer is invisible to the first kind of monitoring: the request completes, the response is fast, no error is thrown, and every functioning-metric reads healthy. We asked organizations which kind their live production monitoring is built for today.

Grouped by what is actually being watched, the split is stark: 51% of organizations monitor only whether the agent is functioning, while 23% monitor whether its answers are right. Counting the ad-hoc reviewers and the don't-knows, roughly three-quarters of organizations run no automated, real-time evaluation of output correctness in production — they can see that the system is up and what it costs, and they are taking the correctness of its answers on faith. That blind spot is the runtime counterpart to the pre-deployment gap in Finding 1: the same organizations engineering the human out of the deployment decision mostly cannot see, in real time, when the deployed agent starts getting things wrong.

Finding 6: Bought on cost, measured on consistency

Price and integration drive selection; evaluation consistency is the goal

We asked what most influenced enterprises’ choice of an evaluation vendor, and what they treat as their primary measure of success. Both answers are pragmatic.

Enterprises buy evaluation tooling on economics and trust it on repeatability. Cost of evaluations (28%) narrowly leads selection, just ahead of ease of integration (27%) and evaluation accuracy (24%) — breadth of observability (13%) and vendor roadmap (4%) matter far less. On what success looks like, more than a third (36%) name evaluation consistency — getting the same verdict on the same behavior every time — well ahead of speed of experimentation (19%), reduction in failures (18%), production visibility (13%), and compliance (11%). The emphasis on consistency is telling: before enterprises can trust an evaluation’s verdict, they need it to be stable — the very property whose absence (bias and inconsistency) ranked among the top trust limitations in Finding 2. Satisfaction with current tooling is only moderate, averaging 3.8 on a five-point scale across overall satisfaction, ease of implementation, and value for money.

Finding 7: The next dollar goes to humans and observability

Investment is flowing to oversight, not just automation

We asked which reliability and evaluation investment will grow most over the next year. The money is going toward watching agents more closely — including with people.

The second-largest planned investment — behind only production observability — is human review workflows, at 26%. Read against Finding 1, that is the report's quietest contradiction: at the same moment two-thirds of enterprises are engineering the human out of the deployment decision, more of them plan to grow spending on human reviewers (26%) than on the automated evaluation pipelines (16%) that would replace them. The zero-human trajectory and the human-review budget are rising in the same companies at the same time. Indeed, only 8% report that their budget is not increasing.

Taken together, enterprises are hedging: building toward autonomy while spending to watch agents more closely and keep humans available for the calls that automated evaluation cannot yet be trusted to make.

Finding 8: A tooling reshuffle is coming

Nearly two-thirds plan to adopt or switch platforms within a year

We asked whether enterprises plan to adopt a new, additional, or replacement evaluation platform, and which they are considering. Few intend to stand pat.

The evaluation market is wide open. While 36% have no plans to change, a clear majority (64%) intend to adopt a new, additional, or replacement platform within twelve months, and 31% within the next quarter. The consideration set points where current usage is thinnest: Confident AI’s DeepEval leads what enterprises are evaluating (20%), ahead of OpenAI’s native evals (13%) and Braintrust (9%) — the open-source specialists drawing more interest than their present footprint.

Given that so many enterprises today rely on provider-native tools or nothing at all (Finding 4), this is less a defection than a first real wave of tooling adoption — the moment the evaluation layer starts to consolidate. Which platforms earn that trust, in a market where almost no one trusts automated evaluation yet, is the open question this series will keep tracking.

The bottom line: An evaluation gap that autonomy will widen, not close

Organizations with 100 or more employees are granting AI agents more independence than they trust their evaluations to support. Half have already shipped an agent that passed its evals and then failed a customer; almost none fully trust automated evaluation, chiefly because it doesn’t match real-world outcomes; and most watch production for uptime and cost rather than for whether the agent’s answers are right. Yet two-thirds already allow, or are actively building toward, deploying to production on automated evaluation alone.

The vendor market is early and unsettled: the most common primary evaluation tools are provider-native evals, tied with no dedicated tooling at all, and a clear majority plan to adopt or switch platforms within the year. Encouragingly, the next dollar is going to observability and — pointedly — human review, suggesting enterprises sense the gap even as they engineer past it. At 157 respondents in a single wave this is a directional read, skewed toward the mid-market — but the direction is clear: autonomy is being granted on the strength of evaluations that the people granting it do not yet trust. The evaluation gap is not a coverage problem that more tests alone will close; it is a problem of evaluations that reflect reality and can be trusted to gate it. The open question for later waves is whether assurance catches up to autonomy — or whether the false-confidence failures move from customer incidents into changes that deploy themselves.

Based on survey responses from 157 qualified enterprise respondents (100+ employees), drawn from a single June 2026 wave. This is a directional read rather than a precise measurement — the sample is self-selected, not a probability sample, and skews toward the mid-market. Respondents include product and program managers, consultants and advisors, directors of engineering/IT, and CIOs/CTOs/CISOs, among other functions, across technology/software, retail/consumer, healthcare/life sciences, manufacturing, and other industries.

This wave of VentureBeat Pulse Research examines the enterprise RAG and context layer: what feeds AI agents their business context, which retrieval systems enterprises run, how they buy and measure them, where the architecture is heading, and — most revealingly — how often that context is already failing them.

The central finding is a context gap — the distance between how confidently enterprise agents answer and how reliable the context beneath them actually is. A majority of enterprises (57%) report that in the past six months their AI agents produced confident but wrong answers they traced to missing or inconsistent business context, and more than half of those said it happened more than once. This is not a fringe failure: retrieval is the primary context source for 38% of enterprises, more than any other approach, so when retrieval is thin or inconsistent, the errors it produces are wearing the agent’s authority. The infrastructure to fix it is being built — 58% already run or are building a governed semantic layer — but for most it is not yet in production.

