AI companies need usage data to align pricing with costs, improve products, identify churn risks, and grow revenue through informed decisions. The AI Paradox There is a paradox: AI companies exist to extract intelligence from data, yet many have almost no visibility into how their own software is being used. They design complex models, introduce their product, set a price, and then hope that customers renew their contracts. In a space as fast-paced as AI, such a strategy is no longer safe. Without usage as a guide, price decisions are made on assumptions rather than facts. Product roadmaps are driven by story, not by usage. Customer success teams learn about customer churn when renewal dates are approaching. In reality, usage intelligence has become one of the most important signals in an AI business, guiding everything from pricing strategy to product development and long-term monetization. Why AI Changes the Stakes for Usage Data AI changes the economics of software and, with it, the relevance of usage visibility. The economics of existing software products are linear in cost, whereas those of AI products are not. Compute, energy consumption, as well as third-party model licenses, can all be material variable costs. If usage increases rapidly (through enterprise adoption, agents, or workflows), the cost can grow faster than the revenue generated if pricing is not aligned with consumption. The opposite scenario is just as dangerous. If customers are not using key capabilities, churn may be approaching long before a renewal conversation begins. Research shows the extent of this visibility gap. For AI vendors, visibility is important on the commercial side, too. They need to know how customers are using the AI capabilities they sell. IDC research found that 48% of software buyers want better visibility into their usage. The pace of change is also a concern, with 70% ranking rapid change in the AI ecosystem among their top three AI-related security risks. Pricing, packaging, and business models must evolve at the same pace, and that requires reliable usage intelligence. What Usage Intelligence Actually Looks Like Of all the capabilities that make up a software monetization strategy, usage intelligence is the one most commonly treated as optional — and the one that most consistently separates companies that adapt from those that don’t. It is the feedback loop that connects real-world product consumption back to the decisions that shape pricing, packaging, and product direction. At the instrumentation layer, usage intelligence starts with telemetry data. This includes activation events, entitlements consumed, feature-level data, daily and monthly active users, and time-to-value metrics that track how quickly customers get value from the product. Thales Sentinel can also collect usage data from on-premises, offline, and disconnected environments, so vendors are not limited to tracking always-connected software. The operational layer is where all the telemetry data is made actionable. Usage dashboards in CRM systems enable account teams to see how customers use the software. Health scores can even detect reduced engagement well before any risk of renewal is seen. The enforcement layer makes sure that usage is consistent with contract rights. This is particularly important for consumption-based or token-based pricing schemes. Tracking accuracy is essential for determining customer fairness and vendor revenue. Finally, there is the feedback loop. The insights from usage need to flow back to those responsible for pricing, packaging, product development, and customer success. Without the feedback loop, the data is just more information. Pricing specialists have long argued for incremental experimentation. Research from Simon-Kucher reveals that companies that make frequent, data-informed pricing adjustments tend to achieve stronger growth than those that depend on static pricing models. Usage intelligence provides the evidence required to make those adjustments with confidence. How Usage Data Enables Multiple Business Models Business model agility is increasingly becoming a competitive advantage for AI companies, yet flexible business models cannot exist without trustworthy usage data beneath them. Consumption-based pricing, outcome-based pricing, token models, and hybrid subscription structures all depend on accurate measurement of how customers use the product. There is demand for these models, too. IDC research found that 45% of software buyers prefer usage-based models. In practice, most AI companies adopt a gradual sequence. They begin with subscription licensing to establish predictable recurring revenue. As adoption grows, they instrument feature usage and engagement patterns. That data then enables the introduction of consumption or token-based layers tied to high-value AI capabilities. One AI audio-recognition company did just that. It moved from perpetual licensing to several subscription tiers using Thales Sentinel. Its usage data showed which features customers used most, which helped the company decide how to structure those tiers without making changes to the core technology. Another AI recognition vendor delivering SDKs for embedded systems took a different approach using Sentinel. Their trial licenses expire after a defined number of executions instead of after a fixed time period. This usage-based trial model demonstrates genuine customer interest, giving them a clearer indicator of product-market fit