Security Risks in Tool-Enabled AI Agents: A Systematic Analysis of Privileged Execution Environments

Tool-enabled AI agents are increasingly deployed in cloud-hosted environments and offered as services, where they perform side-effecting operations through privileged tools within execution environments. While such agents enable powerful automation, the security implications of hosting autonomous agents in privileged execution environments are not yet fully explored. This paper presents a structured analysis of security risks associated with cloud-hosted AI agents. We introduce a taxonomy of risk categories, illustrate these risks through three representative agent scenarios, and discuss mitigation strategies along with their tradeoffs. A small controlled experiment empirically illustrates risk manifestation and the effect of lightweight mitigations in this setup. Our analysis suggests that many risks in autonomous cloud agents arise not from novel vulnerabilities, but from over-privileged tools, capability-intent mismatches, and ambient authority leakage in execution environments. Based on these findings, we derive practical design guidelines for deploying AI agents in the cloud more securely.