Underneath, the market is consolidating in a direction that surprises. Provider-native retrieval — OpenAI’s file search (40%) and Google’s Vertex AI Search (38%) — already leads every dedicated vector database, and enterprises expect hybrid retrieval to dominate by the end of 2026 (34%). Yet a plurality (36%) say they intend to keep best-of-breed standalone tools rather than consolidate onto a provider’s native context stack, and a majority (57%) plan to switch or add a provider within the year. Stated preference and actual usage are pulling in opposite directions — the market is buying provider-native while insisting it wants independence.

Methodology

VentureBeat fielded this survey as part of its ongoing Pulse Research series. This survey focused on enterprise RAG infrastructure and the context layer — the retrieval systems, semantic layers, and context sources that feed AI agents. Responses are filtered to organizations with more than 100 employees (n=101); the survey drew no responses from organizations of 100 or fewer, so the full sample qualifies. All responses are from a single Q2 2026 (June) wave, so the report reads cross-sectionally and does not infer month-over-month trends. Several questions were multiple-select, so those shares can sum to more than 100%.

By organization size the sample concentrates in the mid-market: 251–1,000 employees (31%) and 101–250 (31%) lead, with 1,001–5,000 (20%), 5,001–10,000 (12%), and 10,001+ (7%) above them. By role it spans managers (39%), individual contributors (27%), the C-suite (16%), and VPs and directors (14%); on purchasing authority it is buyer-credible, with 46% final decision-makers and another 26% recommenders or influencers. Technology/Software is the largest industry at 20%, followed by Healthcare/Life Sciences (11%) and a broad spread across retail, transportation, financial services, manufacturing, and education.

At 101 respondents this is a modest sample and should be read as a directional signal rather than a precise measurement; it is self-selected and is not a probability sample. It is best read as the view from organizations actively standing up RAG and context infrastructure rather than from the largest operators.

Finding 1: Confident and wrong

More than half have traced agent errors to bad context

We asked whether, in the past six months, enterprises had traced a confident but wrong agent answer to missing or inconsistent business context. Most had.

This is the report’s defining number. A majority of enterprises (57%) have already had an AI agent produce a confident, wrong answer they traced to bad context — wrong metrics, stale definitions, or missing documents — and more than half of those have seen it happen more than once. Only 28% report no such failure, and a small remainder either don’t run agents on enterprise data or don’t trace root cause closely enough to know.

The failure mode is specific and dangerous: the model is not obviously hallucinating; it is confidently wrong because the context feeding it was thin or inconsistent. Everything else in this report — what enterprises retrieve, how they govern it, and what they plan to build — is downstream of this problem.

Finding 2: RAG is the default context source

Retrieval feeds more agents than any other method

We asked what an enterprise’s AI agents primarily use to understand its data. Retrieval leads by a wide margin.

Retrieval is the backbone of enterprise context. For 38% of organizations, RAG over documents or a vector index is the primary way agents understand the business — nearly twice the share of the next approach, a governed semantic layer or ontology (21%). Mixed approaches (14%), direct live-system queries (10%), and long-context loading (6%) fill out the rest, and only 2% let agents run on the model’s general knowledge alone. The concentration matters in light of Finding 1: because so much enterprise context flows through retrieval, the quality of that retrieval is the quality of the answer. When RAG is the default source, thin retrieval is not an edge case — it is the main failure surface.

One approach is notable for its absence from these answers: customizing model weights, also known as fine-tuning. Every leading source of business context is injected at run time. Our most recent direct measurement of fine-tuning comes from our April–May survey wave (a separate survey, n=136), where fine-tuning capabilities ranked last of six factors in model selection at 5% — even as 26% of that sample still named fine-tuning and customization an investment they expect to grow. Fine-tuning has fallen out of the primary selection conversation; context injection is how enterprises make agents knowledgeable about their business.

Finding 3: Provider-native retrieval already leads the vector databases

OpenAI file search and vertex AI search top the dedicated tools

We asked which retrieval systems enterprises run in production today. The answer favors the model providers and hyperscalers over the specialists.

The dedicated vector database is no longer the center of the RAG stack. OpenAI’s file search (40%) and Google’s Vertex AI Search (38%) lead — provider-native and hyperscaler-native retrieval — ahead of every purpose-built vector database. Among the specialists, the most-used is the one enterprises already run for other reasons (Elasticsearch/OpenSearch, 20%) and the open, embedded option (pgvector, 12%); the pure-play vector databases that define the category — Weaviate, Qdrant, Pinecone, Milvus — each sit in single digits to low double digits. Notably, 13% of enterprises say they still run no production RAG at all. As with the platforms in the parallel infrastructure wave, enterprises are gravitating to retrieval that comes bundled with tools they already buy.

The shape of this finding held across both Q2 waves. In April–May (n=161), provider-built retrieval led usage there too, while every dedicated vector database remained marginal — the most-used standalone vector database peaked at 8% of that sample — and the hybrid, pluralistic future was already the consensus expectation (34% expected hybrid retrieval to dominate, with another 29% expecting multiple architectures by use case). Two waves, consistent picture: the category that coined the “vector database” term is being collected by the platforms enterprises already buy from.

Finding 4: But they say they want to keep best-of-breed

A plurality resist consolidating onto a provider’s native stack

We asked how enterprises will respond as model providers bundle retrieval, memory, and orchestration into their platforms. Their stated intent cuts against their current usage.

