Top Hurdles Holding Back Higher Education IAM Automation in 2025

The 2025 EDUCAUSE Horizon Report highlights the latest trends in higher education identity and access management (IAM) and confirms several ongoing challenges.  Fortunately, automation can solve many of these problems and that is good news, since colleges and universities, with their unique IAM needs, are ideal candidates for it.  Unfortunately, due to obstacles faced by many of higher education, that automation panacea remains out of reach for most. The following hurdles are holding back critical growth for identity and access management in higher education and overcoming them will be crucial for success in the future. 

What’s Holding Back IAM in Universities and Colleges?

Budget Constraints and Technological Priorities

Higher education institutions have faced ongoing budget cuts since before the COVID-19 pandemic, with financial pressures continuing in recent years. Many colleges and universities are prioritizing initiatives such as hybrid learning technology, artificial intelligence (AI), and cloud migration over upgrades to identity and access management (IAM) systems.  Additionally, projects like federated identity systems are frequently delayed because of limited funding.  

According to the 2025 EDUCAUSE Horizon Report, economic pressures are tightening budgets and forcing institutions to focus on top priorities. While there’s no quick fix, clearly demonstrating the long-term value of IAM automation, like cost savings, efficiency, and fewer errors, can help gain support for adoption.

Shadow IT

1. Unapproved Tech Use: Faculty and staff are adopting AI tools, cloud apps, and collaboration platforms without IT oversight.         
2. IAM Bypass: These tools often operate outside institutional identity and access management (IAM) systems. 
3. Data at Risk: Sensitive research or student information can be exposed unintentionally.
   
4. Cybersecurity Threat: These unmanaged tools create vulnerabilities that cybercriminals can exploit.
5. What’s Needed: Stronger IAM integration and clear policies to manage and secure new tech adoption. 

The 2025 EDUCAUSE Horizon Report identifies these as a growing and critical issue for higher education institutions.  However, as AI adoption increases, some of these issues are further amplified. While most organizations understand the risks of shadow IT, advancements in AI are throwing fuel on that fire. Faculty often choose these tools for convenience, especially when institutional systems are outdated or slow to adopt new tech. Unfortunately, a uniformed selection of the wrong AI tool can expose sensitive research due to weak restrictions. 3.

Slow Zero Trust Adoption  

1️. Cultural Conflict: Higher ed institutions value open access and the belief that “information should be free,” which clashes with Zero Trust’s principle of least-privileged access. 

2. Delayed Adoption: This ideological divide often slows down Zero Trust implementation compared to more restrictive corporate environments.

3. Complex Security Needs: Balancing the protection of sensitive data (e.g., research) with the need for open, collaborative workflows is challenging. 

4. Access Management Strain: Ensuring the right access for the right people at the right time is resource-intensive and operationally complex.

5. Fear of Overreach: Faculty and staff may resist zero-trust models, viewing them as a step toward “corporate control” of academic information. 

The 2025 EDUCAUSE Horizon Report highlights a growing tension between the traditional ethos of open access and the increasing demands for data security. Academic collaboration can feel restricted by a “verify first, access later” model. To ease this tension, the report suggests clearer communication about how systems work, moving beyond vague explanations like “IT said so,” and involving faculty and students in policy decisions to build trust and reduce resistance. 

Executive Buy-in 

Ultimately, automating identity and access management in higher education requires that IT leaders achieve buy-in from all decisions makers. While those in the trenches of the IT department may have a clear understanding of the benefits of automation, communicating with the C-suite can present its own challenges. 
 
While three-quarters of respondents identified executive buy-in as an automation hindrance, for schools struggling to convince decision makers of the value, it can be the sole roadblock to automation. As is the case with budget constraints, presenting the ROI of automation (time saved, decrease in human error, and as a result, reduced long-term costs) will be key in convincing leadership to commit to this essential evolution. 
 
All of these challenges certainly present stumbling blocks on the path to IAM automation for colleges and universities. Clear communication of the return on this investment will be critical as higher education IAM moves forward. See the full results of our survey and learn more about IAM automation challenges and benefits for higher education in our free resource: Higher Education IT Leaders Are Looking to Complement Access Governance With Automation.