than a simple time-limited evaluation would. Both examples show that usage intelligence transforms monetization strategies from guesswork into evidence-based decision-making. From Data to Decision: Three Practical Applications The real value of usage intelligence lies in informing concrete business decisions. Preventing churn is one of the most immediate uses. Feature-level engagement metrics can detect declining usage several months before a renewal date. This enables customer success teams to step in and show the value or introduce underutilized features, preventing a customer from leaving. Upsell and expansion opportunities can also show up in the usage data. Seat utilization may show that a team is close to capacity and needs more licenses. Feature usage can show when a customer is getting enough value from certain capabilities to justify moving to a higher tier or adding consumption-based features. Usage data can also inform the product roadmap. Rather than relying on assumptions about what customers want, AI companies can see which features people use and which get little attention. This is key in a market full of similar AI capabilities. Companies need to know which parts of their product customers value and are willing to pay for. There is also a need for the collection of usage intelligence to be privacy-conscious. For vendors operating under frameworks such as GDPR or the EU’s AI Act, it is necessary to design telemetry systems that prioritize aggregated data collection over personal data collection whenever possible. The Organizational Challenge However, technology alone is not enough to create usage intelligence. Businesses must also ensure that the intelligence is available to those who can act on it. Usage intelligence only delivers value if it reaches the people who can act on it. Pricing teams need consumption data to make confident adjustments to their models. Product teams need feature engagement data to inform roadmap decisions rather than rely on assumptions. Sales teams need account-level signals to time their conversations correctly. Customer success teams need early warning indicators to intervene before disengagement becomes churn. Finance teams need usage trends to build credible revenue forecasts. Getting that data to all of those functions consistently and in a usable form requires intentional data architecture and a shared organizational commitment to treating monetization as a cross-functional capability rather than a single team’s responsibility. This becomes harder as companies add more AI products. If usage data is split across separate products, teams may struggle to see how a customer is using the wider portfolio. Bringing the data together can show where products are being heavily used, where adoption is low, and where there may be room to expand an account. Building Systems Around Innovation The AI companies that sustain long-term commercial success are the ones who built a system around it that can learn, adapt, and improve as markets shift and customer needs evolve. Usage intelligence is what makes that system adaptive. Without it, pricing decisions are made on assumptions, packaging tiers are defined by intuition, and churn arrives without warning. With it, every commercial decision — what to charge, how to package, what to build next, which customers need attention — is grounded in evidence rather than expectation. In an industry defined by rapid innovation, the AI companies that listen to their own usage data will be the ones best positioned to turn experimentation into sustainable growth. About the Author: Kirsten Doyle has been in the technology journalism and editing space for nearly 24 years, during which time she has developed a great love for all aspects of technology, as well as words themselves. Her experience spans B2B tech, with a lot of focus on cybersecurity, cloud, enterprise, digital transformation, and data centre. Her specialties are in news, thought leadership, features, white papers, and PR writing, and she is an experienced editor for both print and online publications. She is also a regular writer at Bora. Follow me on Twitter: @securityaffairs and Facebook and Mastodon Pierluigi Paganini (SecurityAffairs – hacking, artificial intelligence)
Between November 2025 and March 2026, the Dutch security firm Eye Security pushed more than 2 million updates to computers it did not own to switch off a background updater that it said could have allowed an outsider to take over the machine. The updater belongs to Time4Popcorn, an abandoned copy of Popcorn Time, a free app that streamed pirated films and TV over BitTorrent. Popcorn Time was
American clinical laboratory company Quest Diagnostics disclosed that patient records have been exposed after a threat actor gained unauthorized access to its Quanum LSM system. The company learned about the breach on October 21 and deployed its incident response protocol "to contain the activity, assess and investigate the nature and scope of the incident and implement appropriate remedial measures." “On October 21, 2026, Quest Diagnostics Incorporated learned of unauthorized access to its Quanum LSM system, which certain clients use to place test orders, receive and look up results,” the company says in a filing with the U.S. Securities and Exchange Commission (SEC). Quest Diagnostics is a major clinical laboratory company in the United States, providing diagnostic testing and services for a wide range of medical conditions.
