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April 16, 2025

Introducing Version 2 of Darktrace’s Embedding Model for Investigation of Security Threats (DEMIST-2)

Learn how Darktrace’s DEMIST-2 embedding model delivers high-accuracy threat classification and detection across any environment, outperforming larger models with efficiency and precision.
Inside the SOC
Darktrace cyber analysts are world-class experts in threat intelligence, threat hunting and incident response, and provide 24/7 SOC support to thousands of Darktrace customers around the globe. Inside the SOC is exclusively authored by these experts, providing analysis of cyber incidents and threat trends, based on real-world experience in the field.
Written by
Margaret Cunningham, PhD
VP, Security & AI Strategy, Field CISO
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16
Apr 2025

DEMIST-2 is Darktrace’s latest embedding model, built to interpret and classify security data with precision. It performs highly specialized tasks and can be deployed in any environment. Unlike generative language models, DEMIST-2 focuses on providing reliable, high-accuracy detections for critical security use cases.

DEMIST-2 Core Capabilities:  

  • Enhances Cyber AI Analyst’s ability to triage and reason about security incidents by providing expert representation and classification of security data, and as a part of our broader multi-layered AI system
  • Classifies and interprets security data, in contrast to language models that generate unpredictable open-ended text responses  
  • Incorporates new innovations in language model development and architecture, optimized specifically for cybersecurity applications
  • Deployable across cloud, on-prem, and edge environments, DEMIST-2 delivers low-latency, high-accuracy results wherever it runs. It enables inference anywhere.

Cybersecurity is constantly evolving, but the need to build precise and reliable detections remains constant in the face of new and emerging threats. Darktrace’s Embedding Model for Investigation of Security Threats (DEMIST-2) addresses these critical needs and is designed to create stable, high-fidelity representations of security data while also serving as a powerful classifier. For security teams, this means faster, more accurate threat detection with reduced manual investigation. DEMIST-2's efficiency also reduces the need to invest in massive computational resources, enabling effective protection at scale without added complexity.  

As an embedding language model, DEMIST-2 classifies and creates meaning out of complex security data. This equips our Self-Learning AI with the insights to compare, correlate, and reason with consistency and precision. Classifications and embeddings power core capabilities across our products where accuracy is not optional, as a part of our multi-layered approach to AI architecture.

Perhaps most importantly, DEMIST-2 features a compact architecture that delivers analyst-level insights while meeting diverse deployment needs across cloud, on-prem, and edge environments. Trained on a mixture of general and domain-specific data and designed to support task specialization, DEMIST-2 provides privacy-preserving inference anywhere, while outperforming larger general-purpose models in key cybersecurity tasks.

This proprietary language model reflects Darktrace's ongoing commitment to continually innovate our AI solutions to meet the unique challenges of the security industry. We approach AI differently, integrating diverse insights to solve complex cybersecurity problems. DEMIST-2 shows that a refined, optimized, domain-specific language model can deliver outsized results in an efficient package. We are redefining possibilities for cybersecurity, but our methods transfer readily to other domains. We are eager to share our findings to accelerate innovation in the field.  

The evolution of DEMIST-2

Key concepts:  

  • Tokens: The smallest units processed by language models. Text is split into fragments based on frequency patterns allowing models to handle unfamiliar words efficiently
  • Low-Rank Adaptors (LoRA): Small, trainable components added to a model that allow it to specialize in new tasks without retraining the full system. These components learn task-specific behavior while the original foundation model remains unchanged. This approach enables multiple specializations to coexist, and work simultaneously, without drastically increasing processing and memory requirements.

Darktrace began using large language models in our products in 2022. DEMIST-2 reflects significant advancements in our continuous experimentation and adoption of innovations in the field to address the unique needs of the security industry.  

It is important to note that Darktrace uses a range of language models throughout its products, but each one is chosen for the task at hand. Many others in the artificial intelligence (AI) industry are focused on broad application of large language models (LLMs) for open-ended text generation tasks. Our research shows that using LLMs for classification and embedding offers better, more reliable, results for core security use cases. We’ve found that using LLMs for open-ended outputs can introduce uncertainty through inaccurate and unreliable responses, which is detrimental for environments where precision matters. Generative AI should not be applied to use cases, such as investigation and threat detection, where the results can deeply matter. Thoughtful application of generative AI capabilities, such as drafting decoy phishing emails or crafting non-consequential summaries are helpful but still require careful oversight.