Here is the tension at the heart of the stack. Even as provider-native retrieval leads in practice (Finding 3), a plurality of enterprises (36%) say they intend to keep best-of-breed standalone tools rather than consolidate onto a provider’s native context stack — well ahead of the 21% who plan to consolidate. Another 21% expect a mix, and 9% intend to build and own the layer themselves. The gap between what enterprises run and what they say they want is the strategic question of the category: they are adopting bundled retrieval for convenience while asserting they will preserve independence. Which impulse wins — the pull of the provider bundle or the stated preference for modular control — will shape the retrieval market more than any single tool.

Finding 5: Hybrid retrieval is the consensus bet

Vector-only retrieval is already seen as insufficient

We asked which retrieval architecture enterprises expect to dominate their production RAG systems by the end of 2026. The field is converging — with a large share still unsure.

The architecture is settling on hybrid. A third (34%) expect hybrid retrieval — embeddings combined with reranking and access controls — to dominate their production systems by the end of 2026, three times the 11% who expect vector-only retrieval to prevail. That is a notable signal: the pure vector-search approach that launched the category is already viewed as insufficient on its own, superseded by pipelines that add reranking for accuracy and access controls for governance — the very access controls whose absence produces the failures in Finding 1. Tellingly, the second-largest answer is uncertainty: 17% simply don’t know, and another 14% expect to move beyond a dedicated vector layer entirely toward tool-first or long-context retrieval. The consensus is not a single tool but a layered pipeline — and it is not yet fully formed.

Finding 6: The governed context layer is being built now

Most run or are building a semantic layer — few in production

We asked whether enterprises use a governed semantic or context layer to give agents and BI a shared understanding of their data. Most are on the path; fewer have arrived.

The fix for the context gap is under construction. Well over half of enterprises (58%) either run a governed semantic layer in production (25%) or are piloting and building one (34%), and a further 17% are actively evaluating — meaning three-quarters are engaged with the idea in some form. But the balance is telling: more are building than have shipped, so for most enterprises the shared, governed definition layer that would prevent the "confident but wrong" failures of Finding 1 is still a work in progress. The semantic layer is the industry’s answer to inconsistent context; this wave catches it mid-construction, ambition well ahead of production.

Finding 7: Bought on ingestion and simplicity, watched for correctness

Selection favors operability; monitoring favors correctness and security

We asked what matters most when enterprises choose a retrieval system, and what they track once it is running. Both answers lean practical.

Enterprises choose retrieval systems on operability. Ease of data ingestion (36%), latency and performance (32%), and operational simplicity (29%) lead the selection criteria — ahead of retrieval accuracy and access control (23% each), the two factors most directly tied to the failures in Finding 1. Once systems are running, the emphasis shifts toward trust: the most-tracked metrics are response correctness (42%) and security and access control (38%), ahead of latency (28%), operational stability (27%), and answer relevance (23%).

Satisfaction with current systems is moderately positive but not enthusiastic — on a five-point scale, overall satisfaction averages 4.0, with ease of implementation and value for money both near 3.9. Enterprises buy for how easily a system runs and watch it for whether it can be trusted.

Finding 8: A retrieval reshuffle is coming

A majority plan to change providers — and the vector specialists are gaining interest

We asked whether enterprises plan to change or add a retrieval provider, and which they are considering. The consideration set differs from today’s stack.

The retrieval stack is not settled. While 43% have no plans to change, a small majority (57%) intend to switch or add a provider within twelve months, and a quarter (26%) within the next quarter. The consideration set is where it gets interesting: provider-native retrieval still leads what enterprises are evaluating (OpenAI 22%, Vertex AI Search 21%), but the open-source vector specialists punch above their current footprint — Qdrant (14%) and Milvus (13%) draw more switching interest than their present usage (10% and 6%) would suggest. Read with Finding 4, the picture is a market in flux: enterprises run provider-native today, are evaluating a broader field, and say they want to keep their options open. The reshuffle ahead will test whether best-of-breed intent survives contact with the convenience of the bundle.

The bottom line: A context gap that more retrieval alone won’t close

Organizations with more than 100 employees are wiring agents into their business faster than they can guarantee the context those agents run on. Retrieval is the default source of enterprise context, and it increasingly comes from the model providers and hyperscalers rather than the dedicated vector databases — yet a majority of enterprises have already watched agents answer confidently and wrongly because that context was thin or inconsistent. The failure is not exotic; it is the predictable result of pointing authoritative-sounding agents at an unreliable foundation.

The industry’s answer — a governed semantic layer, hybrid retrieval with reranking and access controls — is being built but is mostly not yet in production, and enterprises are pulled between the convenience of provider-native bundles and a stated preference for best-of-breed independence. At 101 respondents in a single Q2 wave this is a directional read, skewed toward the mid-market — but the direction is clear: the context layer is the next contested tier of the AI stack, and right now agents are running ahead of it. The context gap is not a retrieval-volume problem that more documents or bigger indexes will solve on their own; it is a problem of governed, consistent, access-aware context. The open question for later waves is whether enterprises finish building that layer before the confident-but-wrong failures move from the lab into decisions that matter.

Based on survey responses from 101 qualified enterprise respondents (100+ employees), drawn from a single Q2 2026 (June) wave. At this sample size the results should be read as a directional signal rather than a precise measurement — it's a self-selected sample, not a probability sample, and skews toward the mid-market. Respondents include managers, individual contributors, VPs/directors, and the C-suite, with strong purchasing authority, across technology, healthcare, retail, transportation, financial services, manufacturing, and education.

