From Compliance to Outcomes: Rethinking Identity Regulation in the AI Era

During Identiverse 2026, attendees had the opportunity to join a valuable discussion on the future of identity technologies and public policy, industry leaders from across the identity ecosystem came together to examine a growing challenge: the pace of technological innovation is accelerating faster than many regulatory frameworks can adapt.

Brian Krause The panel, “If You’re Not at the Table, You’re on the Menu: The Importance of Engagement to the Identity Technologies Industry in the Lawmaking Process,” featured perspectives from Brian Krause, CRO of Aware, Robert Tappan of the International Biometrics + Identity Association (IBIA), Hadley Sosnoff of Emergent Strategies, and Arielle Thomas of NEC Corporation.

Together, the panelists explored how legislation affecting biometrics, digital identity, artificial intelligence, and privacy can achieve its intended goals without unintentionally creating new risks, slowing innovation, or creating compliance challenges for organizations deploying these technologies at scale.

Among the themes discussed, one message stood out clearly: effective regulation requires meaningful engagement between lawmakers and the practitioners building, deploying, and managing identity technologies every day.

Identity Technologies Have Become Critical Infrastructure

For many government agencies and large enterprises, biometrics are no longer an emerging capability. They have become foundational infrastructure.

Just as organizations depend on compute, networking, and data storage platforms to operate, identity technologies increasingly serve as a core layer that enables secure access, service delivery, fraud prevention, and public trust.

As adoption expands, however, organizations face a new challenge: Identity ecosystems are becoming more complex.

Agencies often work with multiple biometric providers, diverse data sources, and evolving security requirements. According to a recent Aware research report, most organizations now rely on multiple biometric providers, averaging roughly three vendors per organization. Success now depends less on selecting a single technology and more on managing an entire identity platform. This shift requires a different mindset that prioritizes interoperability, orchestration, governance, and long-term adaptability over point solutions.

For policymakers, this distinction matters. Regulations designed around individual technologies may fail to reflect how modern identity environments actually operate. Frameworks should account for the reality that organizations increasingly rely on multiple systems working together rather than a single monolithic approach.

The Risk of Regulating for Today’s Threats

One of the most important challenges facing lawmakers is the speed at which fraud and attack techniques are evolving.

Artificial intelligence has dramatically changed the threat landscape. Deepfakes, synthetic identities, presentation attacks, and injection attacks are advancing rapidly, often faster than regulatory cycles can respond. 

This creates a difficult reality: regulations that prescribe specific technical approaches may become outdated before they are fully implemented.

Instead, policymakers should focus on desired outcomes rather than mandating particular technologies.

For example, security standards should emphasize measurable objectives such as fraud reduction, identity assurance levels, and resilience against identity-related attacks. Organizations can then evolve their defenses as new threats emerge without requiring constant legislative updates.

This outcome-based approach encourages innovation while maintaining accountability. It also gives agencies and organizations the flexibility to deploy new capabilities when adversaries inevitably change tactics.

In identity security, adaptability is often as important as the controls themselves.

Why Modern Identity Requires More Than a Single Verification Event

Another recurring theme throughout the discussion was the misconception that identity verification happens as a single transaction.

In reality, modern identity systems increasingly rely on layered risk signals and continuous decision-making.

Biometrics may be one component of a broader trust framework that also includes device intelligence, document verification, behavioral analysis, contextual signals, and risk scoring. These signals are often evaluated dynamically, allowing organizations to apply stronger verification only when risk levels warrant it.

This risk-based approach improves both security and user experience.

Rather than forcing every user through the same verification process, organizations can tailor authentication requirements based on context and risk. Low-risk interactions remain frictionless, while higher-risk activities trigger additional verification measures.

For lawmakers, this underscores the importance of avoiding one-size-fits-all compliance requirements. Regulations built around static verification models may inadvertently constrain more effective and adaptive security architectures.

When Good Intentions Create Unintended Consequences

Most legislation governing identity technologies is driven by legitimate concerns: protecting privacy, reducing misuse, increasing transparency, and safeguarding citizens.

However, even well-intentioned requirements can sometimes produce unintended outcomes.

Security is not static, and attackers continuously adapt. Regulations that lock organizations into specific verification methods or workflows may prevent them from deploying more effective defenses as threats evolve.

Similarly, mandated user friction can occasionally undermine security goals. If authentication requirements become overly burdensome, users often seek workarounds that weaken protections rather than strengthen them.

The challenge for policymakers is balancing safeguards with flexibility.

The most effective frameworks establish clear objectives and accountability mechanisms while allowing organizations to determine how best to meet those requirements using current technologies and evolving best practices.

Building Better Policy Through Collaboration

The identity industry and policymakers ultimately share many of the same goals: protecting individuals, strengthening security, preserving privacy, and fostering trust in digital interactions.

Achieving those goals requires ongoing dialogue rather than periodic consultation after legislative proposals are already drafted.

Technology practitioners can provide insight into operational realities, implementation challenges, emerging threats, and technical limitations that may not be obvious during the policy development process. Policymakers, in turn, can help establish consistent expectations and guardrails that support public trust.

The most durable and effective policies are often those informed by both perspectives.

As identity technologies continue to play an increasingly important role across government and the private sector, collaboration will become even more critical. The future of digital identity depends not only on technological innovation but also on ensuring that innovation and policy evolve together.

Because when the people building identity systems are part of the conversation from the beginning, everyone benefits—from lawmakers and agencies to businesses and the citizens they serve.

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Delaney Gembis
Aware, Inc.
781-687-0393
marketing@aware.com

About Aware
Aware, Inc. (NASDAQ: AWRE) is a proven global leader in biometric identity and authentication solutions. Its Awareness Platform transforms biometric data into actionable intelligence, empowering organizations to verify identities and prevent fraud with speed, accuracy, and confidence. Designed for mission-critical enterprise environments, the platform delivers intelligent, scalable architecture, real-time insights, and reliable security—ensuring precise identification when every millisecond matters. Aware is headquartered in Burlington, Massachusetts.

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