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User-scoped execution
The agent acts as a specific user. Their identity, their permissions, their audit trail—just without them present. This is session inheritance extended to unattended execution. The agent can only do what the user could do—in browser applications and in remote MCP servers. Audit logs show the user as the actor. When to use it:- Tasks the user would do themselves, just automated
- Accessing resources the user already has permission for
- When accountability should trace back to a specific person
Agent identity
The agent has its own identity in your IDP—a service principal, workload identity, or machine account registered specifically for this agent. The agent authenticates as itself, not as a user. It has its own permissions for browser applications, its own role assignments for MCP servers, its own audit trail. When it acts, the logs show the agent as the actor. When to use it:- Agents that need permissions no single user should have
- Cross-functional workflows spanning multiple users’ domains
- When the agent’s decisions are its own, not a user’s automation
- Compliance scenarios requiring clear human/agent separation
Hybrid: Agent acting on behalf of user
There’s a middle ground. The agent has its own identity, but the token also preserves who authorized it. This uses theact (actor) claim pattern from RFC 8693 Token Exchange:
sub is the user—their permissions apply (for both browser apps and MCP servers). The act is the agent—visible in audit logs. This separates “whose authority is being used” from “who made the decision to use it.”
When to use it:
- When you need user-scoped permissions but agent-attributed actions
- Compliance scenarios that require distinguishing human actions from agent actions
- Multi-agent workflows where you need to track which agent did what
Choosing between them
| Consideration | User-scoped | Hybrid (OBO) | Agent identity |
|---|---|---|---|
| Permissions | User’s access | User’s access | Agent’s own roles |
| Audit trail | ”User did X" | "Agent did X (as user)" | "Agent did X” |
| Accountability | User | User authorized, agent acted | Agent (and sponsor) |
| IDP setup | Token exchange | Token exchange + agent registration | Agent registration |
| Best for | Simple automation | Attributed automation | Autonomous decisions |
Further reading
- Explaining OAuth Delegation, OBO, and Agent Identity — Christian Posta on how token exchange works for agents
- Agent Identity: Impersonation or Delegation? — The accountability tradeoffs
- What Kind of Identity Should Your AI Agent Have? — Aembit’s analysis of identity options
- Agent Identities in Microsoft Entra — Microsoft’s approach to agent identity
- Identity 101 for AI Agents — SecureAuth whitepaper on the fundamentals

