WHITE PAPER
How AI is Going to Change Your IAM Initiatives Unfold how enterprises can take a proactive approach to access control, and beyond.
Table of Contents Executive Summary ���������������������������������������������������������������������������������������������������������������������������������������������������������������� 3 The Need for a Mature IAM�����������������������������������������������������������������������������������������������������������������������������������������������������4 Can AI improve this situation?���������������������������������������������������������������������������������������������������������������������������������������������� 5 The Challenges of Digital Identity Management���������������������������������������������������������������������������������������������������������������� 6 Pressing issues can overshadow digital identity management���������������������������������������������������������������������������� 6 Outsourcing identity management is frowned upon ���������������������������������������������������������������������������������������������� 6 Global data protection laws are becoming more stringent, posing enforcement challenges���������������������� 7 A Steady Shift Towards AI�������������������������������������������������������������������������������������������������������������������������������������������������������8 Two sides of the same coin, consumer and enterprise identity services are converging�������������������������������������9 Consumers are expecting more �����������������������������������������������������������������������������������������������������������������������������������9 Enterprises are dealing with more�������������������������������������������������������������������������������������������������������������������������������9 The Anatomy of a Perfect CIAM Platform�������������������������������������������������������������������������������������������������������������������������� 10 3 Ways to Build a Frictionless, User-Centric CIAM with AI�������������������������������������������������������������������������������������������� 12 1. AI will increase visibility�������������������������������������������������������������������������������������������������������������������������������������������� 12 2. Automation and flexibility���������������������������������������������������������������������������������������������������������������������������������������� 12 3. Go beyond compliance ��������������������������������������������������������������������������������������������������������������������������������������������� 13 Conclusion�������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 14
Executive Summary The idea of Artificial Intelligence (AI) and Machine Language (ML) isn’t new, but it is rapidly transforming many existing technologies and processes. Identity and access management (IAM) is no exception to this trend. IAM has become a focal point within enterprise security as vendors leverage robust artificial intelligence approaches to address existing identity threats, enhance security, mitigate risk and uphold regulatory compliance standards. The ability to have and understand data has been the cornerstone of every enterprise. However, the volume, velocity, and variety of data today have created new challenges for organizations and individuals. AI is a powerful and flexible set of tools that makes it possible for businesses to change how they analyze information and make decisions. This whitepaper is a comprehensive overview to explain AI to an audience of opinion leaders and interested observers to demonstrate how AI is already changing the world and solving important consumer identity management problems.
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The Need for a Mature IAM The potential impact of cyber threats on an organization is big, and it's getting bigger every day. Businesses are more connected than ever before as they interact with partners and consumers around the world. Yet, we find that many business IAM strategies fail to address long-term impacts, particularly as they relate to risk. The time has come for a new approach. According to a Forrester report, 83 percent of businesses do not have a mature approach to IAM. As opposed to organizations with their IAM strategy in place, the likelihood of a data breach is twice as large for these businesses. In contrast to their less mature counterparts, the study also shows a strong link between smarter IAM approaches and reduced security risk, enhanced efficiency, increased privileged activity control, and significantly reduced financial loss.
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Can AI improve this situation? By applying AI solutions to access management, enterprises can take a proactive approach to access control that reduces the potential for human error--gaining a greater level of control that they never had before. If you’ve spent a lot of time looking at identity access management strategies, you know that there is more to it than just creating groups and assigning permissions. That’s where a simple yet enterprise-ready access management solution can help. By leveraging AI and other technologies, enterprises can benefit from IAM as a strategic approach that is manageable by all organization levels. Comprehensive analytics can help your teams find the information they need fast. Collaboration tools, contextual insights, and AI-powered search will make them immediately effective while reducing the training time they need to spend in the app. Modern technologies, such as machine learning models and cloud computing technologies, will help enterprises increase their security levels since they can detect real-time threats. The chances of attacks being spotted by security technicians are much higher when using innovative technologies. These systems will also allow enterprises to reduce their number of security experts, as well as decrease potential production downtimes. Besides, it enables enterprises to look at access management beyond basic authentication and authorization, which helps them move from a reactive approach to more proactive solutions. It allows businesses to be continuously in control of the access they grant their consumers, which leads to continuous security and compliance.
