Do not give an AI agent your reusable password. If it needs to work with an account or service, authenticate it through a delegated authorization flow when it is acting for you, or give it a separate, narrowly permissioned workload identity when it runs independently. Where the platform supports it, managed identity or workload identity federation can replace credentials stored in code or configuration with short-lived tokens.
Choose access based on who the agent is acting for
The key decision is whether the agent is carrying out a request for a signed-in person or running an independent task. Those cases need different identities and permissions.
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| Situation | Access pattern | Who the service should treat as the principal |
|---|---|---|
| A signed-in user asks the agent to work with data that user can access | Delegated OAuth access; Microsoft APIs may use an on-behalf-of flow when authority passes between APIs | The user, with the agent acting within the user’s permissions |
| A scheduled or background agent runs without a live user | App-only access through an application or workload identity | The application or workload itself |
| A workload runs on supported Azure compute and accesses a supported Azure resource | Managed identity | The workload’s managed identity |
| A workload runs across supported cloud, CI/CD, or Kubernetes environments | Workload identity federation | The workload identity trusted by the target provider |
| An autonomous agent must access a resource designed around a user-shaped identity | A purpose-built agent user account, where the identity platform offers one | The agent identity authorized to act through that account |
When the agent is acting for a person
Use delegated access so the downstream service can enforce the signed-in user’s resource permissions. A Microsoft on-behalf-of flow can carry delegated user authority across APIs; it is not a reason to substitute a powerful backend identity that bypasses the user’s rights. The action should remain attributable both to the initiating user and to the agent involved.
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When the agent runs on its own
Give it an application or workload identity and only the permissions its task requires. An administrator should approve the necessary application permissions or roles rather than granting broad access by default. This identity lets the organization authorize, manage, and audit the workload; it does not automatically confer a human user’s authority.
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Replace stored secrets where the platform supports it
A workload identity is not the same as a password embedded in a prompt, script, environment file, or agent configuration. Managed identity and federation let a workload prove its identity through a trusted platform and obtain a token for a target service without keeping a long-lived credential in the workload.
Managed identity
For supported Azure hosting and target services, a managed identity lets the workload obtain Microsoft Entra tokens without developers managing its credentials. Check support on both sides: the compute environment must provide the identity, and the resource being called must accept it. Microsoft documents managed identity federation as a production option for autonomous agent identity blueprints.
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Workload identity federation
With federation, a workload presents a signed identity token from an issuer such as a supported cloud, Kubernetes environment, or CI/CD platform. The target provider checks configured trust conditions and exchanges that token for a short-lived access token. This avoids storing a static API key in the workload, but the exact issuers, setup, and supported services differ by provider.
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Set up the identity and access in a controlled sequence
- Define the task and principal. Decide whether a live user is requesting the work or whether the agent must run independently. List the data and operations it actually needs.
- Select the matching flow. Use delegated OAuth for user-directed work. For autonomous background work, use app-only access with an application or workload identity.
- Choose how the identity obtains tokens. Prefer managed identity or federation when the workload and target service support them. If a provider requires another credential, follow its production guidance and protect, rotate, and revoke that credential through the identity platform rather than exposing a human password.
- Limit and approve permissions. Request only the required delegated scopes or application roles. Obtain administrator consent where required, and keep the granted authority aligned with the agent’s defined task.
- Configure trust narrowly. For federation, restrict which issuer, workload, and other supported identity claims can obtain tokens. A valid token from an overly trusted issuer can still give an attacker a route to the service.
- Plan audit and revocation. Record the agent or workload principal, the linked user when delegated access is used, the permissions granted, and the actions taken. Ensure administrators can withdraw consent, disable the identity, or remove federation trust when access is no longer needed.
Protect the identity provider and check each action
A token is still a credential, even when it is short-lived. Anthropic’s federation guidance warns that federated authentication is only as strong as the upstream identity provider that signs the JWT. Protect that provider and its signing process, restrict who can alter trust settings, and treat leaked tokens as credentials that require response.
Authentication establishes which principal presented valid proof of identity; it does not establish that every requested operation is appropriate or authorized. The downstream service must enforce the principal’s specific permissions, and sensitive actions may need a separate approval or policy check.
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Sharing a human password with an agent weakens this boundary: the agent may be able to impersonate the person, and logs may not make clear whether an action came from the person or automation. NIST’s August 27, 2026 article, “Back to the Future: Why Agentic AI Needs a Strong Identity Foundation,” notes that shared credentials can blur the distinction between human and agent identity and points to existing delegation patterns for many use cases.
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What provider examples do—and do not—establish
Microsoft Entra
Microsoft distinguishes delegated access, app-only access, managed identity, service principals, and agent identities. Its documentation for autonomous agent identity blueprints recommends managed identity federation or client certificates for production and says not to use client secrets as production credentials. Microsoft also documents agent user accounts for resources such as mailboxes and Teams channels; these accounts have no credentials of their own, and the associated agent identity must be authorized for delegated access. These are Entra-specific features and guidance.
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OpenAI and Anthropic
OpenAI’s workload identity federation applies to authentication to OpenAI services. Anthropic documents API keys, workload identity federation, and App Attest as authentication options for its Claude platform. Availability and configuration depend on each provider’s service and supported workload environment; neither example means the same flow is supported by every API.
Emerging agent identity work
NIST NCCoE’s February 2026 concept paper, “Accelerating the Adoption of Software and AI Agent Identity and Authorization,” identifies agent identification, delegation, authorization, logging, transparency, and data-flow provenance as areas for exploration. It discusses OAuth/OIDC and MCP among relevant standards and protocols. A concept paper is not a claim that a single agent-authentication standard or all proposed capabilities are final or universally deployed.
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