Cybersecurity researchers have disclosed details of a large-scale campaign that has targeted exposed network edge devices such as Fortinet FortiGate and Palo Alto Networks GlobalProtect firewalls. "Artifacts from this investigation also indicate that operators in this campaign have obtained access to numerous organizations worldwide, and have attempted to further compromise some victims,
PHP2Shell attacks have surged into the millions, but no successful exploitation is confirmed. Patch it immediately. On October 21, PHP released emergency patches for two critical vulnerabilities tracked as CVE-2026-109618 and CVE-2026-109619 (CVSS score of 9.2), affecting every PHP version that handles web requests. The bug code dates back to PHP 5.4 from 2012, lives in the PHP engine itself rather than in any application, and allows unauthenticated remote code execution via crafted HTTP requests. Cloudflare researchers observed tens of thousands of exploit attempts within 45 minutes of public disclosure, hundreds of thousands within two hours, and millions by October 22. Some stats on #php2shell. In the 10 hours before it was publicly announced, across the @Cloudflare network we saw thousands of attempts to exploit it. That jumped to tens of thousands in the 45 minutes post announcement, hundreds of thousands within 2 hours, and millions now. — Matthew Prince (@eastdakota) October 22, 2026 As of October 23, Censys counts over 34.4 million PHP services still running vulnerable versions. Governments, hospitals, and schools across Asia, Europe, and North America have preemptively taken services offline rather than wait. Below is an image showing the hosts potentially vulnerable to CVE-2026-109618 and/or CVE-2026-109619. Source Censys Security firms using honeypots report the same pattern: attackers are scanning many servers and trying to exploit the PHP flaws, but no successful remote code execution has been confirmed in real-world attacks. Sophos says this suggests that attackers are also struggling to exploit the vulnerabilities. Even its own security team needed more effort than expected, despite using AI, to develop a working exploit. However, the risk is growing. VulnCheck researchers have developed an exploit that bypasses ASLR, a security feature that randomizes where code is stored in memory. By combining both vulnerabilities, they can use a memory leak to bypass this protection and run code on the target system. The exploit works, even though there is no evidence of widespread use yet. The attempts that have been caught so far are mostly scanning, fingerprinting, and botnet delivery attempts. Cowrai’s analysis of PHP2Shell traffic in the wild found connections to a Mirai variant called Potassium, which contacts a C2 server, checks for an HTTP 200 response, then downloads a Linux executable as a follow-on payload. “The payload, a likely Mirai botnet variant known as Potassium, was not delivered since the exploitation attempt was unsuccessful due to being blocked by Sophos countermeasures.” states the report published by Sophos. “However, analysis of the sample revealed that is an updated and significantly expanded version of the Mirai-derived botnet variant identified in early 2026.” The malware can download additional files and disrupt networks. It contacts a hard-coded command-and-control server, checks that the server responds successfully, and downloads a file designed to run on Linux. If normal address lookup fails, it can use public DNS servers such as Google DNS and Cloudflare DNS. Like other Mirai malware, it can also launch distributed denial-of-service (DDoS) attacks. Arctic Wolf found that both malware samples had Ethereum Name Service (ENS) resolution disabled, meaning the feature was available but not active. “ENS resolution was disabled in both samples, indicating that the capability was present but inactive.” states Arctic Wolf. “If enabled in future variants, it could complicate disruption by reducing reliance on registrars and DNS providers, requiring defenders to block the ENS names, RPC infrastructure, and resolved command-and-control addresses.” The botnet’s developers have already added the ability to use ENS to find command-and-control (C2) servers. This could help them keep their infrastructure online and make it harder for authorities to take down their domains, but the feature has not yet been enabled. Sophos blocked the attempted Potassium delivery before it succeeded. But analysis of the sample itself showed it’s a significantly expanded version of the Mirai variant spotted earlier in 