In 2025, the landscape of customer authentication is characterized by a persistent struggle between outdated methods and emerging technologies. Organizations continue to rely heavily on traditional username/password systems despite widespread recognition of their inefficiencies and security vulnerabilities, while the introduction of multi-factor authentication (MFA) is inconsistent across applications, leaving gaps in security. The surge in AI-generated phishing attacks further complicates the situation, highlighting the urgent need for robust authentication solutions. Passkeys, a FIDO2-based passwordless authentication method, are gaining traction as a promising alternative, with increased consumer awareness and organizational adoption, signaling a shift towards a passwordless future. However, the rapid adoption of artificial intelligence (AI) without adequate preparation exacerbates existing identity management challenges. Companies are caught in a tension between security demands and user experience, often stretching developer expertise thin. Despite these challenges, there is optimism as organizations recognize the potential for authentication to enhance customer experience and begin to invest in more user-centric and secure solutions.