This wave of VentureBeat Pulse Research examines how enterprises secure their AI agents: what tooling they run, how they manage agent identity and isolation, what has already gone wrong, how much they spend, and whether they believe their defenses are keeping pace with AI-enabled attackers.

The central finding is an agent security gap — the distance between the autonomy enterprises are granting their agents and the controls in place to contain them. More than half of organizations (54%) have already experienced a confirmed agent security incident (18%) or a near-miss caught before harm (36%). The structural weakness beneath those numbers is identity: only about a third (32%) give every agent its own scoped, managed identity, while the rest report that some agents share credentials or that agents mostly run on shared API keys and human or service-account credentials. When agents share credentials, a single compromised or over-permissioned agent carries a wide blast radius — and only three in ten enterprises (30%) isolate their highest-risk agents in sandboxes to bound that radius.

What makes the gap notable is how comfortable enterprises are inside it. The security stack is overwhelmingly provider-native — OpenAI’s guardrails (51%), Google’s and Microsoft’s cloud controls, and Anthropic’s managed-agent controls dominate, while the dedicated agent-security specialists barely register — and satisfaction with that borrowed stack is high, averaging 4.2 out of 5. Yet spending remains a thin slice of the security budget, only a third of enterprises believe their AI defenses are ahead of AI-enabled attackers, and a clear majority plan to change tooling within the year. Enterprises are satisfied with controls they are simultaneously preparing to replace.

Methodology

VentureBeat fielded this survey as part of its ongoing Pulse Research series, this instrument focused on enterprise agent security — the tooling, identity, isolation, and enforcement controls organizations use to secure autonomous AI agents. Responses are filtered to organizations with more than 100 employees (n=107; the survey’s smallest size band, 1–100 employees, is excluded), drawn from a single June 2026 wave. Because this is one wave rather than a pooled multi-month sample, the report reads cross-sectionally and does not infer month-over-month trends. Several questions were multiple-select, so those shares can sum to more than 100%.

By role the sample is senior and buyer-credible: 45% are final decision-makers for AI purchases and another 30% recommenders or influencers. Managers (43%), individual contributors (24%), VPs and directors (15%), and the C-suite (11%) make up the seniority mix. By organization size the sample is mid-market-weighted: 251–1,000 (42%) and 101–250 (25%) employees lead, with 1,001–5,000 (19%), 5,001–10,000 (8%), and 10,001+ (7%) above them. Technology/Software is the largest industry at 23%, followed by Manufacturing (15%), Retail/E-commerce (14%), and Healthcare/Life Sciences (13%).

At 107 respondents the sample is large enough to read directionally but should be treated as a directional signal rather than a precise measurement; it is self-selected and is not a probability sample. It skews toward the mid-market, so it is best read as the view from organizations actively standing up agent security rather than from the largest operators.

Satisfaction ratings are computed on the respondents who answered each rating question; the overall satisfaction score reflects 82 of the 107 qualified respondents.

Finding 1: The incidents are already here

More than half have had an agent security incident or near-miss

We asked whether organizations had experienced an agent security incident — a confirmed breach, or a near-miss caught before harm. Most that run agents in production had.

This is the report’s defining number. More than half of organizations (54%) have already had an agent security event — 18% a confirmed incident and 36% a near-miss caught before it caused harm. Only 42% report nothing, and a small remainder either run no agents in production or don’t track such events. That so many report near-misses rather than only confirmed incidents is telling: enterprises are catching problems, but they are catching them close to the edge. The controls examined in the rest of this report — identity, isolation, enforcement — are what determine whether the next near-miss stays a near-miss.

Exposure scales with company size, but containment does not. The incident-or-near-miss rate rises from 49% in the mid-market (companies with 101-1,000 employees) to 63% at larger enterprises (above 1,000 employees), while sandbox isolation of high-risk agents falls from 35% to 20%, and satisfaction with security tooling drops from 4.36 to 3.97. The organizations running the most agents across the most systems carry the most incidents and the least of the one control that bounds an incident's blast radius.

Finding 2: The identity gap

Only a third give every agent its own scoped identity

We asked how enterprises manage the identity of their AI agents — whether each agent has its own credentials, or agents share them. Full per-agent identity is the exception.

Rolled together, the overlapping answers show 69% of enterprises (74 of 107) with credential sharing somewhere in the agent fleet. Identity is the structural weakness beneath the incidents. Only about a third of enterprises (32%) give every agent its own scoped, managed identity — the precondition for least-privilege access and clean attribution. Nearly half (48%) say some agents have scoped identities but many still share credentials, and another 32% say agents mostly run on shared API keys or borrowed human and service-account credentials. (Respondents could describe more than one pattern across their agent fleet, so these overlap.)

The consequence is direct: when agents share credentials, an over-permissioned or compromised agent can act with far more reach than intended, and forensics after an incident cannot cleanly tell which agent did what. The non-human identity problem — giving every agent its own governed identity — is the single largest unfinished piece of enterprise agent security.

Moreover, a company’s agent credential posture is correlated with incidents. Organizations with credential sharing anywhere in the fleet were hit — with an incident or a near-miss in the past twelve months — at 63.5% (47 of 74). Organizations where every agent carries its own scoped identity were hit at 40.9% (9 of 22). The fully-scoped group is small, so for now the relationship is an association rather than proven causation, and the gap is concentrated in the mid-market — but within a single survey, a twenty-three point difference in incident rate suggests significance.

Finding 3: Observe and enforce, but rarely isolate

Only three in 10 sandbox their highest-risk agents

We asked what an organization’s agent security posture looks like in practice — whether they observe, enforce, isolate, or some combination. The control that bounds damage is the least common.

