Workday has signed a definitive agreement to acquire C1.ai, an agentic identity platform that manages access to enterprise applications and systems for employees and AI agents.
The acquisition will expand Workday’s capabilities beyond managing workforce and agent records by adding identity-governance controls that determine what people and autonomous AI systems can access, when they receive access, and when permissions should be removed.
C1.ai connects with enterprise systems ranging from email and customer relationship management platforms to code repositories, financial applications, and cloud infrastructure. Its platform provisions scoped access, enforces organizational policies, incorporates human approvals, and maintains records of actions taken by people and agents.
Workday sees identity governance becoming increasingly important as businesses deploy more autonomous AI agents. The company cited C1.ai research indicating that 95% of large U.S. companies already use autonomous agents, while Deloitte research found that only 21% of organizations report having mature governance capabilities for those systems.
Workday plans to integrate C1.ai with its existing Agent System of Record. The combination would allow companies to move beyond simply registering and tracking AI agents by governing what those agents can access across Workday and other enterprise applications.
The technology could also automate access management throughout an employee’s lifecycle. When a new hire joins, they could receive permissions to applications such as Slack, Jira, and finance systems, while changes in job responsibilities could automatically trigger corresponding access updates. Permissions could then be removed when an employee leaves.
Similar controls would apply to AI agents. Agents acting on behalf of employees could receive more limited permissions than the person they support, while independently operating agents could be assigned broader but closely monitored access. Retired agents could have permissions revoked immediately rather than retaining access after their work ends.
Workday said the acquisition supports its broader strategy of becoming the identity governance layer for the combined human and AI workforce. The company currently serves more than 11,500 organizations worldwide, including more than 65% of the Fortune 500.
The transaction is expected to close in Workday’s fiscal fourth quarter of 2027, which ends January 31, 2027, subject to customary closing conditions.
Support: BofA Securities is serving as financial advisor to Workday, while Orrick is its legal advisor. Qatalyst is serving as financial advisor to C1.ai, and Ashurst Perkins Coie is serving as legal advisor.
KEY QUOTES:
“Today’s companies run on a combined workforce of people and AI agents. With C1.ai, we’ll help secure that workforce by managing and enforcing exactly who – and what – has access to connected apps and systems, giving each person and agent the right access at the right moment to make work easier, safer, and more compliant.”
Gerrit Kazmaier, President, Product And Technology Of Workday
“Enterprises can’t secure the AI era using yesterday’s IT tickets. Workday is the operational heart of the enterprise, and by bringing C1.ai’s identity governance directly into that core, we’ll be able to manage access for every human and agent in real time – making work faster without making it less secure.”
Alex Bovee, CEO And Co-Founder Of C1.ai