2026, with added DDoS capabilities and fallback DNS resolution using public servers like 8.8.8.8 and 1.1.1.1 hardcoded as backup. PHP2Shell is being compared to Log4Shell because it affects a huge number of systems. The flaw is in PHP itself, so it can affect websites, content management systems and shared hosting services. Even a basic WordPress site with no extra plugins is at risk if it uses a vulnerable PHP version. Fixes are available in PHP versions 8.2.35, 8.3.36, 8.4.27 and 8.5.12. Older versions, including 7.4, 8.0 and 8.1, need fixes provided by their software distributors or an upgrade to a supported version. Cisco Talos notes that scanning for flaws and using public exploit code is easier than building attacks into custom tools. Advanced attackers may still be developing those tools, so administrators should use this time to patch vulnerable systems. “The true impact of this vulnerability will take time to evaluate.” concludes Talos. “These types of vulnerabilities that impact core technologies tend to cascade into other platforms and applications as they evaluate impact and provide associated patching, harkening back to the waves of exploitation that we saw after Log4J.” Follow me on Twitter: @securityaffairs and Facebook and Mastodon Pierluigi Paganini (SecurityAffairs – hacking, PHP2Shell)
AI agents paying for API calls with the x402 SDKs could sign a payment for their full balance of a supported token if a malicious API asked for it, security firm V12 said on October 22. The cause was the SDKs' default client, which set no spending limit until releases on August 18 added one. The risk was limited to agents who automatically signed payments and whose apps set
Cloud hosting provider Railway published an urgent warning to users after detecting suspicious activity on its systems that store customer environment variables earlier this week. The company says its investigation indicates that, in some cases, an unauthorized third party may have obtained decrypted variables and urges all users to proactively rotate secrets and credentials. “Our investigation to date indicates that an unauthorized third party may have accessed encrypted environment variables and, for some of them, obtained the decrypted contents,” Railway says. “Environment variables may contain secrets such as API keys or database and registry credentials,” the company clarifies. Railway is a cloud platform for developers to deploy and run applications, APIs, databases, and various backend services. It has around 4.8 million users and hosts more than 16 million services.
China-linked Storm-0940 used AI tool ARTEX to target 2,250 Microsoft 365 tenants, exploiting stolen ConnectWise credentials at machine speed. Microsoft published a detailed technical report naming Storm-0940, a China state-aligned group, as the actor behind the ConnectWise Cloud Backup supply chain compromise. The group used ARTEX, an open-source AI-driven penetration testing framework, to run attacks at machine speed against hundreds of organizations across aerospace, defense, energy, financial services, government, manufacturing, and more. “Several of these Storm-0940 ARTEX-driven attacks have resulted in the actor obtaining privileged access to an organization’s cloud infrastructure – including multiple instances where the time from initial targeting to privileged access was less than 3 hours.” reads the report. “Microsoft assesses that Storm-0940 was responsible for the recently disclosed ConnectWise supply chain compromise of a multi-tenant application.” Storm-0940 has been active since 2021 and has historically relied on password spraying and OAuth application abuse to get into Microsoft 365 environments. Adding ARTEX changed the scale of what they could do. In some attacks, the time between initial targeting and achieving privileged cloud access was under three hours. Before obtaining the ConnectWise credentials, Storm-0940 launched a password spraying attack between October 10 and 14. The attack came from the IP address 144.172.64[.]99. Microsoft recorded more than 151,000 failed login attempts against 327 accounts at eight organizations. Activity peaked on October 11, with 2,900 failed attempts per minute. Forty-eight accounts each received more than 1,000 failed attempts. None of these attempts succeeded. The situation changed on October 15, one day after the ConnectWise breach became public. The AI agents stopped trying passwords and switched to a different attack method. By then, Storm-0940 had obtained the credentials of several ConnectWise cloud application