Monitoring and enforcement are reasonably common; containment is not. Roughly half of enterprises observe agent activity (47%) or enforce scoped permissions at runtime (49%), but only 30% isolate their highest-risk agents in sandboxes that bound the blast radius when the other controls fail. That ordering is backwards from a defense-in-depth standpoint: observation tells you what happened, enforcement tries to prevent it, but isolation is what limits the damage when prevention fails — and it is the control enterprises have adopted least. Combined with the identity gap in Finding 2, the picture is of agents that are watched and permissioned but rarely boxed in, which is precisely the configuration in which a single failure propagates.

Finding 4: Security runs on borrowed, provider-native controls

Guardrails from OpenAI, Google and Microsoft dominate; specialists barely register

We asked which agent security tooling enterprises use, and which is their primary layer. The answer favors the model providers and hyperscalers over the dedicated security vendors.

Enterprises are securing agents with tools that came bundled with their models and clouds. OpenAI’s guardrails lead at 51%, followed by Google’s and Microsoft’s cloud-native controls and Anthropic’s managed-agent controls — and when asked to name their single primary security layer, 82% name one of these provider-native offerings. The purpose-built agent-security category — Palo Alto’s Prisma AIRS, CrowdStrike, Cisco AI Defense, Zenity, HiddenLayer, Check Point’s Lakera, Okta for AI Agents, non-human identity platforms — barely registers, each in the low single digits, and only 5% run no dedicated tooling at all. As with retrieval and evaluation elsewhere in this series, the provider bundle is winning the default: enterprises reach first for the guardrails their platform ships, and the independent security layer that would address the identity and isolation gaps has not yet been adopted at scale.

The provider-default pattern is consistent across both Q2 survey waves. In April–May (n=110), usage was led by the same names — OpenAI's controls at 26%, Azure at 15%, AWS at 14%, Google at 12% — with every dedicated agent-security specialist at 3% or below and one in ten using no dedicated tooling at all. The common finding from the two surveys: Enterprises are defaulting to the solutions provided by the platform they’re using, and the specialist category vendors have yet to become big players here.

(A note on reading these shares. As described in the methodology section, the respondent sample is self-selected and skews mid-market, and the usage question counted every vendor or approach a respondent has in place — so the figures measure presence in the security stack rather than spending or exclusivity. Individual vendor percentages therefore carry all the usual sample caveats. The structural pattern, however, held across both Q2 waves on two differently worded questions: provider-native and hyperscaler controls lead, and dedicated agent-security specialists remain in low single digits. Read the individual shares loosely and the pattern with confidence.)

Finding 5: And enterprises are comfortable with it

Satisfaction is high, even as incidents mount and identity lags

We asked how satisfied enterprises are with their current agent security tooling. The comfort is notably out of step with the exposure documented above.

Satisfaction with agent security tooling is high — 4.2 out of 5 overall, and 4.1 for value for money — among the most positive readings in this series. That is the striking part: enterprises are highly satisfied with a stack that is mostly borrowed provider guardrails, even though more than half have already had an incident or near-miss and only a third give their agents scoped identities. The comfort appears to rest on the convenience and low friction of provider-native controls rather than on demonstrated containment. It is a false comfort in the making — the same enterprises expressing satisfaction are, as Finding 8 shows, a clear majority planning to change tooling within the year, which suggests the confidence is thinner than the score implies.

Finding 6: Budgets haven’t caught up

Most spend under a tenth of the security budget on agents

We asked what share of the security budget enterprises allocate to securing AI agents. For a fast-emerging risk, the allocation is modest.

Spending on agent security is still a thin slice. The most common allocation is 6–10% of the security budget (46%), and a third of enterprises (34%) spend 5% or less; only a quarter (24%) devote more than a tenth. Given the incident rate in Finding 1 and the identity and isolation gaps in Findings 2 and 3, the budget looks like a lagging indicator — the risk has arrived faster than the funding to address it. The enterprises spending more than a tenth of their security budget on agents are a distinct minority, and they are likely the ones building the scoped-identity and isolation controls the rest have not.

Finding 7: The arms race is even, at best

Only a third think their AI defenses are ahead of AI-enabled attackers

We asked how enterprises assess the balance between their AI-enabled defenses and AI-enabled attackers. Confidence is far from settled.

Enterprises are split on whether they are winning. Only about a third (35%) believe their AI-enabled defenses are ahead of AI-enabled attackers; the rest are less sure — 32% call it roughly even, 21% think attackers are ahead, and another 21% say it is too early to tell. Taken together, a clear majority (53%) rate the balance as even or tilted toward the attacker. That uncertainty sits uneasily beside the high satisfaction of Finding 5: enterprises are content with their tooling yet unconvinced it is winning the contest it exists to win. In a domain where the offense is also compounding with AI, an even race is not a comfortable place to be.

Finding 8: A security reshuffle is coming

Nearly six in 10 plan to adopt or switch tooling within a year

We asked whether enterprises plan to adopt a new, additional, or replacement agent security solution, and which they are considering. Few intend to stand pat.

The security stack is not settled. While 41% have no plans to change, a clear majority (59%) intend to adopt a new, additional, or replacement agent security solution within twelve months, and 29% within the next quarter — a strong signal that, high satisfaction notwithstanding, enterprises know the current stack is provisional. Incidents are what start the buying cycle.

Among organizations that have been hit, 42.1% plan to adopt, add, or replace agent security tooling within the next ninety days, against 14.0% of organizations with no incident — and after a confirmed incident it becomes majority behavior, at 52.6%. Getting hit also changes the threat assessment: 33.3% of hit organizations say AI-armed attackers are ahead of their defenses, against 8.0% of the unhit. Experience, in this data, is the strongest predictor of both urgency and pessimism.