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The Challenges of Digital Identity Management Emerging challenges are a reflection of the ever-changing nature of identity management. While these challenges continue to impact technology, they also help us to understand identity management better. Some of the top ones include:
Pressing issues can overshadow digital identity management Implementing digital identity is more of a marathon than a sprint. So no, it is not that companies aren't thinking about implementing it, but they are also dealing with cybersecurity-related issues, and they may need to show a return on investment on cybersecurity initiatives. In Deloitte's 2019 Future of Cybersecurity survey, which polled 500 C-level executives accountable for cybersecurity, more than half (54%) said they spend less than 10% of their cyber budget on identity solutions, with 95% saying they spend less than 20%. Furthermore, 88 percent dedicate less than 10% of their time to identity and access management.
Outsourcing identity management is frowned upon According to the same survey by Deloitte, on-premise deployments are the top preferred way to acquire, execute, and provide continuous delivery of identity capabilities, with 36 percent of respondents choosing this option. This is particularly true among chief information security officers (CISOs), who favor on-premise solutions 60 percent of the time. Only 24% of all respondents chose cloud-based identity-as-a-service (IDaaS) implementations, and only 32% outsource their identity and access management to third parties. So, what is holding organizations back from adopting IDaaS? Worries about integration, flexibility, obtaining specialized support, and a lack of confidence, to name a few.
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Global data protection laws are becoming more stringent, posing enforcement challenges Governments around the world are considering new laws and regulations to protect the personal data privacy and digital identity of their citizens. Businesses must comply with legislation such as the General Data Protection Regulation (GDPR) of the European Union, the California Consumer Privacy Act (CCPA), and Canada's revised Personal Information Protection and Electronic Records Act (PIPEDA). They must also adhere to a number of other requirements, including the National Institute of Standards and Technology's Cybersecurity Framework (NIST). This puts further pressure on cybersecurity leaders and executives, as they must build a more holistic view of their customers to meet legal and auditing requirements.
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A Steady Shift Towards AI Despite the challenges, approaches to digital identity management are rapidly evolving. Organizations are increasingly reliant on cloud technology, with a general trend toward AI-services and consumption-based models. Some businesses have shifted their identity stacks to the cloud as part of this transition, while others use identity-as-a-service. By 2022, 40% of global midsize and larger businesses will use identity and access management as a service (IDaaS) capabilities to meet most of their IAM requirements, up from 5% today. One explanation for this is that cloud providers and third-party cloud operators are likely to have much more advanced capabilities than what an organization would have in-house, negating the need for software and infrastructure updates. In addition, with many businesses experiencing a shortage of qualified cybersecurity specialists, using managed services eliminates the need to hire, train, and retain this high-end talent. A lot of organizations are also going out of their way by experimenting with a variety of emerging technologies. For example, they move beyond basic logins and passwords and use increasingly advanced authentication mechanisms like mobile biometrics and behavioral monitoring as standard practices in digital identity management. Companies actively track and authenticate users in today's "zero trust" environment, assessing their level of risk based on who they are, what they access, and when and where they do it. They are increasingly relying on artificial intelligence (AI) technology to detect abnormalities and recognize behavior that does not match a specific pattern.
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Two sides of the same coin, consumer and enterprise identity services are converging The next-generation identity provider must address requirements for both consumer and enterprise sectors.
Consumers are expecting more
Enterprises are dealing with more
As the digital interaction between consumers and
As businesses' transformational initiatives grow,
businesses is increasing in complexity, companies
companies must understand the benefit of enterprise
want to make sure that those logging in are who they
identity management.
claim they are and that their experience is positive. A
One of the most serious identity-related issues that
few reasons why include:
businesses face is related to compromised identities.
Consumers want more; they want to log in once
Not just external, companies are also being exposed
and have instant access to whatever they need and
to a host of internal identity management issues,
whenever they need it.
like:
•
•
They expect a consistent experience across all
•
platforms they interact with, including mobile,
talent, and since digital identity doesn't get a
Web, chatbots, and virtual assistants.
lot of funding, these important resources are hard to onboard.
They are becoming more aware of privacy concerns and are reluctant to share too much
•
personal information. •
have yet to develop modern frameworks that
They want personalization, convenience, and
They expect a certain degree of visible security. Multi-factor authentication (MFA), for example, helps them feel safe when conducting
Cybersecurity teams are still reluctant to move to cloud-first architectures. Many companies are API-based, orchestrated, and allow for easy
versatility in their interactions. •
There is still a severe shortage of cybersecurity
app integration. •
There is a hope that cybersecurity will assist in digital transformation.
online transactions.
