What is the story about?
What's Happening?
Okta has announced new capabilities to secure the increasing use of AI agents within enterprises. These updates were revealed at the Oktane 2025 conference in Las Vegas, focusing on expanding the Okta and Auth0 platforms to integrate AI agents securely. The identity security fabric aims to manage both human and non-human identities, addressing the risks posed by AI agents that require broad access privileges. Kristen Swanson, Okta's senior vice-president of design and research, highlighted the need for a unified identity security fabric to reduce the attack surface. The new features, Okta for AI Agents, provide end-to-end visibility, control, and governance for non-human identities, including service accounts and API keys. Additionally, Okta launched Cross App Access (XAA), an open standard to secure communication between applications and AI agents, supported by industry leaders like AWS and Grammarly.
Why It's Important?
The introduction of Okta's identity fabric is significant as it addresses the security challenges posed by the rapid adoption of AI agents in enterprises. With 91% of organizations using AI agents, but only 10% having a defined strategy to govern them, the risk of security breaches is high. The new capabilities aim to mitigate these risks by providing a consistent framework for AI agent authentication and access. This development is crucial for businesses investing in AI and automation, ensuring that their systems remain secure and compliant with regulations. The support from major industry players for the Cross App Access standard indicates a move towards more secure and seamless integration of AI agents across systems.
What's Next?
Okta's new features for AI agents are expected to enter early access in early 2027, with the Verifiable Digital Credentials platform following in late 2026. As AI adoption continues to surge, businesses will likely face increased scrutiny from regulators and boards, emphasizing the need for robust identity and access controls. The implementation of these new security measures will be critical for organizations to maintain compliance with regulations such as APRA's CPS 234 and the Cyber Security Act 2024, which hold directors accountable for cyber resilience and data protection.
Beyond the Headlines
The broader implications of Okta's identity fabric include potential shifts in how enterprises approach identity management and security. By unifying identity solutions and reducing silos, organizations can enhance their overall security posture and reduce vulnerabilities. The focus on AI-powered fraud prevention through tamper-proof digital credentials also highlights the growing importance of digital identity verification in safeguarding against identity theft and fraud. As AI continues to transform the workplace, the need for comprehensive identity governance frameworks will become increasingly critical.
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