Since the public emergence of ChatGPT in late 2022, public perception of artificial intelligence (AI) largely framed it as a helpful, responsive chatbot capable of generating text and even computer code on demand. However, in under three years, the technology has evolved substantially, giving rise to what is now being termed Agentic AI — systems that transcend simple prompt responses to perform complex, multi-step tasks autonomously. These advanced AI agents are able to invoke APIs, execute commands, and write or deploy code independently, thus shifting from passive assistants to active decision-makers. While this evolution promises significant utility and productivity gains, it simultaneously introduces pronounced security risks and governance challenges for organisations.

The foundational risks of Agentic AI became apparent as early as 2023, highlighted in the OWASP Top 10 for Large Language Model Applications report, which coined the term "excessive agency" to describe the dangers of granting AI systems too much autonomy. This vulnerability arises when AI agents operate more like independent actors than controlled assistants, potentially resulting in unintended and harmful actions—ranging from innocuous mistakes such as mismanaging scheduling to severe consequences like unauthorized file deletions or the rogue provisioning of cloud infrastructure. Real-world demonstrations have shown that high-profile AI tools, including Microsoft Copilot and Salesforce's Slack-integrated agents, have been exploited to misuse escalated privileges and extract sensitive data.

Responding to these challenges, 2025 has seen the introduction of new standards and protocols aimed at safely managing the capabilities of AI agents. Among the most notable is Anthropic's Model Context Protocol (MCP), designed to maintain shared memory, task structures, and tool access during extended AI agent sessions. MCP provides a framework for defining explicit permissions and memory retention for agents, effectively operating as a kind of 'glue' that holds an agent’s operational context together over time and across functions. Despite these advances, MCP currently emphasises expanding an agent’s functional scope rather than constraining it, leaving critical issues like prompt injection resistance, command scoping controls, and protection against token abuse insufficiently addressed. Such gaps in security design have already been exposed through vulnerabilities involving memory poisoning and command misuse, especially where encryption and scoping of shared memory are lacking.

The implications of Agentic AI's ascent are profound for business operations. Coding assistants like Claude Code and Cursor have transcended their origins as mere code suggestion tools to become autonomous task executors, with internal studies revealing productivity lifts of over 50%. Anthropic noted that 79% of Claude Code’s usage now centres on automated task execution, not just code assistance. Moreover, MCP integration is expanding Agentic AI’s influence beyond programming, encompassing functions as diverse as email triage, sales planning, meeting preparation, and document summarisation. These developments mean that organisations cannot treat these tools as novelties but must consider them integral components of operational infrastructure, necessitating robust oversight from leadership including CIOs, CISOs, and Chief AI Officers.

To safely harness the benefits of Agentic AI, businesses need to implement comprehensive governance, risk management, and strategic planning frameworks from the outset. This includes initiating controlled pilot programmes, enforcing rigorous code reviews, restricting tool permissions, and employing sandboxing to isolate AI agent operations. Limiting agent autonomy to essential functions, avoiding unnecessary root access or long-term memory retention, and training developers on secure usage practices such as scope control and fallback protocols are vital. Failing to embed these safeguards risks outages, data breaches, and regulatory penalties. The emerging consensus is clear: organisations that proactively integrate AI agents as a core architectural element, rather than treating them as experimental add-ons, will be best positioned to leverage their substantial productivity advantages while mitigating associated risks.

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Source: Noah Wire Services