As companies hand off longer and more complex tasks to AI agents, they are running into an oversight problem: Agents can act faster, longer, and at greater volume than humans can realistically review. That issue reached a peak with the Hugging Face incident, which saw nearly 12,000 agents coordinating faster than human beings could track. How do you track an agent swarm that large?
The emerging answer from AI labs and startups is both simple and maddening: Put another AI in the loop. Relying on AI was necessary for the independent investigation of the OpenAI Hugging Face incident. Redwood Research’s chief scientist, Ryan Greenblatt, one of three auditors, jokingly referred to their efforts as a “slop-vestigation,” noting that the volume of data “made it impossible” to understand what was happening without relying on AI.
Some are skeptical of using AI to monitor AI. So they were thinking about it, right?” Those concerns haven’t stopped a whole cohort of startups from chasing this idea. Y Combinator has funded 106 companies related to AI observability in recent years, as TechCrunch counted.
A number of other startups, like Braintrust, LangChain, and Judgment Labs, have raised hundreds of millions of dollars, while more mature companies like Arize and Galileo — founded just five to six years ago — have already exited. In part, it’s a response to the obvious opportunity presented by the rise of AI. As Box CEO and prominent angel investor Aaron Levie told TechCrunch, “We’re in for one of the biggest cybersecurity upgrades and innovation cycles in history.” For some AI safety researchers, that has meant turning their research on rogue behavior into tools for the corporate sector.
Apollo Research, a public-benefit corporation that studies AI deception, launched an AI monitor called Watcher in February this year after switching its status from nonprofit to a public-benefit corporation. The tool puts yet another AI between a coding agent and its next action, connecting to agentic tools such as Claude Code and Codex. Once installed, Watcher checks proposed actions before they run, on the lookout for risks such as leaking private data or deleting files without permission, according to Apollo.
Apollo uses multiple layers of AI monitors, Kyle Dai, a member of Apollo’s technical staff, said in a written response to TechCrunch. Watcher’s approach starts with a fast, general check, then sends flagged activity to a more powerful or specialized monitor for closer review — which can then ask a human for approval or reject an action and explain why or even automatically block the action. Goodfire, another public-benefit corporation, is approaching the monitoring problem from inside the model itself — seeking a more faithful signal of the model’s internal state that is harder to spoof than surface behavior.
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