Why Zscaler Stock Is Up Today
Key Points
Artificial intelligence is making traditional online security systems obsolete.
Zscaler wants to help companies protect their vital IT infrastructure in the age of AI.
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Shares of Zscaler (NASDAQ: ZS) rose on Tuesday after the cloud protection specialist debuted a suite of new artificial intelligence (AI)-powered cybersecurity tools.
As of 1:05 p.m. EST, Zscaler's stock price was up more than 3%.
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Cyber sentinels are struggling to defend against AI threats
Companies are racing to adopt AI tools, but without the proper safeguards. That's according to a report released by Zscaler, which found serious flaws in 100% of the corporate AI systems it studied.
Worse still, Zscaler claims most of these enterprise AI systems could be breached in as few as 16 minutes.
"AI is no longer just a productivity tool but a primary vector for autonomous, machine-speed attacks by both crimeware and nation-states," Zscaler executive Deepen Desai said in a press release. "In the age of agentic AI, an intrusion can move from discovery to lateral movement to data theft in minutes, rendering traditional defenses obsolete."
Rethinking security in the age of AI
Zscaler developed advanced cybersecurity solutions to guard against these threats. Its new tools provide companies with an extensive view of their overall AI operations, including infrastructure, models, apps, development ops, and agents.
"Business leaders are looking for a comprehensive solution -- not more point products," Zscaler CEO Jay Chaudhry said. "At Zscaler, we're providing the security necessary for leaders to move forward with confidence and embrace the full spectrum of AI."
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zscaler. The Motley Fool has a disclosure policy.
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