Data is perhaps the most important factor for building language models. The data used to train DEMIST-2 balanced the need for general language understanding with security expertise. We used both publicly available and proprietary datasets.  Our proprietary dataset included privacy-preserving data such as URIs observed in customer alerts, anonymized at source to remove PII and gathered via the Call Home and aianalyst.darktrace.com services. For additional details, read our Technical Paper.  

DEMIST-2 is our way of addressing the unique challenges posed by security data. It recognizes that security data follows its own patterns that are distinct from natural language. For example, hostnames, HTTP headers, and certificate fields often appear in predictable ways, but not necessarily in a way that mirrors natural language. General-purpose LLMs tend to break down when used in these types of highly specialized domains. They struggle to interpret structure and context, fragmenting important patterns during tokenization in ways that can have a negative impact on performance.  

DEMIST-2 was built to understand the language and structure of security data using a custom tokenizer built around a security-specific vocabulary of over 16,000 words. This tokenizer allows the model to process inputs more accurately like encoded payloads, file paths, subdomain chains, and command-line arguments. These types of data are often misinterpreted by general-purpose models.  

When the tokenizer encounters unfamiliar or irregular input, it breaks the data into smaller pieces so it can still be processed. The ability to fall back to individual bytes is critical in cybersecurity contexts where novel or obfuscated content is common. This approach combines precision with flexibility, supporting specialized understanding with resilience in the face of unpredictable data.  

Along with our custom tokenizer, we made changes to support task specialization without increasing model size. To do this, DEMIST-2 uses LoRA . LoRA is a technique that integrates lightweight components with the base model to allow it to perform specific tasks while keeping memory requirements low. By using LoRA, our proprietary representation of security knowledge can be shared and reused as a starting point for more highly specialized models, for example, it takes a different type of specialization to understand hostnames versus to understand sensitive filenames. DEMIST-2 dynamically adapts to these needs and performs them with purpose.  

The result is that DEMIST-2 is like having a room of specialists working on difficult problems together, while sharing a basic core set of knowledge that does not need to be repeated or reintroduced to every situation. Sharing a consistent base model also improves its maintainability and allows efficient deployment across diverse environments without compromising speed or accuracy.  

Tokenization and task specialization represent only a portion of the updates we have made to our embedding model. In conjunction with the changes described above, DEMIST-2 integrates several updated modeling techniques that reduce latency and improve detections. To learn more about these details, our training data and methods, and a full write-up of our results, please read our scientific whitepaper.

DEMIST-2 in action

In this section, we highlight DEMIST-2's embeddings and performance. First, we show a visualization of how DEMIST-2 classifies and interprets hostnames, and second, we present its performance in a hostname classification task in comparison to other language models.  

Embeddings can often feel abstract, so let’s make them real. Figure 1 below is a 2D visualization of how DEMIST-2 classifies and understands hostnames. In reality, these hostnames exist across many more dimensions, capturing details like their relationships with other hostnames, usage patterns, and contextual data. The colors and positions in the diagram represent a simplified view of how DEMIST-2 organizes and interprets these hostnames, providing insights into their meaning and connections. Just like an experienced human analyst can quickly identify and group hostnames based on patterns and context, DEMIST-2 does the same at scale.  

DEMIST-2 visualization of hostname relationships from a large web dataset.
Figure 1: DEMIST-2 visualization of hostname relationships from a large web dataset.

Next, let’s zoom in on two distinct clusters that DEMIST-2 recognizes. One cluster represents small businesses (Figure 2) and the other, Russian and Polish sites with similar numerical formats (Figure 3). These clusters demonstrate how DEMIST-2 can identify specific groupings based on real-world attributes such as regional patterns in website structures, common formats used by small businesses, and other properties such as its understanding of how websites relate to each other on the internet.

