The AI Effect: What Identiverse 2025 Revealed About the Future of Identity

Jun 6, 2025

Sameera Kelkar

Sameera Kelkar

Sameera Kelkar

AI isn’t coming for identity—it’s already transforming it. At Identiverse 2025, the most urgent conversations weren’t just about authentication, governance, or zero trust. They were about how AI—especially agentic AI—is radically redefining who (and what) needs access, how decisions get made, and where the next generation of identity risk will emerge.

Here are six takeaways from the event that show how AI is becoming both the biggest opportunity—and the biggest challenge—in identity today.

1. AI-Powered Identity Is No Longer Aspirational—It’s Operational

What used to be considered “futuristic” is now table stakes. AI is already being used to drive real-time risk scoring, behavior-based access decisions, and automated provisioning. Several vendors showcased AI features that are already live in enterprise IAM stacks, from adaptive access to generative identity insights.

But alongside the hype came a serious warning: AI hallucinations, over-permissioning, and data exposure are real risks. Identity teams need new checks and balances—explainability, audit trails, and human-in-the-loop oversight—to ensure AI doesn’t create more problems than it solves.

The bottom line is that AI will accelerate identity operations—but only if it’s governed responsibly.

2. AI Agents Are the Fastest-Growing Non-Human Identity—and the Least Understood

Non-Human Identities (NHIs) were already multiplying thanks to APIs, service accounts, and automation. But now, Agentic AI—AI systems that can autonomously execute multi-step workflows—is pushing that growth to new extremes.

AI agents are being connected to CRMs, ticketing systems, and cloud consoles. But most identity systems weren’t built for autonomous actors that think, plan, and act. The result? Over-permissioned agents, hidden access paths, and limited visibility into what these agents are doing on behalf of users.

AI agents need to be treated as first-class identities—with proper lifecycle, role-based access, and logging.

3. AI Is Forcing a Rethink of Least Privilege

The traditional model of least privilege—assign minimal rights and review them periodically—doesn’t hold up when AI agents are dynamically accessing resources across environments. One common theme: organizations must move toward context-aware authorization, where access isn’t just about roles but about real-time context and AI intent.

Some sessions explored how Model Context Protocol (MCP) and AI-specific authorization layers can help constrain what AI agents can do, based on the user they’re acting on behalf of and the data they’re touching.

If you want secure AI, you need fine-grained, dynamic permissioning—not static RBAC.

4. Identity Resilience Is Critical in an AI-Driven World

As AI takes on more business-critical tasks—from generating content to triggering transactions—your identity layer becomes your single point of control. That makes IAM infrastructure more important—and more vulnerable—than ever.

Attendees were urged to invest in identity resilience: immutable backups, failover capabilities, and response plans for identity-based outages or attacks. If your AI agents can’t authenticate, can’t authorize, or get hijacked, your entire automation stack fails.

AI makes identity infrastructure more powerful—and more mission-critical.

5. Passwordless Is the Easy Part. AI-First Authentication Is Next.

Passkeys, phishing-resistant MFA, and frictionless UX were still front and center—but increasingly, the conversation moved beyond the login box. With AI agents initiating actions and accessing systems 24/7, organizations need new models for machine-native authentication and delegated access.

Rather than users authenticating directly, AI agents may need to prove their identity, their intent, and their authority—all within milliseconds.

The future of authentication isn’t just passwordless—it’s AI-native.

6. Regulation and AI Governance Are About to Collide

As enterprises rush to adopt AI, regulatory frameworks are playing catch-up. Several sessions spotlighted upcoming mandates like the EU AI Act, NIS2, and DORA, all of which will intersect with identity governance.

To stay compliant, organizations will need clear answers to questions like:

  • What AI agents have access to sensitive systems?

  • Who do they act on behalf of?

  • What guardrails are in place to prevent misuse?

Takeaway: AI governance starts with identity. If you can’t control and audit your AI agents, you can’t meet regulatory demands.

Final Thoughts

At Identiverse 2025, one message came through loud and clear: AI is not a separate challenge from identity—it is the next identity challenge.

AI agents are your newest users. LLMs are making access decisions. Workflows are being automated faster than security teams can respond. If identity is your control plane, it needs to evolve as fast as the AI systems it's meant to govern.

The organizations that win won’t be the ones that adopt AI the fastest. They’ll be the ones that adopt it securely.

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