Barracuda launches AI Data Security for smaller firms

Barracuda has launched AI Data Security, an AI security and governance product aimed at resource-constrained organisations and managed service providers.

The launch follows Barracuda research showing that nearly half of senior IT leaders believe their teams lack the skills to securely govern AI already in use across their businesses.

AI Data Security extends Barracuda's AI security portfolio and runs on the BarracudaONE platform. It is designed to give organisations visibility into AI use, apply data protection controls, detect certain threats and produce records for compliance reviews.

The system covers more than 1,300 generative AI tools, including Copilot, ChatGPT, Claude and Gemini. It can inspect prompts and uploads in real time and apply policies by team, tool and data type.

Barracuda is targeting smaller organisations and MSPs that may not have dedicated AI governance specialists. It argues that larger vendors have typically built AI governance products for big enterprises, leaving smaller customers to manage complexity, skills requirements and cost.

That argument is central to Barracuda's own research, which found that many senior IT leaders say their organisations are already using AI but their teams lack the skills needed to govern it securely.

Barracuda also pointed to broader concerns around breaches and oversight. It cited IBM's Cost of a Data Breach Report 2026, which found that 68% of organisations that experienced a breach lacked policies to manage AI or detect shadow AI.

Product details

AI Data Security includes prebuilt detection for sensitive information and is designed for quick deployment. It can block customer data, passwords, financial records and proprietary code from being sent to generative AI services.

The service is also intended to stop prompt injection, jailbreak attempts, hate speech and other policy-violating topics. Barracuda linked these features to the OWASP LLM Top 10, a framework used to describe security risks in large language model applications.

For compliance teams, the product records AI interactions and supports exports for insurers and auditors. That reflects growing demand from organisations to show how AI tools are being used internally and what controls are in place around data handling.

The software uses firewall-style workflows and a guided configuration assistant called Bailey. MSPs will be able to manage multiple customers centrally and buy the product through a bundled pricing model intended to fit existing service structures.

Customer demand

Several customers and partners described AI governance as a practical challenge rather than a theoretical one, especially in regulated or service-heavy environments where oversight and documentation matter.

"AI adoption is accelerating faster than most businesses can keep pace, creating one of the most urgent new security and compliance challenges organisations face today. Organisations need a practical way to secure AI as a new attack surface, protect sensitive data, enforce responsible use, and demonstrate compliance. At the same time, they need the confidence to embrace and accelerate AI adoption as a driver of productivity and innovation. Barracuda AI Data Security delivers those capabilities in a single, easy-to-deploy solution. This is the first of several innovations that will expand our AI Security suite and help businesses unlock AI's full potential, securely," said Neal Bradbury, Chief Product Officer, Barracuda.

Healthcare group Horizon Health Alliance said governance and oversight are among the more difficult aspects of AI adoption. The organisation highlighted the need to protect patient and other sensitive data while maintaining consistent policy enforcement.

"Harnessing the benefits of AI in a safe, responsible and impactful way is a strategic priority for Horizon, but governance and oversight can be challenging and quite complex. We need solutions that make protecting patient and other sensitive data seamless, while ensuring consistent policy enforcement and providing clear guardrails for responsible use. Barracuda AI Data Security will enable us to adopt AI faster and with far less risk, so our teams can stay focused on delivering exceptional care," said Jake Haacker, Chief Information and Security Officer, Horizon Health Alliance.

MSPs also appear to be a core audience for the launch. Service providers are increasingly being asked by customers to help write AI policies and oversee the use of mainstream generative AI tools across business functions.

"Our customers are already adopting AI and working with us to build AI policies that fit their specific security frameworks with a mindset of quick adoption. But policy only goes so far - both the business and IT need safeguards. We need controls that are simple, scalable and built for real-world environments. Barracuda AI Data Security gives us, as an MSP, a powerful way to help our customers embrace AI securely - with centralised management, strong data protection and clear evidence of compliance. It will enable us to lead customers through responsible and secure AI adoption with peace of mind and real controls protecting their business," said Geoff Turner, Chief Executive Officer, Elevate Technology Group.

Another managed services executive said the product could help providers guide customers through AI deployment with more structure and control.

"AI is reshaping the future of how our customers work, and MSPs have a critical role in helping them adopt it responsibly and at scale. What stands out about Barracuda AI Data Security is the forward‐thinking foundation it gives us - a way to guide customers into an AI‐driven future with clarity, control and confidence. The blend of visibility, governance and simplicity will empower organisations to innovate boldly without introducing new risk. It's a pivotal advancement for MSPs and the customers we serve," said Adam Galfskiy, Head of AI, Aura Technologies.

AI Data Security will also be included in SecureEdge Premium Access at no additional cost.