September 10, 2025

AI Security Business Narrative

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Buchi Reddy B

CEO & Founder at LEVO

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Levo AI Security Research Panel

Research Team

AI Security Business Narrative

A practical narrative that connects AI risk, controls, and value so leaders can fund, ship, and scale AI with confidence.

TL;DR

  • Treat Security for AI and AI for Security as separate programs that share one evidence bus and evaluation packs
  • Put policy at the boundary, route every model or agent call through a gateway with input and output policy, schema checks, budgets, approvals, and trace export
  • Prove provenance for training and retrieval, sign corpora and indexes, attach source IDs, run takedown workflows
  • Make schema first outputs and deny by default the paved road, malformed outputs never reach effectful tools
  • Run continuous assurance, evals in CI and on shadow traffic, weekly safety scorecard, and replayable evidence for audits

Why AI Security Now

AI moved from experiments to production inside customer support, engineering, search, and automation. Inputs can carry hidden instructions, outputs can trigger tools, and small errors can scale across workflows. The business goal is to reduce surprise, keep cost predictable, and maintain an audit trail that allows fast rollback and learning.

The shift in 2025

  • From single model calls to routed systems with gateways, toolchains, and agents
  • From static content to live retrieval where source trust and licensing matter
  • From best effort QA to continuous evaluation with adversarial packs and safety scorecards

The Business Problem

  • Security gaps show up at the boundary between model text and effectful tools
  • Provenance is weak, which creates legal and brand risk when content or data is disputed
  • Manual reviews do not scale, teams need automated gates inside the CI and CD path
  • Costs spike when prompts loop or when retrieval drifts, finance lacks control levers

The Business Opportunity

  • Faster time to value by giving teams a paved road with gateway policy, schemas, and replay
  • Lower risk through signed sources, typed adapters, sandboxed tools, and human in the loop on high impact actions
  • Better unit economics with routing, caching, context budgets, and per tenant controls
  • Stronger governance with exportable evidence bundles that satisfy boards and regulators

Outcomes That Matter

  • Coverage and posture, routes behind gateway, schema coverage, signed corpora share
  • Quality and safety, injection block rate, schema pass rate, grounding score, never event count
  • Cost and performance, cost per task, tokens per request, cache hit rate, loop abort rate, latency SLO
  • Operations and resilience, MTTR, rollback time, drift to quarantine time, incident drill pass rate
  • Compliance and audit, evidence completeness, obligations on track, findings closed on time

What Good Looks Like

Product principles

  • Policy at boundary across apps, agents, gateways, and tools
  • Schema first outputs for every path, including free text responses
  • Least privilege and time bound credentials for tools and data
  • Signed data and retrieval provenance with visible source IDs

Operating guardrails

  • Budgets and loop caps per session and tenant
  • Sandboxed tools with allow listed egress
  • Approvals for effectful actions with artifacts in the evidence trail
  • OpenTelemetry or JSON traces to SIEM and GRC

Evidence and assurance

  • Evaluations in PR and nightly jobs, adversarial packs for injection, leakage, grounding, and structure
  • Weekly safety scorecard reviewed by product and security leaders
  • Replay any session within minutes with prompts, plans, schemas, approvals, and results

Stakeholder Value Stories

CISO

  • Reduce never events and audit exposure with gateway coverage, schemas, and evidence bundles
  • Land policy once, inherit it across teams, vendors, and models

CIO and CTO

  • Ship AI safely without slowing delivery by using paved roads and automated gates
  • Keep total cost predictable with budgets, routing, and caching

Chief Product Officer

  • Accelerate feature delivery with reusable adapters and typed tool contracts
  • Improve reliability with schema checks and safe fallbacks

Data and AI Leaders

  • Track license and consent with signed corpora and index manifests
  • Improve grounding and faithfulness through continuous evaluation

Legal and Compliance

  • Prove sources and decisions with exportable evidence, respond fast to takedowns
  • Meet regional duties using a minimum evidence bundle and lifecycle gates

CFO

  • Tie spend to outcomes with a scorecard and a two week ROI test on a pilot route
  • Lower run cost with cache and context budgets without hurting quality

Economic Model

  • Cost levers, routing by confidence, cache hot paths, limit context, tier logs, right size models per task
  • Risk levers, schema strictness by tier, approvals for high impact tools, isolation for sensitive tasks
  • ROI method, select one route, enable gateway, schemas, routing, caching, and budgets, measure cost per task, pass rates, block rates, and replay time before and after

Risk And Governance

Minimum evidence bundle

  • SBOM M for models, datasets, tools, and plugins
  • Signed data and index manifests with license and consent
  • Gateway policy snapshots, router rules, prompts, schemas, tool scopes, human in the loop criteria
  • Evaluation results, red team findings, exports to SIEM and GRC

Lifecycle gates

  1. Gate 2, evals stable and red team plan approved
  2. Gate 3, evidence bundle v1, policy snapshots, signed corpora, human in the loop configs, rollback plan, no critical regressions
  3. Gate 4, safety scorecard weekly, drift and cost dashboards live, quarterly evidence refresh for the board

One Year Plan

0 to 30 days

  • Land gateway and schema checks on one pilot route
  • Put prompts, policies, retrieval configs under PR based change control
  • Turn on approvals for effectful actions, schedule first AI specific tabletop

31 to 90 days

  • Wire OpenTelemetry to SIEM and GRC, publish weekly safety scorecard
  • Roll agent tiers and human in the loop for one effectful use case
  • Close SOWs with evidence and exit clauses

90 to 180 days

  • Expand signed corpora and takedown workflows
  • Broaden eval coverage and red team packs
  • Stand up monthly program reviews

180 to 365 days

  • Increase coverage to near full behind the gateway
  • Make evidence bundles routine
  • Tighten cost SLOs with routing and caching while raising grounding targets

Competitive Signals To Watch

  • Detection only products that stop at dashboards versus runtime first platforms with policy and schemas in line
  • Gateway only controls versus agent aware control across toolchains and sandboxes
  • Black box routes that hide sources versus signed provenance and replayable evidence

Conclusion

AI security should make teams faster and safer at the same time. Fund the paved road first, gateway plus schemas plus provenance. Run continuous evaluation, publish a safety scorecard, and keep a complete evidence trail. When you can replay any action, prove sources, and roll back quickly, AI becomes an asset that scales with confidence.

FAQs

What is the fastest way to start without breaking things

Begin with one pilot route behind a gateway, add schema checks, set budgets and loop caps, export traces, and measure cost per task and pass rates before and after.

How do we prove that outputs are grounded in trusted sources

Sign corpora and indexes, attach source IDs to retrieved context, log them with each run, and evaluate grounding and faithfulness in CI and in production on shadow traffic.

Where do most incidents actually happen

At the boundary where model outputs drive tools, fix this with typed adapters, schema validation, sandboxed tools, and approvals for effectful actions.

How do we control costs without losing quality

Use routing, caching, and context budgets, right size models per task, and track a cost per task metric on the weekly safety scorecard.

How do we pass audits and meet regional rules

Keep a minimum evidence bundle for each workload, run lifecycle gates, and export traces and policy snapshots to SIEM and GRC so auditors see sources, decisions, and outcomes.

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