2026: Ushering in a new era of adaptive identity that is business-critical

As Australia accelerates its digital transformation, the traditional security perimeter has dissolved. Identity security is now the new control point, and it's under siege from all sides.

Whether it's human users, machine identities or AI agents, the number of access points has exploded, with bad actors more than ready to exploit this vulnerability. High-profile breaches, including those linked to the Scattered LAPSUS$ Hunters group, underscore just how quickly unmanaged access can escalate into reputational and financial damage. Clearly, traditional approaches to identity governance - static, reactive, and overly reliant on manual processes - can no longer keep pace.

This is where adaptive identity becomes critical. Adaptive identity is about securing enterprises efficiently and effectively in a dynamic world. It provides a way forward by unifying identity, data, and security signals to deliver continuous, contextual protection. This enables organisations to manage risk and maintain trust as they navigate increasingly complex access environments across both the public and private sectors.

Here's why adaptive identity will become business-critical in 2026 and beyond:   

Every identity is now privileged

In the past, only select users had privileged access. Today, every identity can perform high-impact actions. Think of a payroll bot approving salary payments, or a junior analyst with API access to sensitive data. Risk doesn't live in titles anymore; it lives in context. Adaptive identity reframes access through this lens - who is requesting access, when, from where, and why - allowing security decisions to adjust in real time.

AI is a threat and a tool

AI is fuelling the surge in non-human identities and enabling adversaries to launch faster, more complex attacks. But it's also our strongest ally. By integrating AI into identity security platforms, we can shift from reacting to threats to anticipating them. Imagine automatically detecting when an AI agent behaves unusually or when dormant machine identities suddenly become active. Adaptive systems respond instantly, freezing risky access without disrupting business.

Zero trust needs a brain

Australian organisations have widely embraced zero trust in principle, but many struggle to operationalise it. That's because zero trust goes beyond architecture; it requires intelligent enforcement to work effectively. Adaptive identity is the intelligent layer that makes zero trust real. It enforces least privilege dynamically, delivers just-in-time access, and learns continuously from behavioural signals.

The governance gap is widening

While 82% of enterprises now use AI agents, fewer than half have governance policies in place. A staggering 75% of machine identities lack a designated owner. These gaps leave critical access pathways unmonitored, each one representing a potential breach. Adaptive identity closes these gaps by providing real-time visibility and control across all identity types.

Business leaders must lead the charge

CISOs alone cannot drive this change. Adaptive identity goes beyond being a security initiative and is a strategic enabler for business growth. It underpins resilience, supports compliance with evolving regulations like Australia's Privacy Act reforms, and builds digital trust with customers and citizens. Forward-looking CIOs and boards must treat identity security as strategic infrastructure.

Five steps to get started in 2026

1. Map every identity - human and machine - and understand who has access to what.
2. Automate the basics - like certification and access control - to reduce risk and manual error.
3. Prioritise high-risk identities and entitlements with just-in-time provisioning.
4. Break down silos across IT, security, compliance, and business teams.
5. Invest in adaptive platforms that unify identity, data, and security context.

The bottom line

Identity security has moved beyond being an IT concern. It is now the foundation of modern enterprise security. In 2026, those leading the way will be the ones who take charge to manage AI and digital identities early, not those left scrambling. Adaptive identity is no longer a future goal. It is the approach organisations need right now.