Palo Alto Networks CEO says the enterprise may not welcome agentic AI browsers

In a Thursday interview with CNBC's Jim Cramer, Palo Alto Networks CEO Nikesh Arora suggested the enterprise may not be comfortable with browsers run by agentic artificial intelligence.

"I think unless there are controls built into agentic browsers, which are oriented around credentials and enterprise security, they're not going to be allowed in enterprises in 24 months," Arora said.

Arora explained that as a consumer, he likes the idea of an agentic browser — one that can, for example, perform tasks like booking plane tickets, making reservations or calling Ubers. However, he said that browsers would need "credentials" from users, and so users' "ability and desire to give them autonomy becomes important."

He predicted that many major tech companies will start to develop agentic browsers, noting they are already spending billions to create and operate impressive models. But he said agentic browsers are "at odds with the enterprise," as companies would be wary of the AI agents' autonomy.

Arora mentioned his company's plans to buy CyberArk, an Israeli identity security provider. The acquisition is worth $25 billion and would be the largest deal the cybersecurity company has ever made. He claimed that a substantial majority of breaches occur because of credential theft. Arora suggested that compared to 15 or 20 years ago, it's now easier for more members of a company to have the credentials to access privileged information — "the crown jewels" — which means employees need to be protected equally.

"[CyberArk] figured out a way with the lowest intrusion, lowest friction, lowest latency way possible, to figure out a way to manage the crown jewels and manage the access for all of users," Arora said.

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Disclaimer The CNBC Investing Club Charitable Trust owns shares of Palo Alto Networks.