Give every AI agent its own managed identity, then grant only the smallest read or write scope needed for one named task. Remove broad OAuth grants and unused connectors, restrict the agent to specific mailboxes, folders, sites, records or API resources, and require a person to approve payments, deletions, external messages, account changes and other irreversible actions. Log every consent, permission change and tool call; review access on a schedule; use time limits where available; and revoke the grant when the business purpose ends.
Start with an agent identity, not a shared account
An AI agent should be an auditable identity in your identity-and-access system, separate from employees and from other agents. Create one managed identity or service principal per agent and name it for its single business purpose, such as invoice-intake-agent or support-draft-agent. Do not let unrelated agents share one identity: shared credentials make it impossible to tell which automation read a file, changed a record or sent a message, and revoking one workflow can break all the others.
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Keep a short owner record for each identity: the business owner, technical owner, task description, data resources, approved tools, expiry or review date, and emergency revocation method. This turns an agent from an opaque integration into something you can audit like a staff account.
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Microsoft’s Agent ID guidance says agent identities cannot receive several high-risk tenant-wide roles and permissions, including Application.ReadWrite.All, RoleManagement.ReadWrite.All, User.ReadWrite.All and Directory.AccessAsUser.All. Treat those as a hard stop for a small-business agent. If a vendor or internal developer requests one, ask for a narrower resource-specific permission or redesign the workflow so a human performs the privileged step.
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Choose the narrowest OAuth or API scope
Broad consent is usually the first setting to change. An agent that only classifies incoming support mail does not need to read every mailbox, create messages, access contacts or modify account settings. Start with read-only, delegated access and expand only when a documented task cannot work without more authority.
Delegated versus app-only access
Delegated permissions act within a signed-in user’s existing authority. A user’s Mail.Read or Files.Read can be appropriate when the agent is working on that user’s mailbox or files and the platform preserves the user’s normal access boundaries. App-only permissions run as the application itself and can reach resources without a user present; they are sometimes necessary for a scheduled back-office job, but they carry a much larger blast radius.
Use app-only or tenant-wide access only when you can document why delegated access cannot perform the task, identify every resource the app can reach, and add compensating controls such as a separate identity, data filters, approval gates and intensive logging. A request for “read all mail” or “full files access” should be treated as a design exception, not a default.
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Create distinct credentials or tool policies for reading, drafting and committing changes. For example, a triage agent can read a queue and write a proposed category, while a second, approval-gated action posts a customer reply. Avoid a single token that combines read, create, update and delete rights when the workflow can be split.
Restrict connectors, tools and the audience
Every connector is an additional path to data or action. Disable unused mail, storage, CRM, finance, code, calendar and browser connectors instead of leaving them available “just in case.” Review the tools an agent can call as carefully as the data it can read: a read-only database connector can still expose sensitive records, while a messaging connector can create an external incident.
Do not publish a personal connection
Workspace-agent guidance warns that an agent published with its builder’s personal connection may let every permitted user act with the creator’s access. Replace personal connections with a dedicated managed identity whose scopes match the agent’s task. If the platform cannot separate the builder’s connection from the published agent, do not publish that workflow to a broad audience.
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Limit who can run or publish the agent
Set the smallest audience that can accomplish the job. A payroll-review agent may be limited to payroll staff; a document-classification agent may be limited to a controlled operations group. Restrict publishing and configuration rights to a few administrators, require a second review for scope changes, and remove users who change roles. An agent that is safe for ten trained operators can become unsafe when exposed to the entire tenant.
Draw a hard data boundary
Specify the exact sites, folders, records, mailboxes or API resources the agent needs. “All company files” is not a boundary. Use folder-level, site-level, record-level or API-resource filters where the platform supports them, and test the negative case: confirm that the agent cannot retrieve a neighboring folder, another department’s mailbox or a record outside its assignment.
Keep public-facing agents away from internal data
A public website or customer-facing agent should not have a path to internal business data. Put it in a separate environment or tenant, expose only an allow-listed API, and return the minimum fields needed for the conversation. Do not solve a public knowledge task by granting the agent broad access to internal drives or CRM tables. Microsoft guidance recommends official APIs and connectors that preserve the user’s underlying permissions where possible; use that model instead of screen scraping or shared credentials.
