AI identity threats top executive concern, preparedness lags

A new report from The Identity Underground reveals a stark disconnect, with 54% of executives naming AI-enhanced identity threats as their top concern for 2026, yet only 3% feel "very prepared" to defend against such attacks, according to Channel Insider.

The 2026 Annual Pulse report, surveying over 150 identity security leaders, identifies legacy infrastructure and manual processes as primary barriers, with 82% of respondents stating legacy systems actively create identity security risks. Particular challenges include outdated NTLM authentication, cited by 61% as enabling lateral movement, and the rapid proliferation of non-human identities, like API keys and service accounts, which most organizations cannot fully inventory. Simon Moffatt, founder of The Cyber Hut, noted that identity systems "were never designed for today's threat landscape," leading to fragmented security where privilege misuse spreads faster than teams can respond.

In response, 55% of organizations are implementing unified identity security platforms for centralized visibility, while 69% are deploying SIEM with identity analytics. Additional measures include stronger segregation of privileged access and adoption of just-in-time access strategies.