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The Anatomy of a Perfect CIAM Platform Businesses should consider an all-in-one CIAM platform that handles people, processes, and devices throughout their enterprise. If you want to allow true digital transformation, you need to involve customers, vendors, partners, and more in a comprehensive framework. There are a number of key features that are essential if you want to implement a robust customer identity and access management.
Features
Key Expectations
Advanced Frictionless Security
Frictionless security means easy-to-use security. Consumers should be presented with a beautifully integrated access solution that works so well they barely notice it.
Strong Privacy Management
A good consumer identity platform should enable you to keep up with local laws anywhere in the world that you do business.
Integration with APIs
A perfect CIAM platform should connect all native and third-party applications that handle consumer data.
Data Access Control and
Consumer data needs to be securely protected at all times, yet at the
Aggregation Process
same time be available to those who should be able to use it. A good CIAM solution will let you develop schemas flexibly so you can get the most out of your systems.
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Features
Key Expectations
Security Compliance
Your CIAM platform must meet compliance requirements on a global scale, even though many of these requirements are constantly changing and evolving. It should: •
Protect data in transit and at rest.
•
Store and manage access to consumer data.
•
Implement multi-factor and enhanced authorization.
•
Certified by third-party security standards like SOC 2, HIPAA, and ISO.
•
Meet industry and location-specific needs wherever you do businesses.
Consumer Analytics
One of the best things about an advanced CIAM solution is the ability to tie in consumer analytics, giving you a much deeper and clearer understanding of each customer. Here’s what this data can be used for:
Scalability During High Demand
•
Monitor and improve customer experience.
•
Feed data back to product development teams.
•
Hone sales and marketing functions.
•
Deliver targeted content effectively.
Your CIAM solution must be scalable, making it possible to meet unexpected demand without faltering.
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3 Ways to Build a Frictionless, User-Centric CIAM with AI 1. AI will increase visibility The need for seamless, constant, and reliable access to information will become increasingly important as business processes become more interconnected. Advanced authentication systems based on artificial intelligence will play a significant role, mainly when collecting and analyzing data much faster than humans. AI systems could continuously track users as they travel across the network and monitor any irregular behavior, working within a user's access permissions. For instance, they could tell whether users were trying to access a part of the system they shouldn't be or if they were uploading more documents than allowed.
2. Automation and flexibility Since AI can monitor even the tiniest specifics of a user's behaviour, it's possible to automate authentication for low-risk access situations. It will relieve the IT department of IAM management to some extent and prevent "security fatigue". AI can also take care of the situations around the following access requests: •
Time
•
Device type
•
Location
•
Resources being requested
Laying the eyes on these details can help IAM become contextual and granular and make it easier to monitor glitches caused by insufficient provisioning or deprovisioning. AI-powered systems can apply the appropriate IAM policies depending on the access request, making it easier for the IT department not to waste time figuring out the basics of "least privilege."
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3. Go beyond compliance Many businesses believe that adhering to privacy legislation is enough to avoid hackers, but these laws aren't complex enough to satisfy the security needs of every business. The fundamental objective of compliance is to limit access rights to only those who need it and keep everyone else out. However, the access standards vary from industry to industry. Relying on compliance to solve security issues would likely result in security flaws. But then, regulations are constantly changing, which further complicates the situation. Plus, they are difficult to implement. An AI-powered IAM comes in handy in these situations. Since AI and ML continuously monitor traffic, learning habits and applying granular access controls, companies can easily implement security policies. At the same time, it becomes difficult for hackers to exploit the stolen credentials.
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Conclusion AI is no longer a hazy, far-fetched concept that no one can realistically implement. The more you understand the full context of an AI-enabled environment, the less you interrupt your consumer experience. When AI is introduced with the appropriate monitoring and reporting tools, you can modernize your identity and access management system. It also becomes possible to visualize overall breach risk using adaptive access, identity analytics, and decentralized identity strategies.
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LoginRadius is a leading provider of cloud-based Customer Identity and Access Management solutions for mid-to-large sized companies. The LoginRadius solution serves over 3,000 businesses with a monthly reach of over 1 billion users worldwide.
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