Cluster of small businesses
Figure 2: Cluster of small businesses
Figure 3: Cluster of Russian and Polish sites with a similar numerical format

The previous figures provided a view of how DEMIST-2 works. Figure 4 highlights DEMIST-2’s performance in a security-related classification task. The chart shows how DEMIST-2, with just 95 million parameters, achieves nearly 94% accuracy—making it the highest-performing model in the chart, despite being the smallest. In comparison, the larger model with 278 million parameters achieves only about 89% accuracy, showing that size doesn’t always mean better performance. Small models don’t mean poor performance. For many security-related tasks, DEMIST-2 outperforms much larger models.

Hostname classification task performance comparison against comparable open source foundation models
Figure 4: Hostname classification task performance comparison against comparable open source foundation models

With these examples of DEMIST-2 in action, we’ve shown how it excels in embedding and classifying security data while delivering high performance on specialized security tasks.  

The DEMIST-2 advantage

DEMIST-2 was built for precision and reliability. Our primary goal was to create a high-performance model capable of tackling complex cybersecurity tasks. Optimizing for efficiency and scalability came second, but it is a natural outcome of our commitment to building a strong, effective solution that is available to security teams working across diverse environments. It is an enormous benefit that DEMIST-2 is orders of magnitude smaller than many general-purpose models. However, and much more importantly, it significantly outperforms models in its capabilities and accuracy on security tasks.  

Finding a product that fits into an environment’s unique constraints used to mean that some teams had to settle for less powerful or less performant products. With DEMIST-2, data can remain local to the environment, is entirely separate from the data of other customers, and can even operate in environments without network connectivity. The size of our model allows for flexible deployment options while at the same time providing measurable performance advantages for security-related tasks.  

As security threats continue to evolve, we believe that purpose-built AI systems like DEMIST-2 will be essential tools for defenders, combining the power of modern language modeling with the specificity and reliability that builds trust and partnership between security practitioners and AI systems.

Conclusion

DEMIST-2 has additional architectural and deployment updates that improve performance and stability. These innovations contribute to our ability to minimize model size and memory constraints and reflect our dedication to meeting the data handling and privacy needs of security environments. In addition, these choices reflect our dedication to responsible AI practices.

DEMIST-2 is available in Darktrace 6.3, along with a new DIGEST model that uses GNNs and RNNs to score and prioritize threats with expert-level precision.

[related-resource]

Want more details?

Read the full research paper to explore how DEMIST-2 was built, trained, and optimized to meet the unique challenges of cybersecurity

Inside the SOC
Darktrace cyber analysts are world-class experts in threat intelligence, threat hunting and incident response, and provide 24/7 SOC support to thousands of Darktrace customers around the globe. Inside the SOC is exclusively authored by these experts, providing analysis of cyber incidents and threat trends, based on real-world experience in the field.
Written by
Margaret Cunningham, PhD
VP, Security & AI Strategy, Field CISO

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December 23, 2025

How to Secure AI in the Enterprise: A Practical Framework for Models, Data, and Agents

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Introduction: Why securing AI is now a security priority

AI adoption is at the forefront of the digital movement in businesses, outpacing the rate at which IT and security professionals can set up governance models and security parameters. Adopting Generative AI chatbots, autonomous agents, and AI-enabled SaaS tools promises efficiency and speed but also introduces new forms of risk that traditional security controls were never designed to manage. For many organizations, the first challenge is not whether AI should be secured, but what “securing AI” actually means in practice. Is it about protecting models? Governing data? Monitoring outputs? Or controlling how AI agents behave once deployed?  

While demand for adoption increases, securing AI use in the enterprise is still an abstract concept to many and operationalizing its use goes far beyond just having visibility. Practitioners need to also consider how AI is sourced, built, deployed, used, and governed across the enterprise.

The goal for security teams: Implement a clear, lifecycle-based AI security framework. This blog will demonstrate the variety of AI use cases that should be considered when developing this framework and how to frame this conversation to non-technical audiences.  

What does “securing AI” actually mean?

Securing AI is often framed as an extension of existing security disciplines. In practice, this assumption can cause confusion.

