Cody Engel discusses type safety in Kotlin and how it helps make programming safer even when interacting with unsafe external APIs. Kotlin uses strict typing to prevent errors at compile-time. While external APIs may use unsafe patterns like nullable types, Kotlin provides features like null safety checks and extension functions to safely work with these APIs. The talk concludes by providing recommendations for designing safer APIs, such as using strict specifications and standardized formats like Protocol Buffers instead of JSON.