Generative AI has presented new challenges for managing AI permissions, as traditional methods like whitelists and blacklists are becoming obsolete due to the dynamic nature of AI identities. This article, part of a series on generative AI in Identity and Access Management (IAM), explores modern approaches such as Retrieval-Augmented Generation (RAG) and dynamic authorization services to securely manage AI permissions. RAG enhances AI outputs by retrieving authorized information from a knowledge base to improve context, while dynamic authorization services use relationship-based access control to ensure AI systems access only permitted data. These methods prevent unauthorized data exposure and mitigate risks associated with AI systems inadvertently bypassing traditional access controls. The importance of educating teams on AI access control and understanding AI operations is emphasized to maintain compliance with security and privacy policies. The article suggests integrating these security measures with tools like Permit.io to dynamically manage AI permissions as data scales and relationships grow more complex, ensuring that AI systems remain secure and adaptable.