Stock Markets January 27, 2026

Zscaler Shares Rise After Company Rolls Out AI Security Suite to Protect Enterprise AI Use

Cloud security vendor introduces a bundled offering and new defensive tools after research finds widespread AI vulnerabilities in enterprise systems

By Maya Rios ZS
Zscaler Shares Rise After Company Rolls Out AI Security Suite to Protect Enterprise AI Use
ZS

Zscaler Inc. shares climbed 5% Tuesday following the launch of the AI Security Suite, a set of tools intended to give organizations visibility and control over generative AI services, development environments, and embedded AI inside SaaS. The product rollout follows findings from Zscaler’s ThreatLabz 2026 AI Security Report, which reported critical flaws in all systems examined and concluded most enterprise AI deployments could be breached in 16 minutes.

Key Points

  • Zscaler stock rose 5% Tuesday after the company announced its AI Security Suite to protect enterprise AI deployments.
  • ThreatLabz 2026 AI Security Report found critical flaws in 100% of analyzed enterprise AI systems and estimated most could be compromised in 16 minutes.
  • The suite targets three use cases - AI Asset Management, Secure Access to AI with Zero Trust controls, and Secure AI Infrastructure and Apps - and integrates with major AI providers.

Zscaler Inc. (NASDAQ: ZS) saw its stock rise about 5% on Tuesday after the cloud-security provider unveiled a new AI-focused product set aimed at helping companies manage and secure the expanding use of artificial intelligence in business operations.

The company introduced the AI Security Suite, a package designed to deliver broad visibility and policy control across an organization’s AI footprint. The suite is intended to cover a range of AI touchpoints, including generative AI services, AI development environments, and AI embedded inside SaaS applications. According to Zscaler, the goal is to address security challenges that conventional security architectures were not built to handle.

Zscaler published the ThreatLabz 2026 AI Security Report alongside the product announcement. The research cited in the report found that most enterprise AI systems analyzed could be compromised within 16 minutes. Investigators identified critical vulnerabilities in 100% of the systems examined in the study, a finding the company used to underscore the need for purpose-built AI security capabilities.

The new AI Security Suite is organized around three primary enterprise use cases:

  • AI Asset Management - Providing a comprehensive inventory of AI assets and helping prioritize risks across them.
  • Secure Access to AI - Enforcing Zero Trust controls for access to AI services and models.
  • Secure AI Infrastructure and Apps - Protecting AI development and deployment throughout the lifecycle.

Zscaler says its approach is compatible with established policy and risk frameworks, citing alignment with the NIST AI Risk Management Framework and the EU AI Act. The company also indicated the suite integrates with leading AI providers, naming OpenAI, Anthropic, Amazon Web Services, Microsoft, and Google as platforms with which it works.

"AI is changing how businesses operate, but traditional security approaches were not designed to secure AI," said Jay Chaudhry, CEO, Chairman, and Founder of Zscaler. "We aren’t just securing the AI era; we’re accelerating it."

In addition to the AI Security Suite, Zscaler is expanding its defensive capabilities with a new MCP gateway intended to secure automation workflows, and an AI Deception technology designed to divert and neutralize model-based attacks. These elements are presented as complements to the suite’s asset, access, and infrastructure protections.


The company framed the combined product and research release as a response to a rapid rise in enterprise AI adoption and the security gaps the report indicates exist across current deployments. The announcement and reported findings form the factual basis for the market move that lifted Zscaler shares on Tuesday.

Risks

  • Enterprise AI systems face pervasive vulnerabilities - the report found critical flaws in all systems analyzed, raising operational and security risks for organizations using AI (impacts: enterprise software, cloud security, AI development).
  • Traditional security models may be inadequate for AI - existing defenses were not designed for AI-specific threats, which could leave enterprises exposed unless they adopt specialized protections (impacts: cloud services, SaaS providers, IT security teams).
  • Model-based attacks present a specific threat - Zscaler’s addition of AI Deception and an MCP gateway acknowledges the uncertainty around securing automation and deployed models (impacts: automation platforms, DevOps and ML ops workflows).

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