The consideration set still leans provider-native (OpenAI 34%, Google 30%, Anthropic 29%, Azure 25%), but the dedicated security vendors — Cloudflare, Cisco, Palo Alto, Okta, Check Point’s Lakera — draw early interest in the mid-to-high single digits, more than their current footprint. 

What the shopping does not yet include is the identity layer specifically. Twelve percent of the respondents include an agent-identity product — Okta for AI Agents, Microsoft Entra Agent ID, or a non-human identity platform — anywhere in their consideration set, and among the credential-sharing organizations that have already had an incident, identity consideration is essentially unchanged, at roughly one in ten. The control most directly implicated by the incident data is the one largely missing from the purchase plans. Whether this wave hardens the provider-native default or finally opens the door to purpose-built agent security — the identity and isolation controls the incidents call for — is the question this series will keep tracking.

The bottom line: A security gap that autonomy will test first

Organizations with more than 100 employees are giving AI agents real reach into systems and data while securing them with controls built for something else. More than half have already had an incident or near-miss; only a third give every agent its own scoped identity, and most still share credentials; only three in ten isolate their highest-risk agents; and the stack doing this work is overwhelmingly borrowed from the model providers and hyperscalers rather than purpose-built for agents.

The uncomfortable pairing is confidence with exposure: satisfaction with the current tooling is among the highest in this series, yet spending is a thin slice of the security budget, only a third believe their defenses are ahead of AI-enabled attackers, and a clear majority are already planning to replace what they have. At 107 respondents in a single wave this is a directional read, skewed toward the mid-market — but the direction is clear: agent adoption is running ahead of agent security, and the controls that matter most when something fails — scoped identity and isolation — are the ones enterprises have built least. The agent security gap is not a coverage problem that a provider guardrail will close on its own; it is a problem of identity, isolation, and enforcement built for autonomous software. The open question for later waves is whether enterprises close it deliberately — or whether a confirmed incident closes it for them.

Based on survey responses from 107 qualified enterprise respondents (100+ employees), drawn from a single June 2026 wave. This is a directional read, not a precise measurement — the sample is self-selected and skews mid-market, so it's best read as the view from organizations actively standing up agent security rather than from the largest operators. Respondents are senior and buyer-credible (45% final decision-makers, 30% recommenders/influencers), spanning managers through the C-suite, and drawn primarily from Technology/Software, Manufacturing, Retail/E-commerce, and Healthcare/Life Sciences.

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Hallo, ich bin der Michi, willkommen zur vierten Ausgabe des HMX-6-Newsletters. Diese Woche erfahrt ihr, welche Grafikkarten wir in der HMX 6 verbauen. Außerdem verraten wir, warum Halo das Design der HMX 6 prägen wird. Außerdem reisen wir zurück ins Jahr 2012 zur Höllenmaschine 4, die mit vier Grafikprozessoren neue Maßstäbe beim Gaming setzte. Wenn ihr keine Ausgabe verpassen wollt, könnt ihr den Newsletter kostenlos abonnieren – aber vergesst nicht, die Anmeldung via E-Mail zu bestätigen. Viel Spaß beim Lesen!

Hier geht es direkt zum Gewinnspiel der HMX 6 im Gesamtwert von 40.000 Euro.

HMX 6: 2x RTX 5090 von ZOTAC GAMING und Halo-Design

Jetzt können wir endlich verraten, welche Grafikkarten in der HMX 6 stecken: Als primäre Gaming-Grafikkarte der HMX 6 ist die RTX 5090 AMP Extreme INFINITY gedacht, während wir parallel dazu die RTX 5090 ARCTICSTORM AIO für verlustfreie Skalierung verwenden, um Bildqualität und -wiederholrate in praktisch jedem Videospiel zu verbessern. Natürlich könnt ihr die gebündelte Kraft der zwei 5090 auch im kreativen Einsatz nutzen, etwa beim 3D-Rendering oder KI-Berechnungen. Hier findet ihr alle Informationen zu den zwei ZOTAC-Grafikkarten.

ZOTAC

Eigentlich wollten Kris und ich euch diese Woche schon den aktuellen Stand des Casecon im Halo-Design zeigen. Doch unserem Modder Stefan Ulrich fehlen noch diverse Materialien. Jetzt fahren wir wahrscheinlich nächste Woche, doch die Zeit drängt schon wieder, denn wir wollen ja auf die Gamescom mit der HMX 6.

Rückblick: Die Höllenmaschine 4 setzte technische und optische Maßstäbe

Neue Maßstäbe setzten wir 2012 auch bei der Vermarktung der Höllenmaschine 4 – zumindest für unsere Verhältnisse: vier aufwendig produzierte Teaser-Videos mit Engelchen und Teufelsdamen sowie Fritz als Padawan von Obi-Wan Michi. Das hat riesigen Spaß gemacht und uns als Team Hölle zusammengeschweißt – und war der Beginn einer wunderbaren Freundschaft.

PC-WELT

Technisch auf der Höhe der Zeit waren wir mit den beiden Grafikkarten ASUS GTX690-4GD5, die jeweils zwei 915 MHz schnelle Nvidia Geforce GTX 690 beherbergten. Vier Grafikprozessoren gleichzeitig waren damals absoluter Wahnsinn und sorgten regelmäßig für offene Münder. Dazu gab es den Sechskerner Intel Core i7-3960X, 64 GB RAM im Vierkanalmodus, mit der OCZ RevoDrive die erste PCIe-SSD in einer Höllenmaschine und mit 10 Terabyte natürlich auch wieder verrückt viel HDD-Speicherplatz.

