Generative AI is revolutionizing the field of Identity Access Management (IAM), bringing significant improvements to outlier behavior analysis, alert accuracy, and administrative efficiency in safeguarding against emerging threats. Security professionals recognize the potential of AI and machine learning (ML) in combating identity-based breaches and consider it a vital technology for harmonizing various identity frameworks. With an overwhelming majority (98%) acknowledging its benefits, the industry expects AI to excel in identifying outlier behavior for enhanced accuracy in detecting breaches (63%), improving alert precision (56%), and streamlining administrative tasks (52%).
The Identity Defined Security Alliance’s recent report on 2023 Trends in Securing Digital Identities reveals the challenges faced by security professionals in consolidating diverse identity frameworks from multiple vendors and different architectures to create a cohesive and insightful data foundation. Notably, the detection and prevention of insider threats and zombie credentials pose significant challenges. In response, leading IAM providers are embracing generative AI to develop auto-deployed decoys, enhance behavioral detection and response capabilities, advance Asset Graph technology, and expedite improvements to their extended detection and response (XDR) platforms. The industry’s top IAM providers, including AWS, CrowdStrike, Delinea, Ericom, ForgeRock, Ivanti, Google Cloud Identity, IBM Cloud Identity, Microsoft Azure Active Directory, Palo Alto Networks, and Zscaler, all have gen AI integration in their roadmap to leverage its contextual intelligence capabilities.
“The more successful gen AI is in shrinking attack surfaces, the more its net effect will be to expand the market.” – Gartner
Gartner predicts substantial growth for the IAM market, with its value expected to increase from $16.1 billion in 2023 to $24.9 billion in 2027. Additionally, the worldwide information security and risk management market is projected to witness significantly higher end-user spending, reaching $186 billion in 2023, with a 13.4% CAGR (constant currency growth) between 2022 and 2027. The cloud security segment is paramount in this growth, with products and services predicted to reach $12.8 billion in 2027, exhibiting a remarkable 23.5% compound annual growth rate. Application security is also expected to grow, reaching $9.6 billion in revenue by 2027, with a 13.6% CAGR. Furthermore, zero-trust security software and solutions are estimated to experience considerable growth, with spending forecasted to reach $60.7 billion by 2027, achieving a CAGR of 17.3%.
Gen AI: Closing Gaps in Cloud Security
Gen AI demonstrates its potential in addressing gaps within the rapidly expanding cloud security market. Cloud security products and services are predicted to grow from $4.4 billion in 2022 to $12.8 billion in 2027, showcasing a remarkable 23.5% CAGR. Similarly, application security is projected to reach $9.6 billion in revenue by 2027, with a 13.6% CAGR. Additionally, global spending on zero-trust security software and solutions is expected to grow from $27.4 billion in 2022 to $60.7 billion by 2027, achieving a CAGR of 17.3%.
IAM providers recognize the urgency of leveraging gen AI to counter the rising prevalence of malware-free attacks that often utilize sophisticated social engineering tactics. According to the CrowdStrike Threat Graph, attackers employing gen AI for the creation, launch, and monitoring of malware-free intrusions accounted for 71% of all detections. The latest Falcon Overwatch Threat Hunting Report highlights the primary focus of these attacks on identities:
“Upwards of 60% of interactive intrusions observed by OverWatch involved the use of valid credentials, which continue to be abused by adversaries to facilitate initial access and lateral movement.” – Param Singh, VP for Falcon OverWatch at CrowdStrike
Industry experts and investors recognize the importance of identity security in the future landscape. Ariel Tseitlin, a partner at Scale Venture Partners, emphasizes the significance of identity within the security realm due to the abundance of valuable data it holds. IAM has ascended to the second position in investment priorities, reflecting the growing concerns surrounding identity security in multicloud technology stacks. By closely collaborating with CISOs, IAM providers aim to address the gaps hindering organizations from achieving robust identity-first security. The primary focus lies in mitigating insider threats, as CISOs consistently express concerns about preventing breaches resulting from compromised credentials or insider attacks.
Product leaders across IAM providers actively develop comprehensive solutions to bridge the gap between identity and endpoint security, utilizing gen AI and sophisticated training models to enhance contextual intelligence. Traditional monitoring of network activities and identities falls short in detecting such threats, as attackers possessing legitimate IDs, access credentials, and admin rights can navigate infrastructure undetected. IAM providers recognize the severity of this threat and have implemented anomaly detection solutions powered by gen AI. By analyzing extensive datasets in real-time, these solutions excel in identifying unusual access patterns and potential breaches, significantly improving detection capabilities. IAM product roadmaps highlight the expansion of gen AI-based behavioral analysis for applications such as fraud detection, endpoint security, server and data center monitoring, and more. Notable providers in this space include CrowdStrike, CyberArk, Ivanti, Microsoft, Thales, Ping Identity, and others.
With insider threats remaining a top priority, IAM providers strive to enhance the accuracy and reliability of alerts, while also deploying decoy containers, shares, and assets to deter internal attackers. By leveraging gen AI, these providers actively work towards expediting the development of insider threat solutions within their product portfolios. Acquisitions within this space are expected, further indicative of the industry’s dedication to addressing this critical area of concern.