Traditional security functions are built around relatively stable boundaries. Application security focuses on code and logic. Cloud security governs infrastructure and identity. Data security protects sensitive information at rest and in motion. Identity security controls who can access systems and services. Each function has clear ownership, established tooling, and well-understood failure modes.

AI does not fit neatly into any of these categories. An AI system is simultaneously:

  • An application that executes logic
  • A data processor that ingests and generates sensitive information
  • A decision-making layer that influences or automates actions
  • A dynamic system that changes behavior over time

As a result, the security risks introduced by AI cuts across multiple domains at once. A single AI interaction can involve identity misuse, data exposure, application logic abuse, and supply chain risk all within the same workflow. This is where the traditional lines between security functions begin to blur.

For example, a malicious prompt submitted by an authorized user is not a classic identity breach, yet it can trigger data leakage or unauthorized actions. An AI agent calling an external service may appear as legitimate application behavior, even as it violates data sovereignty or compliance requirements. AI-generated code may pass standard development checks while introducing subtle vulnerabilities or compromised dependencies.

In each case, no single security team “owns” the risk outright.

This is why securing AI cannot be reduced to model safety, governance policies, or perimeter controls alone. It requires a shared security lens that spans development, operations, data handling, and user interaction. Securing AI means understanding not just whether systems are accessed securely, but whether they are being used, trained, and allowed to act in ways that align with business intent and risk tolerance.

At its core, securing AI is about restoring clarity in environments where accountability can quickly blur. It is about knowing where AI exists, how it behaves, what it is allowed to do, and how its decisions affect the wider enterprise. Without this clarity, AI becomes a force multiplier for both productivity and risk.

The five categories of AI risk in the enterprise

A practical way to approach AI security is to organize risk around how AI is used and where it operates. The framework below defines five categories of AI risk, each aligned to a distinct layer of the enterprise AI ecosystem  

How to Secure AI in the Enterprise:

  • Defending against misuse and emergent behaviors
  • Monitoring and controlling AI in operation
  • Protecting AI development and infrastructure
  • Securing the AI supply chain
  • Strengthening readiness and oversight

Together, these categories provide a structured lens for understanding how AI risk manifests and where security teams should focus their efforts.

1. Defending against misuse and emergent AI behaviors

Generative AI systems and agents can be manipulated in ways that bypass traditional controls. Even when access is authorized, AI can be misused, repurposed, or influenced through carefully crafted prompts and interactions.

Key risks include:

  • Malicious prompt injection designed to coerce unwanted actions
  • Unauthorized or unintended use cases that bypass guardrails
  • Exposure of sensitive data through prompt histories
  • Hallucinated or malicious outputs that influence human behavior

Unlike traditional applications, AI systems can produce harmful outcomes without being explicitly compromised. Securing this layer requires monitoring intent, not just access. Security teams need visibility into how AI systems are being prompted, how outputs are consumed, and whether usage aligns with approved business purposes

2. Monitoring and controlling AI in operation

Once deployed, AI agents operate at machine speed and scale. They can initiate actions, exchange data, and interact with other systems with little human oversight. This makes runtime visibility critical.

Operational AI risks include:

  • Agents using permissions in unintended ways
  • Uncontrolled outbound connections to external services or agents
  • Loss of forensic visibility into ephemeral AI components
  • Non-compliant data transmission across jurisdictions

Securing AI in operation requires real-time monitoring of agent behavior, centralized control points such as AI gateways, and the ability to capture agent state for investigation. Without these capabilities, security teams may be blind to how AI systems behave once live, particularly in cloud-native or regulated environments.

3. Protecting AI development and infrastructure

Many AI risks are introduced long before deployment. Development pipelines, infrastructure configurations, and architectural decisions all influence the security posture of AI systems.

Common risks include:

  • Misconfigured permissions and guardrails
  • Insecure or overly complex agent architectures
  • Infrastructure-as-Code introducing silent misconfigurations
  • Vulnerabilities in AI-generated code and dependencies

AI-generated code adds a new dimension of risk, as hallucinated packages or insecure logic may be harder to detect and debug than human-written code. Securing AI development means applying security controls early, including static analysis, architectural review, and continuous configuration monitoring throughout the build process.

