Microsoft Entra Agent ID: Blueprinting Identities for AI Agents in the Cloud

What Changed: Introducing Microsoft Entra Agent ID

Microsoft has introduced Entra Agent ID, a preview service designed to create and manage identities specifically for AI agents within organizations. This service introduces a new concept of "agent identity blueprints" that serve as templates for creating multiple agent identities with consistent configurations.

Agent identities represent AI Agents within a tenant and are typically provisioned when creating new AI Agents. This approach addresses a growing need as organizations deploy multiple instances of AI agents that pursue different goals and require different levels of access while sharing certain characteristics.

The service is currently in preview, meaning it's still evolving, but provides organizations with a structured approach to managing what could become a large number of AI agent identities as adoption increases.

Provider Comparison: Entra Agent ID in the Cloud Identity Landscape

In the broader cloud identity landscape, Microsoft's Entra Agent ID introduces a novel approach to identity management specifically for AI agents. While other cloud providers offer identity management services, Microsoft's focus on AI agent identities represents a targeted solution to a specific emerging use case.

Traditional identity management services like Azure AD, AWS IAM, and Google Cloud Identity are designed primarily for human users and applications. Entra Agent ID extends this model to specifically address the needs of AI agents, which have different characteristics:

1. Scale: Organizations may deploy many instances of the same AI agent with different purposes
2. Consistency: These instances need consistent configuration while having different access levels
3. Accountability: Each agent needs to be traceable back to a responsible human

Comparing with existing services:

• Azure AD: Traditional service for human and application identities, not specifically designed for AI agents
• AWS IAM: Focuses on permissions for AWS resources, not specifically for AI agent identities
• Google Cloud Identity: Similar to Azure AD, designed for human users and applications

Entra Agent ID fills a gap in the market by providing a purpose-built solution for managing AI agent identities with features like blueprints for consistency and built-in accountability models.

Implementation: Creating Agent Identity Blueprints with PowerShell

The article provides a detailed walkthrough of creating agent identity blueprints using Microsoft Graph PowerShell. This process involves several key steps:

Prerequisites and Setup

Before creating an agent identity blueprint, organizations need to ensure they have the appropriate roles in Microsoft Entra ID:

• Privileged Role Administrator to grant Microsoft Graph Application permissions
• Cloud Application Administrator or Application Administrator to grant Microsoft Graph delegated permissions
• Agent ID Developer or Agent ID Administrator roles to create agent identity blueprints

The PowerShell implementation requires version 7 and the beta version of Microsoft Graph modules. The sample code demonstrates connecting to Microsoft Graph with all necessary scopes in a single connection to minimize authentication prompts during deployment.

Creating the Blueprint

The blueprint creation process involves:

1. Resolving the current user to serve as sponsor and owner
2. Building and sending a request to create the blueprint application object
3. Configuring the identifier URI and OAuth2 scope
4. Creating the agent blueprint principal

Each step includes specific considerations, such as using OData type casting to distinguish agent identity blueprints from regular application registrations and using reference binding for establishing relationships between entities.

Configuration Details

The blueprint requires specific configurations:

• An identifier URI following the api://{appId} convention
• OAuth2 permission scopes for clients to request access
• Proper assignment of sponsors and owners for accountability

The article explains how these configurations work together to create a functional agent identity blueprint that can be used to create multiple agent identities.

Implementation: Creating Identities with .NET and Azure Container Apps

Once the blueprint is established, the article demonstrates how to create actual agent identities using an ASP.NET Web API deployed to Azure Container Apps. This implementation uses Microsoft.Identity.Web to handle authentication and token acquisition.

Authentication Configuration

The .NET implementation uses a managed identity approach rather than client secrets for enhanced security. The configuration in appsettings.json specifies:

• Azure AD settings for authenticating incoming requests
• Downstream API configuration for making calls to Microsoft Graph
• Use of managed identity for acquiring app-only tokens

Creating Agent Identities

The API endpoint for creating agent identities:

• Extracts the sponsor from the caller's token
• Allows for display name configuration with fallback options
• Uses the blueprint ID from configuration rather than hard-coding
• Follows REST conventions with a POST endpoint

The article explains how the AgentIdentity model serializes to the JSON expected by Microsoft Graph, including the OData discriminator that identifies it as an agent identity.

Cleanup and Management

The implementation also includes a DELETE endpoint for removing agent identities when they're no longer needed. This is important for security, as orphaned agent identities could retain credentials and permissions even when not in use.

Business Impact: Strategic Considerations for Organizations

The introduction of Entra Agent ID has several business implications for organizations adopting AI:

Governance and Compliance

Entra Agent ID provides a structured approach to managing AI agent identities, which is crucial for governance and compliance. By establishing clear relationships between agents and their human sponsors, organizations can maintain accountability for AI actions.

Scalability

The blueprint approach allows organizations to scale their AI agent deployments efficiently. Rather than configuring each agent identity individually, blueprints provide a template for consistent configuration across multiple instances.

Security

The service enhances security by:

• Using managed identities instead of storing secrets
• Implementing proper cleanup of orphaned identities
• Establishing clear access controls through scopes and permissions

Integration with Existing Infrastructure

Entra Agent ID integrates with Microsoft's existing identity ecosystem, making it easier for organizations already using Azure AD to adopt. The service also works with Azure Container Apps, providing a complete solution for hosting AI agents.

Migration Considerations

For organizations considering adopting Entra Agent ID, several factors should be considered:

Current Identity Management Strategy

Organizations should evaluate their current identity management approach and determine how Entra Agent ID fits into their overall strategy. The service is specifically designed for AI agents, so it complements rather than replaces existing identity management solutions.

Development and Operations Teams

Implementing Entra Agent ID requires coordination between development and operations teams. The PowerShell automation for setup and the .NET implementation for runtime management need to be properly integrated into existing DevOps processes.

Security Review

Before widespread adoption, organizations should conduct a thorough security review of the implementation, particularly around:

• Permission assignments
• Token management
• Cleanup processes for orphaned identities

Conclusion

Microsoft Entra Agent ID represents a strategic addition to the cloud identity landscape, specifically addressing the unique needs of AI agent management. By providing a structured approach to creating and managing agent identities through blueprints, the service helps organizations scale their AI deployments while maintaining governance and security.

The implementation details in the article demonstrate that while the service is still in preview, it offers a practical solution for organizations looking to adopt AI agents in a secure and manageable way. As the service matures, it may become an essential component of AI infrastructure in Microsoft-centric environments.

For organizations already using Azure AD and Azure services, Entra Agent ID provides a natural extension of their existing identity management capabilities, making it easier to adopt AI technologies while maintaining the security and governance they expect from Microsoft's cloud platform.

This article has provided an overview of what Entra Agent ID is, how it compares to other identity management services, and how organizations can implement it using PowerShell and .NET. As AI continues to evolve, services like Entra Agent ID will play an increasingly important role in managing the identities of these non-human actors in our digital ecosystems.