Zscaler CEO Jay Chaudhry says businesses’ interest in AI—and concern about the risks posed by AI agents—is supporting demand for zero-trust security. That is the company leader’s explanation of a demand trend, not independent evidence that AI has caused security spending to rise across the market.
What Zscaler’s CEO said about AI and security demand
In an interview with Romaine Bostick and Sally Bakewell on Bloomberg Television’s The Close, Chaudhry said companies want AI’s potential to improve revenue and efficiency but are also concerned that AI agents could create cybersecurity risks. He linked those concerns to stronger demand for zero-trust security, according to an October 6, 2026 report by MarketScreener.
The report also says Zscaler reaffirmed its first-quarter and full-year guidance at its investor day. It does not establish that AI models have caused a market-wide increase in cybersecurity spending.
Why AI agents raise security questions
AI agents can act on instructions and interact with business systems, so organizations need to consider what data and applications an agent can access and what actions it can take. A security approach that can identify AI use, enforce access rules, and monitor activity may help organizations manage those risks. Chaudhry’s broader point is that companies are trying to adopt AI while keeping that use secure.
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In a January 27, 2026 announcement, Zscaler described new enterprise AI security capabilities designed to give organizations visibility, controls, and governance over enterprise AI use. The company’s CEO, Chairman, and Founder, Jay Chaudhry, said: “AI is changing how businesses operate, but traditional security approaches were not designed to secure AI.”
What Zscaler’s AI security report found
Zscaler’s ThreatLabz 2026 AI Security Report said most of the enterprise AI systems it analyzed could be compromised in 16 minutes, and that critical flaws were found in 100% of the systems analyzed. These are findings reported by Zscaler, not independently validated results; they describe the systems in the company’s analysis and should not be read as a measurement of every enterprise AI system.
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What the company’s later results add
On its fiscal 2026 fourth-quarter call, Zscaler management described AI as a tailwind for its Zero Trust and Security for AI offerings. Management also said Security for AI bookings rose more than 50% sequentially in Q4. That is a company-reported booking figure for one quarter, not independent proof that AI is driving security demand across the industry.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What this means for businesses
The statements point to a practical tension: organizations may pursue AI’s expected business benefits while assessing the exposure created by AI tools and agents. For a security program, relevant questions include whether teams can see which AI applications are being used, control what information enters prompts or leaves in responses, limit agents’ permissions, and apply protections across the applications and environments where AI operates. The sources do not establish how Zscaler compares with other vendors on these capabilities.
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