As artificial intelligence evolves from experimental projects to autonomous systems actively engaging within organizations, Israeli cybersecurity innovators are focusing on a pressing challenge: managing permissions for both human and non-human entities. Instead of merely defending networks against hackers, the next security frontier lies in regulating the actions of AI agents, software bots, and autonomous systems that have the potential to access sensitive corporate data and execute critical workflows.
Emerging Identity Solutions for the AI Age
A growing number of Israeli startups, mostly founded by experts from the nation’s leading cybersecurity firms, are eager to create the identity frameworks suited for the AI-driven landscape. They highlight that current identity verification systems were developed primarily for human employees interacting with applications. This approach is insufficient for the future, where AI agents and automated systems will become prevalent, accessing multiple applications simultaneously to perform tasks like data analysis and operational decision-making.
Investor interest in identity management and AI security is on the rise, with Israeli startups securing substantial funding. In 2026 alone, these companies attracted hundreds of millions of dollars as established cybersecurity firms recognize the opportunity within this burgeoning market. A significant indicator of this shift was Cyera’s acquisition of Oasis Security for $1 billion, pinpointing the urgency to secure identities of non-human entities—like software applications and AI agents—within corporate settings.
Revisiting Traditional Identity Security
Historically, identity security has primarily centered on answering the question: “Who is accessing the system?” Organizations have heavily invested in technologies to authenticate users, manage permissions, and prevent unauthorized access. However, the emergence of AI changes the paradigm. AI systems often require extensive access to numerous applications to complete their tasks. They possess the capability to operate continuously while making critical decisions that were once solely the purview of human employees, amplifying the complexity surrounding security measures.
To address these new challenges, firms must determine not just if an AI agent is authorized to access a system but also whether it should perform a certain action at a specific time. Israeli startups are advocating that existing identity management platforms are ill-equipped for this modern landscape. NewCore, for instance, has recently garnered attention after emerging from stealth mode with a substantial $66 million in funding aimed at revolutionizing identity security specifically for AI applications.
The Future of Identity Management
NewCore, co-founded by notable figures in the industry, aims to establish a comprehensive approach to identity management, competing directly with stalwarts like Microsoft and Okta. The startup contends that businesses have accumulated fragmented identity systems tailored to human employees, rendering them ineffective for managing AI systems. To remain resilient against security threats, a cohesive strategy that can handle human, machine, and AI identities is essential.
Oasis Security’s acquisition underscores the growing significance of managing non-human identities, while other startups such as Oak and Linx Security are also positioning themselves within this new sector. Oak is developing an AI-native identity operating system capable of managing diverse identities from one platform, and Linx aims to replicate the success of cloud security company Wiz by providing robust identity solutions tailored for AI challenges.
As companies increasingly integrate AI into their core operations, questions about the identity and permissions of these systems become critical. Startups like Venice are innovating dynamic access controls to ensure that permissions adapt in real-time based on context and risk. Meanwhile, additional players like Hush Security and Offroad are focusing on specific aspects of AI governance, emphasizing the rapid emergence of a new cybersecurity category that prioritizes AI identity management and access controls.
With these innovations, a framework for governing AI identities is taking shape, addressing a crucial aspect of modern cybersecurity. The landscape is shifting dynamically as organizations recognize the importance of meticulously managing AI-driven activities alongside traditional security measures, paving the way for a more secure digital future.