4. Securing the AI supply chain

AI supply chains are often opaque. Models, datasets, dependencies, and services may come from third parties with varying levels of transparency and assurance.

Key supply chain risks include:

  • Shadow AI tools used outside approved controls
  • External AI agents granted internal access
  • Suppliers applying AI to enterprise data without disclosure
  • Compromised models, training data, or dependencies

Securing the AI supply chain requires discovering where AI is used, validating the provenance and licensing of models and data, and assessing how suppliers process and protect enterprise information. Without this visibility, organizations risk data leakage, regulatory exposure, and downstream compromise through trusted integrations.

5. Strengthening readiness and oversight

Even with strong technical controls, AI security fails without governance, testing, and trained teams. AI introduces new incident scenarios that many security teams are not yet prepared to handle.

Oversight risks include:

  • Lack of meaningful AI risk reporting
  • Untested AI systems in production
  • Security teams untrained in AI-specific threats

Organizations need AI-aware reporting, red and purple team exercises that include AI systems, and ongoing training to build operational readiness. These capabilities ensure AI risks are understood, tested, and continuously improved, rather than discovered during a live incident.

Reframing AI security for the boardroom

AI security is not just a technical issue. It is a trust, accountability, and resilience issue. Boards want assurance that AI-driven decisions are reliable, explainable, and protected from tampering.

Effective communication with leadership focuses on:

  • Trust: confidence in data integrity, model behavior, and outputs
  • Accountability: clear ownership across teams and suppliers
  • Resilience: the ability to operate, audit, and adapt under attack or regulation

Mapping AI security efforts to recognized frameworks such as ISO/IEC 42001 and the NIST AI Risk Management Framework helps demonstrate maturity and aligns AI security with broader governance objectives.

Conclusion: Securing AI is a lifecycle challenge

The same characteristics that make AI transformative also make it difficult to secure. AI systems blur traditional boundaries between software, users, and decision-making, expanding the attack surface in subtle but significant ways.

Securing AI requires restoring clarity. Knowing where AI exists, how it behaves, who controls it, and how it is governed. A framework-based approach allows organizations to innovate with AI while maintaining trust, accountability, and control.

The journey to secure AI is ongoing, but it begins with understanding the risks across the full AI lifecycle and building security practices that evolve alongside the technology.

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About the author
Brittany Woodsmall
Product Marketing Manager, AI & Attack Surface

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December 22, 2025

The Year Ahead: AI Cybersecurity Trends to Watch in 2026

2026 cyber threat trendsDefault blog imageDefault blog image

Introduction: 2026 cyber trends

Each year, we ask some of our experts to step back from the day-to-day pace of incidents, vulnerabilities, and headlines to reflect on the forces reshaping the threat landscape. The goal is simple:  to identify and share the trends we believe will matter most in the year ahead, based on the real-world challenges our customers are facing, the technology and issues our R&D teams are exploring, and our observations of how both attackers and defenders are adapting.  

In 2025, we saw generative AI and early agentic systems moving from limited pilots into more widespread adoption across enterprises. Generative AI tools became embedded in SaaS products and enterprise workflows we rely on every day, AI agents gained more access to data and systems, and we saw glimpses of how threat actors can manipulate commercial AI models for attacks. At the same time, expanding cloud and SaaS ecosystems and the increasing use of automation continued to stretch traditional security assumptions.

Looking ahead to 2026, we’re already seeing the security of AI models, agents, and the identities that power them becoming a key point of tension – and opportunity -- for both attackers and defenders. Long-standing challenges and risks such as identity, trust, data integrity, and human decision-making will not disappear, but AI and automation will increase the speed and scale of the cyber risk.  

Here's what a few of our experts believe are the trends that will shape this next phase of cybersecurity, and the realities organizations should prepare for.  

Agentic AI is the next big insider risk

In 2026, organizations may experience their first large-scale security incidents driven by agentic AI behaving in unintended ways—not necessarily due to malicious intent, but because of how easily agents can be influenced. AI agents are designed to be helpful, lack judgment, and operate without understanding context or consequence. This makes them highly efficient—and highly pliable. Unlike human insiders, agentic systems do not need to be socially engineered, coerced, or bribed. They only need to be prompted creatively, misinterpret legitimate prompts, or be vulnerable to indirect prompt injection. Without strong controls around access, scope, and behavior, agents may over-share data, misroute communications, or take actions that introduce real business risk. Securing AI adoption will increasingly depend on treating agents as first-class identities—monitored, constrained, and evaluated based on behavior, not intent.