Classify data before connecting it
Mark the resources the agent may handle: public, internal, confidential, regulated or restricted. For confidential or regulated data, require an owner’s approval, redact fields that are not needed, and define retention and deletion behavior for prompts, outputs and tool logs. If the platform cannot explain where data is stored, who can retrieve it, and how it is deleted, do not connect that resource until those answers are documented.
Put humans in front of high-impact actions
An agent may recommend an action automatically, but a person should confirm any operation that sends information outside the business, moves money, deletes data, changes a business record or changes an account. Australian Cyber Security Centre guidance specifically cautions against allowing an agent to approve transactions, send communications or modify business data without oversight.
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Use a two-stage pattern
- Prepare: The agent reads the permitted inputs and produces a draft, proposed transaction or change set.
- Show: Present the exact recipients, amounts, fields, attachments, permissions and resulting side effects to an authorized reviewer.
- Confirm: Require an explicit approval that is bound to that specific action, not a blanket “approve all future requests.”
- Commit: A narrowly scoped tool performs the approved operation and returns an outcome identifier.
- Record: Store the request, reviewer, timestamp, scope used, tool response and any rollback reference.
For irreversible operations, add a cooling-off period or a second approver. For reversible updates, provide a rollback command or version restore path before enabling automation.
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Design policies for agents that cannot complete interactive MFA
Agents cannot complete an interactive, human-style multifactor authentication challenge. Do not assume that requiring a pop-up MFA prompt will protect an unattended workflow. Instead, create agent-specific policies that evaluate the managed identity, risk signals, network or named location, device and requested resource. Deny requests from unexpected locations, require a stronger control for sensitive resources, and separate unattended service identities from ordinary employee sign-ins.
Document which controls replace an interactive MFA step: certificate or workload identity authentication, network restrictions, conditional access, short-lived tokens, approval gates and anomaly alerts. Test both normal operation and a failed-risk condition so the agent stops rather than falling back to a weaker credential.
Log what the agent did and make revocation fast
Logging must cover more than sign-ins. Capture consent grants, scope changes, connector additions, prompts or requests that trigger tools, tool arguments, returned records or status codes, human approvals, policy denials and the final business outcome. Send logs to a location the agent cannot alter, and retain enough context to reconstruct an incident without storing unnecessary sensitive content.
Schedule recurring access reviews
Set a review interval based on risk: high-impact or broad-access agents deserve a frequent review, while a narrow read-only classifier can be reviewed less often. At each review, compare actual tool calls with the stated task, remove unused scopes, confirm the owner and audience, and check whether the underlying data location has changed. Microsoft guidance calls for validating logging, revocation and downstream enforcement rather than assuming a permission change took effect everywhere.
Use time-bound access
Prefer just-in-time or expiring access packages when your identity platform supports them. A temporary grant for a migration or quarter-end close should expire automatically instead of becoming a permanent entitlement. Record the start time, expiry, approver and exact resources covered. If a platform cannot issue time limits, create a calendar-controlled expiry process and an alert for overdue removal.
Revoke in the right order
- Disable the agent or block new runs.
- Revoke OAuth refresh tokens, API keys and service-principal credentials.
- Remove connector assignments and resource ACLs.
- Disable webhooks, scheduled jobs and queues that could restart it.
- Search logs for recent tool calls and rotate any secrets the agent could have exposed.
- Confirm downstream systems no longer accept the identity, then record the closure.
Practice this sequence before an emergency. A permission removed in one console may remain effective through a cached token, a second connector or a downstream system that has not rechecked authorization.
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A practical rollout sequence for a small business
- Write the task statement. Name the trigger, inputs, allowed outputs, data owner and prohibited actions in one paragraph.
- Inventory current access. Export the agent’s identities, OAuth scopes, connectors, audiences, scheduled jobs and stored credentials.
- Remove excess. Delete unused connectors, convert write scopes to read-only where possible, and replace tenant-wide grants with resource-specific ones.
