Valid concern, security and safety are essential for anything that can access a production system. We use k8s RBAC to ensure that the access is read-only, so even if the LLM hallucinates and tries to destroy something, it can't
As we will eventually move towards write-access, we're closely following the work in LLM safety. There has been some interesting work to use smaller models to evaluate tool calls/completions against a set of criteria to ensure safety
Other problem is that you become an extremely big target for bad actors as you have read/write (or just even read) access to all these k8s clusters. Obviously you can mitigate against that to a fairly high degree with on prem, but for users not on that...