-- Nicole Carignan, SVP of Security & AI Strategy

Prompt Injection moves from theory to front-page breach

We’ll see the first major story of an indirect prompt injection attack against companies adopting AI either through an accessible chatbot or an agentic system ingesting a hidden prompt. In practice, this may result in unauthorized data exposure or unintended malicious behavior by AI systems, such as over-sharing information, misrouting communications, or acting outside their intended scope. Recent attention on this risk—particularly in the context of AI-powered browsers and additional safety layers being introduced to guide agent behavior—highlights a growing industry awareness of the challenge.  

-- Collin Chapleau, Senior Director of Security & AI Strategy

Humans are even more outpaced, but not broken

When it comes to cyber, people aren’t failing; the system is moving faster than they can. Attackers exploit the gap between human judgment and machine-speed operations. The rise of deepfakes and emotion-driven scams that we’ve seen in the last few years reduce our ability to spot the familiar human cues we’ve been taught to look out for. Fraud now spans social platforms, encrypted chat, and instant payments in minutes. Expecting humans to be the last line of defense is unrealistic.

Defense must assume human fallibility and design accordingly. Automated provenance checks, cryptographic signatures, and dual-channel verification should precede human judgment. Training still matters, but it cannot close the gap alone. In the year ahead, we need to see more of a focus on partnership: systems that absorb risk so humans make decisions in context, not under pressure.

-- Margaret Cunningham, VP of Security & AI Strategy

AI removes the attacker bottleneck—smaller organizations feel the impact

One factor that is currently preventing more companies from breaches is a bottleneck on the attacker side: there’s not enough human hacker capital. The number of human hands on a keyboard is a rate-determining factor in the threat landscape. Further advancements of AI and automation will continue to open that bottleneck. We are already seeing that. The ostrich approach of hoping that one’s own company is too obscure to be noticed by attackers will no longer work as attacker capacity increases.  

-- Max Heinemeyer, Global Field CISO

SaaS platforms become the preferred supply chain target

Attackers have learned a simple lesson: compromising SaaS platforms can have big payouts. As a result, we’ll see more targeting of commercial off-the-shelf SaaS providers, which are often highly trusted and deeply integrated into business environments. Some of these attacks may involve software with unfamiliar brand names, but their downstream impact will be significant. In 2026, expect more breaches where attackers leverage valid credentials, APIs, or misconfigurations to bypass traditional defenses entirely.

-- Nathaniel Jones, VP of Security & AI Strategy

Increased commercialization of generative AI and AI assistants in cyber attacks

One trend we’re watching closely for 2026 is the commercialization of AI-assisted cybercrime. For example, cybercrime prompt playbooks sold on the dark web—essentially copy-and-paste frameworks that show attackers how to misuse or jailbreak AI models. It’s an evolution of what we saw in 2025, where AI lowered the barrier to entry. In 2026, those techniques become productized, scalable, and much easier to reuse.  

-- Toby Lewis, Global Head of Threat Analysis

Conclusion

Taken together, these trends underscore that the core challenges of cybersecurity are not changing dramatically -- identity, trust, data, and human decision-making still sit at the core of most incidents. What is changing quickly is the environment in which these challenges play out. AI and automation are accelerating everything: how quickly attackers can scale, how widely risk is distributed, and how easily unintended behavior can create real impact. And as technology like cloud services and SaaS platforms become even more deeply integrated into businesses, the potential attack surface continues to expand.  

Predictions are not guarantees. But the patterns emerging today suggest that 2026 will be a year where securing AI becomes inseparable from securing the business itself. The organizations that prepare now—by understanding how AI is used, how it behaves, and how it can be misused—will be best positioned to adopt these technologies with confidence in the year ahead.

Learn more about how to secure AI adoption in the enterprise without compromise by registering to join our live launch webinar on February 3, 2026.  

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