- Create the dedicated identity. Give the agent a managed identity or service principal, owner and expiry or review date.
- Build the data boundary. Allow-list exact mailboxes, folders, sites, records or API resources; test that neighboring resources are denied.
- Separate preparation from commitment. Route messages, payments, deletions, account changes and record updates through an explicit human approval step.
- Configure agent-specific policy. Use identity filters, risk signals and named locations instead of relying on interactive MFA.
- Turn on audit logs and alerts. Alert on scope expansion, new connectors, unusual locations, denied requests and high-impact tool calls.
- Run a controlled pilot. Start with synthetic or low-risk data, then compare the agent’s calls with the task statement before widening the audience.
- Review and rehearse revocation. Set the next access review, test token and connector removal, and document who can shut the agent down.
How to compare an agent design or platform
When choosing between implementations, score each one on the controls below rather than on the model’s conversational quality alone.
| Control area | Questions to ask | Safer evidence |
|---|---|---|
| Identity separation | Can every agent have its own managed identity or service principal? | Per-agent ownership, credentials and audit trail |
| Scope granularity | Can permissions be delegated, read-only and limited to named resources? | Folder-, site-, record- or API-resource scopes |
| Connector and data controls | Can administrators disable tools and enforce allow-lists? | Explicit connector inventory and denied-by-default configuration |
| Approval and rollback | Can high-impact calls pause for a specific human approval and be reversed? | Action-level approval records and rollback identifiers |
| Audit and revocation | Are consent, tool calls, outcomes and permission changes logged, and can access be removed quickly? | Immutable logs, token revocation and downstream enforcement checks |
| Time limits and policy | Can access expire and can policies use identity, risk and location signals? | Just-in-time grants and agent-aware conditional policies |
Common failure modes and fixes
The agent asks for “full access”
Stop the approval and map each requested operation to a task requirement. Grant the smallest delegated or resource-specific scope, split read and write functions, and document any unavoidable exception with an owner and expiry.
A builder’s connection is still attached
Unpublish the agent, replace the personal connection with a dedicated identity, retest every connector and limit the audience before republishing. Review logs for actions performed under the builder’s authority.
A public agent can retrieve internal records
Remove the internal connector, isolate the public runtime and expose only an allow-listed API response. Test prompts that request confidential data and verify that the denial is logged.
A token was revoked but the agent still works
Block new runs, revoke refresh tokens and keys, remove resource ACLs, disable schedules and webhooks, and check the downstream service’s own session or token cache. Do not close the incident until a fresh authorization attempt fails.
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Questions to ask before approval
- What single business task does this agent perform?
- Which exact resources must it read, and which must it write?
- Can a delegated, read-only scope replace app-only or tenant-wide access?
- Which connectors are enabled, and who can run or publish the agent?
- What action requires a person’s approval, and how is that approval recorded?
- How are public users prevented from reaching internal data?
- Where are consent, tool calls, outcomes and revocations logged?
- When does access expire, who reviews it, and how is emergency shutdown tested?
Frequently Asked Questions
What permissions should an AI agent receive first?
Start with a dedicated managed identity and the smallest delegated, read-only scopes that complete one named task. Add write or app-only access only after documenting the need and controls.
Should an agent be allowed to send email or approve payments?
It may prepare a draft or proposed transaction, but require explicit human confirmation before sending external messages, approving transactions, deleting data, changing records or changing accounts.
How can I stop an agent seeing all company files?
Remove broad file OAuth grants, disable unused storage connectors and allow-list the exact sites, folders or API resources required. Test that adjacent locations are denied.
How do I revoke an agent’s access?
Disable new runs, revoke refresh tokens and keys, remove connector assignments and resource permissions, disable schedules and webhooks, then verify that downstream systems reject the identity.
Can an unattended agent use normal MFA?
Agents cannot complete interactive MFA controls. Use agent-specific policies based on identity, risk signals and named locations, with short-lived credentials and approval gates for sensitive actions.
How often should permissions be reviewed?
Set a recurring review based on risk, with more frequent checks for broad or high-impact agents. At each review, compare actual tool calls with the task, remove unused scopes and confirm ownership and expiry.
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