Right now, if you have a security breach, at least in the US, you send out a letter telling the person that their data could be God-knows-where and offer them two free years of credit monitoring. Victims aren't going to really use that because it's essentially useless. If they've got absolutely, positively nothing better to do with their time, I guess you could file a lawsuit. Who knows what the outcome would be. Probably not in their favor.

In other words, it's cheaper for them to overwork the InfoSec guys/gals and barely care about what is happening outside of day-to-day operations, than it is to really secure their stuff. So they don't spend that money.

If you saw corporate valuation-cratering fines being implemented - the kind that would end the c-suite's careers and bring shame to their family lines for seven generations - I bet that they'd start catering lunches for the InfoSec team.

Cybersecurity does not make money. They do not raise the profit for a company. Instead, they are compliance, contractual, and legal defences to repel lawsuits and keep data boundaries clean.

And who's the first to go? Groups that dont make money. Like cybersec.

Honestly, if you wanted to make a YC company today that targets AI in a meaningdful way, I'd say make it focused on cyber security analysis. ;)