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A failure mode where an error or malicious input in one AI agent's reasoning triggers a chain reaction of failures across multiple connected agents or systems.
Many enterprise agents now operate as multi-agent systems. If Agent A accepts a poisoned data input and passes a Trusted label to Agent B, the error can snowball through the entire business workflow. Governance requires Isolation Barriers between agents to ensure that one compromised reasoning chain cannot bring down the entire ecosystem.
Real world example:
An AI auditor accepts a fake receipt as valid; it passes this Success signal to a payment agent which then pays a fraudulent vendor - a Cascading Failure that results in financial loss.




