If you’ve looked at endpoint protection solutions recently, you’ve probably noticed that every single vendor now claims to be “AI-powered.” CrowdStrike, SentinelOne, Microsoft Defender, Sophos, Bitdefender — they all use some form of machine learning. The term has become so ubiquitous that it’s essentially meaningless as a differentiator.

For SMBs trying to choose an endpoint protection platform, this creates a real problem. If everyone says they use AI, how do you evaluate whether the AI is actually doing anything useful? And more importantly, is AI-powered endpoint protection genuinely better than traditional signature-based antivirus for a 50-person business?

The answer to the second question is unambiguously yes. But the answer to the first question requires understanding what AI actually does in endpoint security — and what it doesn’t.

What AI Does in Endpoint Protection

Traditional antivirus works by maintaining a database of known malware signatures — essentially fingerprints of malicious files. When a file arrives on an endpoint, the antivirus checks it against the database. If it matches a known signature, it’s blocked.

The problem is obvious: this only catches known threats. A new piece of malware that hasn’t been added to the signature database passes through undetected. And the Australian Signals Directorate reports that the average time between a new malware variant appearing and signature databases being updated is still measured in hours to days. That’s a window of vulnerability.

AI-powered endpoint protection adds several layers on top of signature matching.

Static file analysis. Machine learning models analyse the structure and characteristics of a file before it executes — file size, code structure, embedded strings, metadata, packing methods. The model has been trained on millions of known-good and known-bad files and can predict whether a file is malicious based on its characteristics, even if it’s never been seen before. This catches many new malware variants on first encounter.

Behavioural analysis. Instead of just examining the file, the system monitors what the file does when it runs. Does it try to modify system files? Does it attempt to connect to suspicious external servers? Does it try to encrypt files? Does it inject code into other processes? These behaviours are characteristic of malware regardless of what the file looks like, and AI models trained on behavioural patterns can detect them in real time.

Anomaly detection. The system builds a baseline of normal behaviour for each endpoint — what applications typically run, what network connections are normal, what file access patterns are expected. When something deviates significantly from that baseline, it’s flagged. This catches attacks that don’t use malware at all — “living off the land” attacks that misuse legitimate system tools like PowerShell, WMI, or Task Scheduler.

What SMBs Actually Need

Here’s where the conversation gets practical. Enterprise-grade endpoint detection and response (EDR) platforms like CrowdStrike Falcon or SentinelOne Singularity are genuinely powerful, but they’re designed for organisations with dedicated security teams who can investigate alerts, tune policies, and respond to incidents.

A 30-person accounting firm doesn’t have a security team. They have an office manager who also manages IT, or a part-time IT person who comes in twice a week. What they need from endpoint protection is different.

High automation, low noise. The platform needs to handle threats automatically — isolate infected endpoints, block malicious processes, quarantine suspicious files — without waiting for a human to make a decision. And it needs to do this without generating a flood of false positive alerts that overwhelm whoever is nominally responsible for IT.

Managed detection and response (MDR). For SMBs without security expertise, an MDR service wrapping the endpoint platform is often more valuable than the platform itself. An MDR provider monitors your endpoints 24/7, investigates alerts, and responds to genuine threats on your behalf. This is effectively outsourcing your security operations to experts.

Microsoft Defender for Business (included in Microsoft 365 Business Premium at roughly $33 AUD per user per month) offers a solid baseline of AI-powered endpoint protection for SMBs already in the Microsoft ecosystem. For organisations wanting more, Team400.ai works with businesses to evaluate and implement appropriate security tooling that matches their actual risk profile and operational capacity.

Simple management. If the administration console requires a cybersecurity certification to operate, it’s wrong for an SMB. Look for platforms with straightforward dashboards, clear health scores, and policy templates designed for small business environments.

Evaluating AI Claims: Questions to Ask

When a vendor tells you their endpoint protection is AI-powered, ask these questions.

What specific AI/ML techniques do you use? If they can’t explain it beyond “we use AI,” that’s a red flag. Look for specific answers: “We use gradient-boosted decision trees for static file analysis and LSTM neural networks for behavioural sequence analysis.” Specificity indicates genuine capability.

What’s your zero-day detection rate? This is the metric that matters for AI-powered protection — the percentage of previously unknown threats detected without signature updates. Independent testing labs like AV-TEST and AV-Comparatives publish these results. Anything above 95% for zero-day protection is good. Below 90% is concerning.

What’s your false positive rate? AI models that are too aggressive will flag legitimate software as malicious. In an SMB environment, a false positive that blocks a critical business application is operationally devastating. Look for independently tested false positive rates and ask specifically about compatibility with your key business applications.

How does the AI update? Malware evolves constantly. AI models trained in 2024 may not effectively detect 2026 attack techniques. Ask how frequently the models are retrained and how updates are delivered. Cloud-based model updates are preferable to on-device model replacements.

What happens when AI fails? No AI model catches everything. What’s the fallback? Is there still signature-based detection running alongside the AI? Is there a cloud lookup service for suspicious files? Defence in depth matters.

The Honest Recommendation

For most Australian SMBs (under 200 employees), here’s the practical hierarchy.

1. If you’re on Microsoft 365 Business Premium: Turn on Defender for Business properly. Configure it, don’t just enable it. Set up automated investigation and response. This provides solid AI-powered endpoint protection at no additional cost beyond your existing subscription.

2. If you want more protection or aren’t on Microsoft: Sophos Intercept X with MDR or CrowdStrike Falcon Go with their Falcon Complete MDR add-on are strong options for SMBs. Both provide genuine AI-powered detection with managed response services that compensate for your lack of internal security expertise.

3. If budget is truly constrained: Bitdefender GravityZone Small Business Security provides AI-powered protection at a lower price point (~$5-8 per endpoint per month) with good independent test results.

The days of traditional antivirus being adequate are over. AI-powered endpoint protection is now table stakes for any business. The question isn’t whether to adopt it — it’s which implementation best fits your size, budget, and IT capabilities.