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Microsoft Explains How Identity and Access Management is Scaling for AI Adoption in Entra

Microsoft Explains How Identity and Access Management is Scaling for AI Adoption in Entra

Written By Anoop C Nair
Last Updated April 28, 2026
Posted In Entra
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Key Takeaways

  • AI agents are changing how identity systems work
  • Existing standards are being improved, not replaced
  • Trust, delegation, and security are key focus areas
  • Automation is becoming important for managing identities

In this post, we are discussing Microsoft Explains How Identity and Access Management is Scaling for AI Adoption in Entra. Microsoft recently shared its perspective on how identity and access management (IAM) is improved as AI agents become more common in organizations. In the new update, it explained the need for better ways to manage how these intelligent systems access data and services.

Table of Contents

Microsoft Explains How Identity and Access Management is Scaling for AI Adoption in Entra

Earlier, identity systems were mainly built for people and simple apps. But now, AI agents can do tasks on their own, so they also need secure access. This makes identity management a bit more complex than before.

Even with these changes, Microsoft believes current standards are still useful. Instead of replacing them, the industry is updating them to support AI agents. For example, OAuth is now being used in new ways to allow secure communication between systems and agents.

Microsoft Explains How Identity and Access Management is Scaling for AI Adoption in Entra -Fig.1
Microsoft Explains How Identity and Access Management is Scaling for AI Adoption in Entra -Fig.1

Trust for Digital Agents

One important area is how systems trust each other. Earlier, this setup was done manually by IT teams. Now, with many agents working together, this process is becoming automated. New methods help systems identify and trust each other without human effort, saving time and reducing errors.

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  • Identity standards for agentic systems are evolving around three main themes such as bootstrapping trust, delegation, and eliminating shared secrets.
3 Main ThemeFocus
Bootstrapping TrustNon-human entities (OAuth servers, workloads, AI agents) can announce themselves and request access without manual metadata uploads.
DelegationMoving beyond human-only delegation to agent-to-agent scenarios, with debates around token exchange, identity chaining, and on behalf of models.
Eliminating Shared SecretsRemoving reliance on API keys and bearer tokens, which are increasingly vulnerable to misuse in agent contexts.
Microsoft Explains How Identity and Access Management is Scaling for AI Adoption in Entra -Table.1

Microsoft’s Approach to Agentic Identity

Microsoft is investing strongly in identity for AI systems, but much of this work happens through collaboration with global standards communities. The company is building its identity solutions using open standards so that AI systems can be secure, scalable, and work across different industries.

  • Microsoft is actively working with groups like IETF, FIDO Alliance, and OpenID Foundation to improve how identity works for AI agents.
  • These collaborations help ensure that identity systems continue to evolve in a reliable and consistent way.
  • This screenshot from the Microsoft Entra Admin Center shows a list of all connected applications in one place. It helps us understand how different apps are securely connected and managed.
  • This is important for AI and other systems, as it shows how they can safely access and work with different services using a common identity.
Microsoft Explains How Identity and Access Management is Scaling for AI Adoption in Entra -Fig.2
Microsoft Explains How Identity and Access Management is Scaling for AI Adoption in Entra -Fig.2

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Author

Anoop C Nair is a Workplace Technology solution architect with 25+ years of experience. Microsoft Certified Trainer. Microsoft MVP from 2015 onwards for consecutive 11+ years! He is a blogger, Speaker, and Founder of HTMD Community and HTMD Conference. His main focus is on Device Management technologies like Intune, Windows, and Cloud PC. He writes about technologies like Intune, SCCM, Windows, Cloud PC, Entra, and Microsoft Security.

Written by

Anoop C Nair is Workplace Technology solution architect with 25+ years of experience in global enterprise organizations such as JP Morgan, Capgemini, etc. Microsoft Certified Trainer. Microsoft MVP from 2015 onwards for consecutive 11+ years! He also conducts Intune and modern workplace tech training for enterprise organizations. He is Blogger, Speaker, and Founder of HTMD Community and HTMD Conference. His main focus is on Device Management technologies like Intune, Windows, Cloud PC. He writes about technologies like Intune, SCCM, Windows, Cloud PC, Windows, Entra, Microsoft Security.

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