Why Startups Are Quietly Ditching the “AI” Label in Cybersecurity

The Real Reason New Cybersecurity Startups Are Avoiding the AI Buzzword

As artificial intelligence dominates headlines, you might expect every cybersecurity startup to proudly flaunt AI as a key differentiator. Surprisingly, the opposite is happening. Instead of leading with flashy AI claims, startups are increasingly shifting focus to solving specific pain points for CISOs (Chief Information Security Officers), streamlining threat management, and delivering practical solutions that enhance existing infrastructure.

At Infosecurity Europe, a growing number of vendors are rejecting the AI hype in favor of terms like automation, visibility, and intelligent response. These startups are choosing to emphasize tangible outcomes over tech jargon, aiming to bridge the growing gap between security needs and real-world capability.

This article dives into why these strategic shifts matter—and what it signals for the cybersecurity industry’s future.

Startups Turning Away from AI: A Strategic Rebrand to Win Trust

In the competitive landscape of cybersecurity, newer companies are finding that labeling their products as “AI-driven” may actually hurt their credibility with seasoned enterprise clients and investors. Rather than leading with AI, startups are now focusing on real, measurable value—such as enhancing operational visibility, automating threat response, and streamlining governance, risk, and compliance (GRC).

Cytidel, for example, emphasizes automation rather than AI. CEO Matt Conlon explains that while AI is used behind the scenes, the company’s messaging revolves around tangible solutions like faster response to cyber threats and maximizing existing infrastructure. According to Conlon, attackers now move from vulnerability discovery to exploitation in just 24 hours, down from 30 days. That means companies need tools that act in real time—not just promising intelligence, but delivering it.

RMI Cyber follows a similar philosophy, combining asset mapping, threat intelligence, and vulnerability scanning with a human-centric approach to cybersecurity. Simon Woods, the company’s CEO, believes clients care more about making intelligent decisions than they do about flashy buzzwords.

Other startups like Nagomi Cyber and Commugen focus on optimizing existing tools and increasing visibility. Nagomi claims 70% of data breaches could be prevented simply by using current tools more effectively—a mission they strive to support by offering better data integration and automation.

Despite innovation, newcomers face serious headwinds from well-established players. Larger vendors are preferred by risk-averse enterprises due to their maturity and certifications, especially in heavily regulated sectors. According to Dr. Andrea Isoni from AI Technologies, startups must deliver significantly better results than incumbents to even be considered. Howard Holton from GigaOm adds that while traditional firms dominate large enterprise markets, smaller or modernized organizations may benefit more from the agility of startups.

Peter Garraghan of Mindgard, a company focused on AI application security, warns against confusing maturity with effectiveness. Large vendors are often slow to adapt to new threats, creating room for startups to shine with speed, precision, and adaptability.

There’s also a financial incentive. Early adopters of emerging solutions can benefit from lower costs, custom features, and better vendor collaboration. However, this flexibility may come at the cost of compliance issues in regulated industries, where new tech might not meet certification requirements.

What Undercode Say:

Startups shedding the AI label isn’t about rejecting technology—it’s about building trust and relevance in a skeptical market. The cybersecurity space is saturated with overpromises tied to AI, many of which fall short under scrutiny. CISOs, now more than ever, want clarity, control, and measurable outcomes—not just futuristic slogans.

By focusing on automation, asset management, threat visibility, and operational streamlining, these startups are speaking a language enterprises understand: risk mitigation and ROI. While AI might still be embedded within the product stack, it’s the results that take center stage.

What these startups recognize is that enterprise buyers don’t care how flashy your algorithm is if it doesn’t plug seamlessly into their existing environment. And in cybersecurity, integration often matters more than innovation.

Furthermore, the startup mindset is enabling solutions born out of modern challenges—APIs, machine-to-machine identities, deepfake detection, and no-code GRC. These tools are faster to deploy, easier to customize, and more reactive to evolving threats.

The established players, with their scale and compliance readiness, are still dominant in industries like finance or healthcare. But for leaner companies or digitally native firms, the agility of startups is proving invaluable. They’re filling the gaps that legacy vendors are too slow or too rigid to address.

Interestingly, the pivot away from AI isn’t a denial of its usefulness but a marketing recalibration. It’s easier to earn a CISO’s trust by demonstrating faster patch response or actionable threat intel than by shouting “AI-powered” from the rooftops. This restraint in branding suggests a maturity in go-to-market strategy—and positions startups more favorably when competing for procurement deals.

The reality is, AI is now table stakes. What matters is how it’s applied, how fast it operates, and how well it plays with other tools. The startups profiled—Cytidel, RMI Cyber, Nagomi Cyber, and others—understand this deeply.

As cyber threats continue evolving in speed and complexity, the market will reward vendors who solve specific problems efficiently. The future may belong not to the AI braggarts, but to the silent innovators who deliver on their promises.

Fact Checker Results: ✅

✔ Many cybersecurity startups are indeed avoiding overt use of the AI label in branding
✔ Enterprises prefer demonstrable outcomes over generic AI claims
✔ CISOs prioritize tools that integrate with existing systems and reduce response times 🔐

Prediction:

In the next 12 to 24 months, expect to see a greater shift in cybersecurity startup marketing—from AI-centric buzzwords to value-focused, integration-ready solutions. Startups that can prove real-time efficiency, cost savings, and measurable risk reduction without overwhelming clients with complexity will gain traction. The AI will still be there—but quietly powering results, not headlines.