Hybridization, AI, and rising threats reshape IAM and PAM priorities
As enterprises accelerate hybrid work, cloud adoption, and AI-driven operations, privileged access and identity security are entering a decisive phase. In its newly released 2026 predictions, Leostream outlines how Identity and Access Management (IAM) and Privileged Access Management (PAM) will evolve amid mounting cyber threats, regulatory pressure, and operational complexity.
One of the most significant shifts expected in 2026 is the move of passwordless authentication from pilot projects into full-scale production, particularly in privileged environments. Hardware keys, passkeys, and biometrics are set to replace traditional credentials, reducing the risk posed by shared passwords and sprawling vaults. Compliance requirements and the high operational cost of managing credentials are accelerating this transition, while adaptive authentication policies will increasingly validate user identity and device posture in real time.
“Privileged access is no longer an IT issue alone—it’s a business risk that boards can’t afford to ignore.”
— Karen Gondoly, CEO, Leostream
Artificial intelligence will also play a more active role in securing privileged sessions. Rather than acting as a passive monitoring layer, AI-driven security will analyze behavior patterns, detect anomalies, and automatically enforce controls such as session termination, masking, or step-up authentication. Generative AI will further help security teams by summarizing risky activities, flagging lateral movement, and recommending remediation in real time, pushing IAM and PAM toward autonomous governance models.
Another major trend is the rise of browser-based and clientless privileged access. Organizations are moving away from heavy clients and VPN dependencies, enabling secure access through hardened browsers with built-in credential injection, clipboard controls, and keystroke isolation. This approach reduces endpoint risk, simplifies third-party onboarding, and supports a workforce that operates from anywhere, on any device.
Threat-driven urgency is also elevating privileged access to the boardroom. With compromised administrative credentials remaining a primary attack vector in ransomware and supply-chain breaches, enterprises are placing stronger emphasis on vendor privileged access. PAM for external contractors and service providers is increasingly viewed as a core resilience capability, not just a compliance requirement.
Finally, Leostream highlights the “hybridization of everything”—infrastructure, users, and identities. As organizations juggle on-premise systems, cloud platforms, employees, vendors, and machine identities, the need for unified, zero-trust-aligned access solutions will intensify in 2026 and beyond.