Microsoft Replaces SMS MFA with Passkeys: Are Enterprises Ready for the AI Security Arms Race?

The most valuable insight from this article is: Microsoft's mandate for Entra users to switch to passkeys in 2027 essentially admits that traditional SMS/voice MFA has failed against AI-driven automated attacks. Underlying this is a paradigm shift in identity authentication from "verifying knowledge" to "verifying identity." For enterprise architects, this isn't just a security upgrade; it's a recalculation of cost structures.