WSO2’s new IAM updates unlock agent identities and regional security enhancements for AI and B2B applications

WSO2 releases major upgrades to its IAM suite, integrating agent identities with Model Context Protocol, boosting AI security, and enhancing B2B enterprise controls amid growing regional compliance demands.

WSO2 has launched significant enhancements across its identity and access management (IAM) product family, focusing on the burgeoning needs of secure AI-driven applications and complex business-to-business (B2B) scenarios. The latest releases of WSO2 Identity Server open-source software and Asgardeo identity as a service (IDaaS) introduce innovative agentic IAM capabilities that treat AI agents as full-fledged identities, accelerating the deployment of secure AI agents by supporting the Model Context Protocol (MCP) authorization framework. This development reflects WSO2’s commitment to empowering developers to meet the increasing demands for secure, intelligent digital experiences delivered via AI or traditional applications.

The new agent identity management functionality enables organisations to register, manage, and assign roles and privileges to AI agents, issue credentials and tokens for their secure communication, and independently audit their activities. The inclusion of MCP authorization supports precise control over MCP servers and clients, ensuring robust governance and security when AI agents access corporate resources. This is a pioneering step since MCP is emerging as a vital protocol for enabling AI agent interactions within enterprise environments.

In parallel, WSO2’s latest IAM updates enhance developer productivity through AI-driven automation. This includes AI-assisted user flow orchestration deploying no-code, drag-and-drop tools for designing user journeys like self-registration and password recovery, as well as AI-driven MCP authorization set-up, which simplifies complex security implementations such as multi-factor authentication and user provisioning. These capabilities enable developers to reduce errors and speed up the creation of secure AI-powered applications without needing extensive IAM expertise.

WSO2 continues to reinforce its leadership in B2B customer IAM (CIAM) by improving support for complex organisational hierarchies and granular access control. Enterprises can now more easily manage multi-level enterprise structures—such as distributors, subsidiaries, and franchises—with streamlined login and registration settings inherited across sub-organisations but flexible enough for customisation. Additionally, selective role sharing allows organisations to finely control which roles or application portions are shared with partners or subsidiaries, aligning access with service tiers or pricing.

Security enhancements in the new releases cover real-time event publishing for identity activities, flexible advanced account linking beyond standard attributes, and a revamped workflow approval framework supporting lengthy and critical operations. There is also expanded support for European digital identity solutions, including Signicat, FranceConnect, and Swiss ID, addressing growing demands for regional compliance. Furthermore, post-quantum security measures now protect both inbound and outbound communications, future-proofing data against potential quantum computing threats.

WSO2’s dual offering of Identity Server—available as open-source software—and Asgardeo—which comes in both multitenant and private SaaS versions—continues to provide customers with unparalleled flexibility. Organisations can migrate seamlessly between cloud, on-premises, and hybrid deployments while maintaining consistent user and developer experiences. Collectively, WSO2 products manage more than one billion identities globally across consumer, B2B, and government IAM scenarios.

Founded in 2005, WSO2 is recognised as a major independent player in the open-source IAM market worldwide. Its AI-powered, API-first approach frees enterprises from vendor lock-in, enabling rapid iteration and secure deployment of next-generation digital services.

The new features in WSO2 Identity Server 7.2 and the latest Asgardeo release are generally available now. Developers and organisations can download the software or trial Asgardeo IDaaS to explore the expanded capabilities designed to secure and accelerate AI and B2B identity management demands.

📌 Reference Map:

• Paragraph 1 – ^[1] (BizpreneurME), ^[2] (WSO2 official news)
• Paragraph 2 – ^[1] (BizpreneurME), ^[4] (WSO2 IAM AI overview)
• Paragraph 3 – ^[1] (BizpreneurME), ^[3] (WSO2 AI-driven automation news)
• Paragraph 4 – ^[1] (BizpreneurME), ^[2] (WSO2 official news)
• Paragraph 5 – ^[1] (BizpreneurME), ^[2] (WSO2 official news)
• Paragraph 6 – ^[1] (BizpreneurME), ^[7] (WSO2 IAM overview)
• Paragraph 7 – ^[1] (BizpreneurME), ^[6] (Open Group Identity Server overview)

Source: Fuse Wire Services