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The Password Problem: Why Our Current Approach Is Failing
In today’s digital world, passwords remain our most prevalent line of defense, yet they’re often far from foolproof. Most of us are guilty of choosing passwords like “Buddy123” (your dog’s name and a number) or “Emma2008” (your kid’s birth year for “extra” security). These memorable but weak passwords are easy for hackers to guess, and paradoxically, the more stringent password requirements become - demanding capital letters, numbers, and symbols - the more likely we are to reuse that one “good” password everywhere or, worse yet, write it down on sticky notes or in unsecure locations. With around 85% of people reusing passwords across multiple accounts, it’s no surprise that nearly 80% of data breaches involve compromised credentials.
Looking to the future, our reliance on passwords will face even greater challenges as we begin using AI agents to access websites and services on our behalf. Imagine an AI agent you trust to sign in to your bank account to check your balance, log in to Amazon to make a quick purchase, or access your airline account to confirm your departure time. These AI-driven interactions may soon become part of everyday life, handling tasks that would otherwise require our constant attention and time.
However, this shift introduces new risks. Entrusting an AI agent with your passwords is risky: any security flaw or vulnerability in the agent could expose all associated accounts. If compromised, an AI agent with static credentials could lead to a cascading security breach across multiple platforms, putting personal information, financial details, and even critical travel information at risk. Secure authentication is also critical in helping AI companies stop bot attacks that abuse free tiers or credits by creating several free accounts by entering randomly generated passwords. For CIAM (Customer Identity and Access Management) solutions to adapt to this future, they must evolve beyond traditional passwords and embrace more secure, adaptive methods that allow AI agents to access accounts without static credentials. This evolution is essential to create a safe digital environment that supports AI-driven interactions without compromising user security.
The Transition to Passwordless Authentication
A significant shift is already underway, from traditional passwords to passwordless solutions which offer both better security and a smoother user experience. Passwordless methods such as Social SSO (OAuth), biometrics / passkeys, and magic links are gaining traction, enabling users to authenticate with minimal hassle. This approach reduces the cognitive load of remembering complex passwords and eliminates the need for risky practices like reusing passwords across multiple accounts.
Social SSO, for example, allows users to sign in with existing accounts on platforms like Google or Facebook, streamlining the login experience and reducing the number of credentials users need to manage. Biometrics - like facial recognition and fingerprints - are becoming more popular, particularly in mobile and banking applications, as they’re both secure and easy for users to interact with. Passkeys have taken the benefits of biometric authentication mainstream, with companies like GitHub, Best Buy, Walmart, Shopify, and several others adopting the user-friendly and secure auth method. Magic links, which allow users to log in through a unique link sent to their email, provide a similar passwordless experience without requiring dedicated apps or hardware.
Historically, companies like Auth0 (now part of Okta) and Duo (acquired by Cisco) were pioneers in building strong, secure authentication systems, making multi-factor authentication (MFA) accessible and effective for enterprises. Auth0 streamlined identity management with flexible, developer-friendly integrations, while Duo focused on strengthening security with easy-to-deploy MFA solutions. However, as these companies have grown and focused on scaling their existing offerings, a new generation of companies is leading the charge into the passwordless future.
New entrants like Descope, Stytch, Clerk and others are bringing fresh energy and innovation to the passwordless space. Designed with adaptability and ease of integration in mind, these platforms are building passwordless authentication as a standard, focusing on developer-friendly solutions that meet the needs of rapidly evolving digital environments. These new players are well-positioned to lead the industry forward, making passwordless authentication the default and paving the way for even more advanced, AI-integrated security solutions in the future.
AI will soon change the interface of most user interactions on the Internet. We will not point and click, but rather just ask a chatbot for what we need. Every organization will also soon have a natural language interface fed with their custom data, and many automated services and chatbots will converse with each other to share information. In such environments, making authentication and authorization checks - for both human and non-human identities - before sharing sensitive information is vital.
- Slavik Markovich, CEO & Co-Founder of Descope
Adapting for AI: Delegation and Future-Proof, In-Context Authentication Agent Access
As we move toward this new paradigm of digital access - one where AI agents play a role in logging in and interacting with services on our behalf - CIAM solutions will need to adapt even further. Rather than just enabling a more secure authentication flow for humans, a new need arises – agent accessibility and delegation of privileges.
In an agent-driven future, B2C platforms will face a transformative shift in how they enable user engagement. While nearly all B2B apps today offer customer-facing APIs to facilitate automated interactions, consumer platforms have remained browser-centric. This dynamic will need to change as agents begin accessing products and services on behalf of users, requiring APIs to serve as an additional "front door" to these platforms. This shift won’t just enhance accessibility for agents—it will redefine CIAM solutions.
As AI agents take over more tasks, a robust authorization and delegation framework becomes essential - one that grants agents appropriate access without exposing sensitive credentials or compromising security. This system must ensure that access is both limited in scope and dynamic, allowing for fine-grained control, revocation, and monitoring to prevent misuse or cascading failures in the event of a breach – authorization systems must evolve in their complexity to account for both human permissions, and enabling agents to access a more restrictive set of functionalities on their behalf.
In addition, implementing authentication and MFA “in context” becomes important: for example, enforcing a magic link auth check when a user asks for test results from a chatbot on a medical / diagnostic company’s app. By addressing these needs, CIAM can pave the way for a future where AI-driven interactions are both seamless and secure.
Conclusion: The Path to a Secure Digital Future
The evolution of authentication systems is not just about replacing passwords; it’s about rethinking how we access and protect our digital lives in an AI-driven world. From weak passwords and data breaches to passwordless innovations and secure delegation, the journey to a safer, more efficient future is underway. By embracing adaptive CIAM solutions, integrating passwordless technologies, and building robust frameworks for AI access and delegation, we can ensure that tomorrow’s digital interactions are secure, seamless, and ready for the challenges ahead.
