Zurich – December 2023 – Artificial intelligence (AI) was the buzzword of 2023. Discussions about the technology range from possible application scenarios such as optimising business processes to safeguarding privacy policies. According to a study by the Federal Statistical Office of Germany, twelve per cent of companies in Germany are already using AI. Large companies in particular, rather than small and medium-sized enterprises, are making increasing use of the new technology. The numbers show that AI is mainly used in the area of financial management. Looking to the future, AI will also play an increasingly important role in identity management and authentication (CIAM). Indeed, it is already an integral component, especially for fraud detection and preventing account takeovers (ATOs). This mainly involves the use of context information such as geolocation and device fingerprints to calculate a risk score with the help of AI algorithms. These scores are used to control the login flow, trigger step-up procedures or stop suspicious sessions. Biometric authentication procedures such as facial recognition or digital onboarding routines rely on AI.
Stephan Schweizer, CEO of Nevis Security AG, outlines the opportunities and challenges presented by the combination of AI and CIAM.
- New use cases and improved customer journeys
The latest trends in the area of artificial intelligence revolve around generative AI and large language models, which are increasingly used in chatbots. This could radically change the user interfaces of the future – with chatbots not only controlling the content but also taking users, authorizations and risk profile into account. This opens up new opportunities for the use of chatbots and new customer journeys. The implementation of AI-based approaches allows companies to establish a flexible and adaptable system for identity management and authentication. This not only enhances security but also improves the user experience.
- Improved accessibility from a privacy perspective
Accessibility is improved by AI and, in particular, by large language models (LLMs) that can process language. In the future, role-based authorisation models in chatbots could lead to the further customisation of this interaction. Based on a user profile and the associated authorisations, the AI can decide autonomously which content should be displayed to ensure a personalised user experience. At the same time, the need for privacy protection should not be disregarded. If AI is used for personalisation and marketing purposes, it is vital that the applicable data protection regulations such as the General Data Protection Regulation (GDPR) are observed.
- Digitalising customer interactions
AI automates the routine tasks used in identity management, such as checking user requests, updating user profiles and resetting passwords. This reduces the manual workload and implements more efficient processes. Users, on the other hand, can perform specific identity and authentication tasks themselves without the need for human support, which improves both the user experience and efficiency.
- Cost optimisation on the process side
Since they can handle many requests automatically, AI-based systems can reduce the need for customer support. This conserves resources and shortens the processing times for requests and transactions. It makes sense to implement both systems to increase efficiency. In many cases, AI-based authentication systems can be scaled up to process large numbers of authentication requests simultaneously. This is especially important for companies that handle high transaction volumes – allowing them to scale up their services effectively and efficiently.
- Long-term competitive advantage
By implementing AI in CIAM systems, companies can not only deliver an improved user experience that boosts customer satisfaction and loyalty but can also ensure their capacity for innovation. By becoming early adopters of the technology, they can strengthen their innovative capabilities. The combination of both factors also enables a flexible response to new challenges and market trends. It also offers greater resilience against security threats. Proactive risk assessment and automatic adaptation of authentication allow cyber threats to be detected and repelled more quickly.
AI is a useful tool that opens up new possibilities. Companies that ignore AI are at risk of falling behind in the long term. The appropriate use of AI in CIAM systems can enhance security, optimise processes and create competitive advantages. However, companies should ensure that AI-powered CIAM systems are transparent and understandable to gain the trust of users. Since customers prefer convenient and secure solutions, clear communication about the functionality of AI systems is key.
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About Nevis Security AG
Nevis is an international provider and the Swiss market leader for customer identity and access management (CIAM) solutions. Its portfolio includes passwordless logins that are intuitive to use and offer maximum security for user data. Across the globe, companies in the financial, healthcare, insurance and iGaming sectors as well as public authorities and industrial enterprises rely on solutions from Nevis. Digital identity verification, either on-premise or in the cloud, guarantees secure and user-friendly authentication. More than 80 per cent of all online banking transactions in Switzerland are secured with the help of Nevis technology. With its headquarters in Zurich/Switzerland, the security specialist also has offices in Germany, the UK and Hungary. Learn more at www.nevis.net.