Sein höllisch gutes Aussehen verdankt das Gehäuse den international bekannten Casemoddern Martin und Stefan Blass. Sie haben ins Cooler Master Cosmos II ein Sichtfenster gefräst und per Airbrush lodernde Flammen auf die beiden Flügeltüren gezaubert. ARGB war damals noch kein Thema, aber mit dem Multidimmer von Richter waren immerhin individuelle Farbtöne und -wechsel per IR-Fernbedienung möglich. Hier geht es zum liebevoll restaurierten Artikel zur Höllenmaschine 4 aus 2012.

Maus mit Noctua-Lüfter und Steam Machine im Praxis-Test

Diese Woche ist eine skurrile Mail in meinem Postfach gelandet: Pulsar und Noctua präsentieren stolz die Früchte ihrer Zusammenarbeit: die Feinmann F01 Noctua Edition, eine Gaming-Maus mit aktiver Belüftung der Handflächen. Ich bin gespannt, wer sich über kühlere Handflächen beim Zocken freut.

Noctua/Pulsar

Mein Kollege und Namensvetter Michael Crider hat sich die kostspielige (ab 1.039 Euro) Steam Machine gekauft und einem ausführlichen Praxistest unterzogen. Sein Fazit fällt allerdings ernüchternd aus: Ein günstiger Mini-PC mit selbst installiertem SteamOS bietet derzeit nahezu denselben Nutzen für deutlich weniger Geld.

Warum es ein Problem ist, dass in neuen Laptops alte CPUs zum Einsatz kommen, erklärt mein Kollege Mark Hachman.

Vielen Dank fürs Lesen!

ommende Woche besuchen Kris und ich endlich unseren Modder Stefan, der uns dann hoffentlich schon das fast fertige Tisch-PC-Gehäuse für die Build-Week präsentiert – immer optimistisch bleiben, denn langsam drängt die Zeit. Außerdem reisen wir zurück ins Jahr 2013 zur legendären Höllenmaschine 5 mit den vielen Totenköpfen. Wenn ihr nichts verpassen wollt, abonniert den kostenlosen HMX-6-Newsletter – und denkt daran, eure Anmeldung per E-Mail zu bestätigen. Ich freue mich schon auf nächste Woche – bis dann! Euer Michi.

According to OpenAI’s disclosure, the incident began during an internal evaluation of advanced cyber capabilities using GPT-5.6 Sol and a more capable pre-release model. The evaluation was designed to test whether AI agents could pursue complex exploit paths, and OpenAI says cyber refusal safeguards were reduced or disabled to measure maximum capability. Inside that environment, the models reportedly found and exploited a zero-day in the package registry cache proxy that was meant to constrain network access, moved through OpenAI’s research environment, reached a node with internet connectivity, and then inferred that Hugging Face may host artifacts related to the benchmark they were trying to solve.

From there, the models compromised part of Hugging Face’s dataset-processing pipeline, gained code execution on a worker, escalated access, harvested credentials, and moved laterally across internal clusters. Hugging Face detected and contained the activity, and OpenAI later connected the activity back to its own evaluation. Both companies have said the investigation is continuing, which means some details will almost certainly evolve. Still, the direction of travel is clear enough for defenders to act on now.

How did the OpenAI model evaluation reach Hugging Face?

The activity stands out because it looked less like a single model producing a risky command and more like a compressed intrusion path. Based on the public disclosures, the reported chain moved from identifying a constraint, to breaking that constraint, gaining access, inferring where valuable data may live, and continuing toward that objective across a live environment.

Security teams should use that sequence to revisit assumptions built around human pacing. Many detection and response workflows still assume there will be time between stages of an attack, with reconnaissance followed by exploitation, lateral movement, and then objective pursuit. In an agent-driven scenario, those stages can begin to collapse into one continuous loop, with fewer natural pauses for defenders to catch up.

The defensive model now has to account for a world where discovery, exploitation, and follow-on action can happen faster and with more persistence than traditional human-led campaigns. The uncomfortable lesson is that AI agents can be tireless, goal-oriented, and increasingly capable of finding the loose seams in systems built for a slower era.

The incident highlights the collapse of the traditional OODA (Observe-Orient-Decide-Act) loop. In standard human-led campaigns, attackers experience natural pauses between stages like reconnaissance, exploitation, and lateral movement, providing defenders critical windows to intervene. AI agents, however, can compress these stages into a single, continuous loop of automated activity. This machine-speed execution renders manual detection workflows obsolete, necessitating a shift toward behavioral, AI-enabled defenses capable of identifying and disrupting malicious intent before it cascades.

Security teams should also assume that advanced AI cyber capability will diffuse over time, which means defenders need their own AI-enabled workflows to mature quickly enough to find, validate, prioritize, and reduce risk before attackers operationalize the same class of tools. Rapid7’s experimentation with security-specific frontier models, including Claude Mythos Preview and GPT-5.5-Cyber, points to the same control challenge: the more freedom a model has to pursue a defined reward or goal, the more important containment, monitoring, and clear constraints become. Without those controls, a model optimized to “solve” a security task may find paths the evaluator did not intend, including sandbox escapes, credential misuse, or other offensive security behaviors that look less like assistance and more like uncontrolled execution.

Why AI evaluation environments need stronger containment

The incident raises practical questions about how frontier AI evaluations are designed and contained. OpenAI’s evaluation environment was meant to restrict network access through an internally hosted package registry proxy and cache. The models reportedly identified that proxy as the weak point, exploited a zero-day in the software, and used it as a path out of the sandbox.

