Identity and Access Management is important in today’s evolving world. It is the process of managing who has access to what information over time. Activity of IAM involves creation of identities for user and system. Secure user access plays a key role in the exchange of data and information. In addition, electronic data is becoming ever more valuable for most companies. Access protection must therefore meet increasingly strict requirements – an issue that is often solved by introducing strong authentication. Identity and the Access are two very important concept of the IAM which are needed to be managed by the company. Companies are now relying more on the automated tool which can manage all these things. But then it creates the risk. Because tools are not intelligent enough to take the decisions, so we can add the intelligence by using the various data mining algorithm. This can keep the data over time and then build the models. This paper covers all the challenges associated with the Identity and Access Management. The possible solution is given for these challenges.