Australian leaders see AI as risk & opportunity, identity gaps grow

Cybersecurity has climbed the corporate agenda in Australia, with most IT and security leaders confirming it is now a boardroom issue. However, new research released at the Okta Identity Summits has highlighted a persistent gap: the identity security of non-human actors such as bots, APIs, and service accounts in the age of artificial intelligence (AI).

The findings come from recent polling conducted by Okta, presented to hundreds of technology leaders at the company's summits in Sydney and Melbourne. The events focused on the changing landscape of identity-first security in an environment increasingly driven by AI and automation.

While the majority of organisations are advancing discussions on cybersecurity at the highest levels, the research revealed a lack of clear strategies for managing identities that underpin digital systems—particularly those belonging to machines rather than people.

The poll of IT, security, and business leaders across Australia found that 69 per cent now see security as a concern for boards, rather than just an IT issue or a matter for reactive measures. At the same time, just one in five leaders surveyed said their organisation has a clear approach to managing the identities of both human and non-human users.

"It's encouraging to see identity security elevated to a board level discussion, but awareness must be matched with action," said Mike Reddie, Vice President and General Manager Australia and New Zealand at Okta.

"With AI accelerating across the enterprise, Australian organisations need modern identity frameworks that secure every user, human or machine, without compromising agility," Reddie added.

The research underscored the strategic shift taking place. Of those surveyed, 69 per cent agreed that cybersecurity is now firmly on the board agenda. This move signals that organisations recognise the potential consequences of security incidents, from reputational damage to financial loss, in a digital world.

However, while the issue is now being addressed at the highest levels, the poll found organisations are only at the beginning of securing all the identities that make up their digital environments.

AI has emerged as a pivotal force, both as a strategic opportunity and a potential threat. According to Okta's findings, 51 per cent of Australian IT and security leaders view AI and Agentic AI as a dual opportunity and risk for their organisations. Meanwhile, 25 per cent reported that their organisations are already experimenting with or deploying AI tools, signalling rapid adoption of new technologies.

Despite this, the management of non-human identities appears to be lagging. Okta's poll revealed that only one in five organisations currently have a clear strategy in place for machine identities, even as the use of AI and automation becomes more prevalent. This leaves a significant proportion of organisations exposed to risks associated with unprotected bots, APIs, and service accounts—elements that are critical for digital business operations but are often overlooked in security planning.

The majority of identity security initiatives remain focused on people. According to the research, 25 per cent of respondents said their identity security efforts are currently limited to human users, with machine identities yet to be addressed. This focus on human users may leave a gap as automation expands within enterprises, increasing the risk that non-human actors could be exploited if not properly secured.

The Okta Identity Summits, where the research was presented, brought together hundreds of IT and security leaders. The events explored how identity can be used to drive not only better security but also compliance and improved user experiences, as organisations contend with increasingly complex digital ecosystems.

Reddie emphasised the need for organisations to act, noting the risks of falling behind as AI adoption accelerates. "With AI accelerating across the enterprise, Australian organisations need modern identity frameworks that secure every user, human or machine, without compromising agility," he said.

The findings illustrate a landscape in which organisations are aware of the risks and opportunities presented by AI, and have started the journey towards identity-first security. However, the research also highlights that, for many, this journey is only just beginning. Boards are now taking cybersecurity seriously, but a large proportion of organisations are yet to implement comprehensive strategies that secure all identities within their digital environment.

As the nature of threats evolves and the digital enterprise becomes more complex, the poll suggests Australian organisations will need to broaden their identity security focus beyond just human users to effectively safeguard their systems. The coming months and years will likely test how quickly boards and security leaders can bridge the gap between awareness and action, particularly as AI continues to reshape the business and security landscape.

Okta describes itself as the World's Identity Company, securing identity so everyone is free to safely use any technology. Its customer and workforce solutions are intended to help businesses and developers use identity to drive security, efficiency, and success, while protecting users, employees, and partners.

The poll findings suggest that, while progress has been made at the board level, Australian organisations have more work ahead to ensure identity security frameworks keep pace with technological change—especially in the age of AI.