AI in Security: MDR Costs Remain High Despite Efficiency

Artificial intelligence is making security operations more efficient, but managed detection and response solutions haven't become more affordable. Threat detection and response acts as an airbag for cybersecurity, offering continuous monitoring and incident response. However, for many smaller organizations, these services are priced as a premium. Historically, cybersecurity relied on experienced security analysts to interpret logs and investigate threats around the clock, driving up costs. Now, AI SOC platforms and automation are changing this model. AI systems can triage thousands of alerts, identify patterns, and escalate only critical incidents to human professionals. This shift means AI handles much of the repetitive monitoring work, often faster and more consistently. As a result, the cost of core security operations tasks is falling, even with growing cyber threats. However, pricing models for managed detection and response solutions are slow to change. Many providers built their services and pricing around the assumption of manual analyst review for every alert. Even with new AI technology, these established pricing frameworks, like per-endpoint fees, remain. Adjusting these models across the industry takes time. This means that despite AI making security more efficient, the cost savings aren't yet consistently passed on to consumers.