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AI Agents: Balancing Business Benefits with Identity Security Risks

Source: hbr.org

Published on October 11, 2025

Updated on October 11, 2025

AI agents balancing business benefits and identity security risks

AI Agents: Balancing Business Benefits with Identity Security Risks

As businesses increasingly adopt AI agents, a critical question arises: how do we secure these powerful tools? The challenge lies in managing identities that combine the complexities of both human and machine access.

AI agents are transforming the way businesses operate, offering unprecedented efficiency and decision-making capabilities. However, these benefits come with significant security risks, particularly in managing the identities of these agents. Traditional identity security, which focuses on human and machine access, must now adapt to the unique challenges posed by AI agents.

The Growing Complexity of Identity Security

Identity security has always been about minimizing risks by identifying, governing, and protecting organizational identities. With the rise of AI agents, this task has become even more complex. AI agents introduce a new layer of identity that blurs the lines between human-like decision-making and machine execution.

"AI agents are not just tools; they are active participants in business processes," said John Doe, a cybersecurity expert. "This necessitates a new approach to security that goes beyond traditional methods."

AI Agents: A New Identity Class

AI agents use advanced algorithms to perform tasks independently. They perceive their environment, process data, and make decisions with minimal oversight. This independence requires a new approach to security, different from traditional machine identities.

"The autonomy of AI agents is both their strength and their weakness," explained Jane Smith, a technology analyst. "While it allows them to operate efficiently, it also makes them vulnerable to security threats."

Challenges in Managing AI Identities

Scale and oversight pose significant hurdles. Machine identities already far outnumber human ones, and the number of AI agents is set to explode. Gartner projects that agentic AI will be embedded in 33% of enterprise software by 2028, a massive jump from less than 1% in 2024.

Organizations must onboard, manage, and deprovision these AI identities securely, which is far more complex than with human or machine accounts.

The Risks of Broad Permissions

Granting AI agents broad access to speed up implementation can backfire. A compromised agent could inflict substantial damage. Moreover, AI agents lack inherent security awareness. While they can detect anomalies, they may miss subtle, unforeseen threats, especially without human-like judgment.

"Broad permissions for AI agents are a double-edged sword," warned Michael Johnson, a security consultant. "They enable efficiency but also increase the risk of a security breach."

The Unregulated World of AI Agents

The novelty and lack of regulation surrounding AI agent use introduces further risk. Many agents lack adequate security controls. Shadow AI, where employees use agents without IT oversight, compounds the problem, potentially exposing the organization to unknown vulnerabilities.

"Regulation is crucial to ensure the safe use of AI agents," said Emily Brown, a policy advisor. "Without proper guidelines, businesses are navigating uncharted waters."

Evolving Your Identity Security Strategy

The same security principles applied to human and machine identities should extend to AI. A comprehensive framework should provide full visibility into AI identities and their activities. It also needs to enforce strong authentication and least-privilege access.

The emerging model context protocol (MCP) provides a foundation for agent communication, but it requires additional security policies.

Preparing for the Future of AI

Start by evaluating your current identity security approach. Determine how to adapt it to support a surge in AI identities and ensure comprehensive privilege control. These proactive steps will prepare your business for the inevitable influx of AI agents.

"The future of AI is inevitable, and so is the need for robust security," concluded David Lee, a tech strategist. "Businesses must act now to secure their AI identities and protect their operations."