DDOG · Earnings call · 2026Q2T · Full report

AI Security Strategy

Datadog, Inc. · 2026-08-06 · Importance 31 · Surprise 42

Datadog is repositioning security around integrated, near-real-time controls that can use AI agents to resolve issues and prevent attacks without waiting for human review. The company is integrating observability data directly into security agents and developing protections for AI agents, coding agents, malicious packages, and other emerging AI-powered attacks. Management said new classes of AI security issues are appearing nearly every week and that the opportunity aligns with Datadog's integrated observability and security platform.

Key facts

• Launched AI Guard agent discovery, AI Guard for custom agents, AI Guard for coding agents, Runtime Prioritization Engine to cut vulnerability noise by over 95%, and expanded Bits Security Analyst to run on non-Datadog SIEMs
• Datadog is taking moves towards evolving Bits into a broader AI SOC automation platform.
• Datadog built the SIEM first, built the agent into the SIEM (Bits AI Security Analyst), and has separated the agent from the SIEM so customers can use it with other SIEMs.