Generative AI is significantly reshaping Identity and Access Management (IAM) by introducing complex challenges that traditional methods cannot sufficiently address, particularly with the emergence of AI identities that blur the lines between human and machine users. This transformation necessitates a comprehensive, proactive IAM framework that rethinks identity management through key questions: "Who," "What," "Where," and "When." Understanding AI identity requires combining authentication and authorization into a unified system that ranks users and tracks their actions, while proactive authorization involves managing both ingress and egress traffic dynamically. Managing AI permissions involves moving beyond static access control models to dynamic, contextual permissions using tools like Retrieval-Augmented Generation and dynamic authorization services. Additionally, dynamic access control must shift from static, time-bound concepts to event-driven timelines that incorporate real-time data for adaptive decision-making. By embracing integration, dynamic monitoring, and proactive adaptation, organizations can turn the challenges of generative AI into opportunities for developing smarter, more secure applications.