How Machine Identity Risks Are Escalating in AI-Powered Enterprises

81% of security leaders agree that securing machine identities is essential for the future of AI.

MITSloan ME Editorial March 18, 2025 Reading Time: 3 Min

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The rapid expansion of machine identities is creating new security challenges for organizations, driven by the accelerating adoption of artificial intelligence (AI) and the growing reliance on cloud-native technologies. CyberArk’s newly released 2025 State of Machine Identity Security Report sheds light on this increasing risk, revealing a significant rise in machine identity-related security incidents and highlighting the urgent need for better protection strategies.

According to the report, 72% of organizations experienced at least one certificate-related outage in the past year, a stark rise from previous years. Moreover, 50% of security leaders reported security incidents or breaches tied to compromised machine identities, underscoring the critical role these non-human identities play in enterprise security.

The Expanding Threat Landscape

Machine identities—including certificates, cryptographic keys, secrets, and access tokens—have proliferated in response to AI’s widespread integration, cloud innovation, and increasingly shorter machine identity lifespans. With 79% of security leaders expecting machine identities in their organizations to grow by as much as 150% over the next year, the challenge of securing them is only intensifying.

“The explosion of machine identities is creating new vulnerabilities that adversaries are eager to exploit,” said Kurt Sand, General Manager of Machine Identity Security at CyberArk. “From API keys to code-signing certificates, cybercriminals are targeting these non-human credentials to infiltrate systems and disrupt operations. Organizations must take a proactive approach to securing machine identities before the risks spiral out of control.”

AI and Machine Identity Security: A Critical Intersection

AI systems are emerging as key targets for cyberattacks, with 81% of security leaders agreeing that securing machine identities is essential for the future of AI. As machine learning models grow more complex and valuable, ensuring proper authentication and authorization of machine identities has become a top priority.

Furthermore, 79% of security leaders recognize that safeguarding AI models from manipulation and theft necessitates stronger machine identity security frameworks. Without a comprehensive approach, organizations risk unauthorized access, data breaches, and operational disruptions.

Organizational Struggles with Machine Identity Management

Despite the growing awareness of machine identity security, organizations struggle with implementing mature and cohesive security programs. The report found that while 92% of security leaders claim to have some form of machine identity security program, these initiatives often lack maturity and consistency.

Among the key challenges highlighted:

42% of respondents cited a lack of cohesive machine identity security strategy as a major concern.
37% pointed to difficulties in adapting to shorter machine identity lifecycles.
37% expressed fears that adversaries could exploit stolen machine identities.

Adding to these challenges, responsibilities for machine identity security remain fragmented, with security teams (53%), development teams (28%), and platform teams (14%) all playing separate roles. This siloed approach creates inefficiencies and increases the likelihood of vulnerabilities slipping through the cracks.

The Path Forward

To combat these risks, CyberArk’s research emphasizes the need for an end-to-end machine identity security strategy. Organizations must implement intelligent privilege controls, continuous monitoring, and automation to ensure that machine identities are properly managed throughout their lifecycle.

With the looming threats of AI exploitation and quantum attacks on the horizon, security leaders cannot afford to overlook the importance of machine identity security. By proactively securing these non-human identities, organizations can fortify their defenses against evolving cyber threats and ensure resilience in an increasingly digital world.

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