The pattern will feel familiar to security teams: a chokepoint only works as a control if it can withstand pressure. Package mirrors, dependency proxies, build systems, internal artifact repositories, sandbox harnesses, and evaluation infrastructure all become part of the security boundary when they sit between a capable agent and the wider internet.

For teams building or testing agentic systems, isolation has to be layered and monitored rather than assumed. Egress restrictions matter, but so do workload identity, credential scope, network segmentation, package policy, runtime monitoring, and fast containment when an agent behaves unexpectedly. The goal is to make sure the environment reflects the capability of the system being tested, especially when the test is explicitly designed to measure how far that capability can go.

Why AI and ML pipelines are now software supply chain risk

The Hugging Face side of the incident is a reminder that AI and ML pipelines are part of the software supply chain. Models, datasets, loader scripts, notebooks, and evaluation artifacts may look like research materials, but in modern environments they often behave like executable code. Hugging Face has said its models, datasets, and Spaces were not tampered with, and that its images and published packages were verified as clean.

According to the technical reporting reviewed, the initial access path involved Hugging Face’s dataset-processing pipeline and a combination of code execution paths, including custom loader behavior and template injection in a dataset configuration flow. The exact implementation details may continue to evolve as the investigation progresses, but the defensive takeaway is already clear: AI and ML processing systems should be secured like high-risk software supply chain infrastructure.

Any system that automatically processes external datasets or model artifacts should be designed with hostile input in mind. Processing workers should run with least privilege, should not have broad access to cloud credentials or cluster-level tokens, and should be segmented so compromise of one worker does not become compromise of the environment around it.

Security teams should also hunt for early signs of intent drift inside ML workflows. Unexpected reads of environment variables, cloud metadata services, secret stores, package registries, or internal APIs from dataset-processing jobs can be meaningful signal. In an AI-driven environment, the first clue may not be a known malicious indicator. It may be a workload behaving with curiosity it should not have.

What AI guardrails mean for incident response

One of the most useful lessons for security teams came during the response, when Hugging Face’s responders reportedly needed to analyze logs containing exploit payloads, attacker commands, and command-and-control artifacts. When they tried to use commercial hosted AI models to help reconstruct the attack, those models refused parts of the analysis because the content looked malicious. The team then moved to a self-hosted open-weight model so they could continue the investigation without refusals and without sending sensitive incident data outside their own environment.

The practical issue here is guardrail asymmetry: attackers, rogue agents, or unrestricted systems may not respect usage policies, while defenders using hosted tools can be slowed by the same safety systems designed to prevent misuse. Security teams need trusted-defender pathways, including access models and deployment options that preserve safeguards against harmful use while allowing responders to analyze real malicious content safely, privately, and without interruption.

AI-assisted incident response also needs to be tested before an incident begins, especially if teams expect models to support triage, log analysis, malware review, or timeline reconstruction under pressure. Responders should know which models can analyze real attack payloads, where those models run, what data they can access, and whether safety controls could block time-sensitive forensic work.

What security teams should do about agentic AI risk

The practical response to this incident is preparation, with organizations treating AI agents as both powerful tools and potential attack surfaces when those agents can access code, credentials, infrastructure, datasets, or internal systems.

Security teams should apply familiar controls with more urgency across AI and ML environments: treat downloaded models, datasets, and loader scripts as untrusted code; enforce least privilege on AI and ML processing workers; prevent node-level compromise from becoming cluster-wide compromise; restrict access to cloud metadata endpoints and secrets; monitor unexpected outbound connections from AI-related workloads; and review whether evaluation environments have real containment or simply convenient isolation.

Detection logic needs to account for machine-speed activity. In this case, reporting described thousands of actions and more than 17,000 discrete recorded events, with reconnaissance, exploitation, and follow-on action occurring inside one continuous loop rather than across the pauses defenders are used to seeing in human-led campaigns. Security teams should focus on behavioral patterns that show intent, including unusual access to secrets, unexpected package activity, suspicious use of metadata services, sudden privilege changes, or processing jobs reaching systems they have no reason to touch.

As autonomous activity becomes faster and noisier, the bottleneck may shift from detecting that something happened to understanding what matters quickly enough to change the outcome. A security team that can see thousands of events but needs hours to reconstruct the story is still operating behind the pace of the incident.

How preemptive security helps reduce AI-driven risk

At Rapid7, our view is that this is where preemptive security becomes especially important. Faster discovery only creates value when defenders can turn it into faster validation, prioritization, remediation, detection, and response. The same principle applies to agentic AI risk. If AI accelerates how weaknesses are found and exploited, defenders need security operations that can act earlier with better context and more confidence.

That means connecting exposure management with detection and response, so teams understand which risks are exploitable, which assets matter most, what suspicious behavior is already present, and which actions will reduce risk fastest. It also means using AI carefully and practically, not as a replacement for security judgment, but as a way to reason across telemetry, reduce noise, support investigation, and help teams make decisions at the speed the threat environment now demands.

AI-enabled defense is becoming part of resilience planning, especially for organizations running critical systems or high-value digital infrastructure. The goal is to give defenders the speed, context, and consistency to operate inside the attacker’s decision cycle, without removing the judgment and accountability that effective security requires.

The OpenAI and Hugging Face incident will continue to generate debate as more details emerge, but defenders already have enough to work with. Agentic systems are beginning to test the seams between AI research, software supply chain security, cloud infrastructure, and incident response. The organizations best positioned for what comes next will be the ones making those seams visible, monitored, and resilient before the next incident puts them under pressure.

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