accounts. The agents used these credentials to log directly into customer Microsoft 365 environments. “Storm-0940’s use of ARTEX accelerated the speed of compromised application abuse to authenticate to Microsoft 365 customer environments through applications that had already been granted access.” Microsoft continues. “This allowed the threat actor to operate without requiring an interactive user sign-in. “ The agents used applications that already had permission to access their targets. This allowed the attackers to enter customer environments without requiring users to sign in interactively. In a subset of environments where authentication succeeded, the agents didn’t stop there. They moved into Microsoft Graph and ran directory reconnaissance, modified application credentials to establish persistence, and attempted changes to identities, groups, and privileged roles. Microsoft identified multiple customer environments with evidence of this follow-on activity. The persistence mechanism is the part defenders need to act on now, even if they’ve already disabled the ConnectWise connections. “These changes can remain active as a backdoor even after the original compromised application is mediated.” says the IT giant. An attacker who added their own credentials to a trusted application before you revoked access still has a working key. Reviewing all service principal credential additions since at least October 1 is the right starting point, not October 15 when the public breach was announced. ARTEX is not a tool used only by Storm-0940. Microsoft says threat actors in several regions have used the same framework. Originally open-source, ARTEX was written in Go and can use different AI models to plan and carry out tasks. Researchers at Zscaler and Recorded Future also found a Chinese-speaking group using it to target South Korean financial institutions. The setup used DeepSeek, GLM, and Grok as coordinated AI agents, with GLM checking DeepSeek’s work. After these attacks became public, the project went closed-source. However, anyone who already has a copy can still use it. The speed point is what Microsoft keeps coming back to in its report. Agents don’t take weekends, don’t sleep, and can run multiple attack paths simultaneously. “This activity demonstrates how threat actors are integrating agentic AI into existing offensive security workflows and allows them to scale their operations exponentially.” Microsoft concludes. “Agents are not constrained by factors affecting humans – they can work around the clock, on weekends, and on holidays and attempt multiple breach paths simultaneously enabling significantly reduced time from selecting a target to achieving objectives, increasing the speed and impact of complex attacks like supply chain compromises.” When Storm-0940 had valid application credentials, they didn’t have to iterate slowly. They hit 2,250 tenants with 2,900 sign-in attempts per minute, a pace at which manual detection and response simply can’t keep up. Follow me on Twitter: @securityaffairs and Facebook and Mastodon Pierluigi Paganini (SecurityAffairs – hacking, ARTEX)
Japanese gaming giant Capcom has confirmed that hackers breached its membership service, CAPCOM ID, exposing more than 11.7 million customer email addresses and associated information. Apart from emails, exposed data includes account creation date, last login timestamp, number of logins, and the IP address used at the last login. Capcom found that for a small subset of 43 accounts, dates of birth, gender, nicknames, and countries were also exposed. For another subset of 196 accounts, the hackers changed the CAPCOM ID login passwords in an attempt to lock the owners out, but the company took action and reset them. In an alert today, the gaming company says that passwords for all other registered members have not been exposed and that credit card information remained unaffected. Capcom is a Japanese video game developer and publisher known for franchises such as Resident Evil, Monster Hunter, Street Fighter, and Mega Man. The company has 4,000 employees and an annual revenue of $1.24 billion.
Right now, there is probably an AI agent running on a laptop somewhere in your network. It stores API keys and database passwords, can access your internal systems, and works without anyone watching. Nobody reviewed its access. Nobody owns it. If an employee had that much reach with that little oversight, you would call it an insider risk. So why do we still call the agent a productivity tool?
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