James Berthoty of Latio on why the endpoint is now the center of AI security, and why most of the real agent risk traces back to blind spots we already had.

I sit down with James Berthoty, who started Latio as an engineer frustrated by how hard it was to figure out what security tools actually did. That turned into a practitioner-focused, buyer-oriented analyst firm. We dig into Latio's second AI security market report. Last year the story was browsers and proxies. This year it's the endpoint, where coding agents now run with the permissions and credentials on developer laptops.

We get into what roughly 400 AI security startups are actually differentiating on and why runtime detection claims need hands-on testing. We also cover why James pushes back on the runtime-first narrative, where the new AI security budget is coming from, and how security leaders should narrow the vendor field before they ever take a demo.

In this episode:
● Why we are in the "pre-HTTPS era" of AI security, and how coding agents turned developer endpoints into the new pressure point
● Dedicated AI security budget jumping from 8% to 37% in a year, and how it flows out of AI governance
● What is already commoditized, and why intent-based runtime detection needs hands-on testing
● Agent blast radius, and why your agent shouldn't be able to drop the prod DB because you shouldn't be able to either
● Why recent AI safety incidents look more like misconfigurations than emergent behavior
● The next M&A wave as a fight over the laptop
● Anthropic's inference hooks, and why frontier labs likely won't absorb the security market
● MCPs and skills as a software supply chain problem with a new delivery mechanism

Chapters:
0:00 Intro
0:31 Why James started Latio
1:00 From browsers to the endpoint
8:15 Do you need a purpose-built AI security platform?
11:52 Where the AI security budget comes from
13:53 400 startups and testing runtime claims
19:28 Blast radius and runtime vs. posture
23:35 M&A and the fight over the endpoint
33:22 Inference hooks and frontier labs vs. vendors
36:03 MCPs, skills, and software supply chain
39:30 Advice for security leaders

Connect with James:
LinkedIn: https://www.linkedin.com/in/james-berthoty
Latio: https://www.latio.com/
AI Security Market Report: https://pulse.latio.tech/p/the-2026-latio-ai-security-market

Resilient Cyber: https://www.resilientcyber.io

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