Authorization Propagation in Multi-Agent AI Systems: Identity Governance as Infrastructure

As AI systems evolve from passive models into autonomous active agents capable of initiating actions, collaborating, and delegating tasks, the traditional boundaries of software systems blur. Traditional authorization and delegation frameworks, built around fixed principals, explicit requests, and static scopes, are insufficient to govern agentic systems. Agentic AI demands richer authorization semantics: agents must inherit and delegate permissions, act under time-limited authority, and coordinate through shared protocols. Existing Identity and Access Management (IAM) systems fail to fully capture this notion of agency, lacking mechanisms for recursive delegation, contextual boundaries, and dynamic scoping as executable governance primitives. Unlike access delegation standards such as OAuth 2.0, we treat delegation as a contractual term rather than merely a static token-based consent credential. This paper proposes a compositional governance framework that introduces primitives indispensable for agentic AI. We define types of delegation and their permissions and accountability implications, and we introduce a notion of resource scope attenuation to bound agentic access envelopes. These concepts are expressed as general relational definitions that can be composed into existing authorization domains (e.g., financial systems). To operationalize this composition, we define a compositional operator that overlays new agentic semantics, such as recursive delegation chains, onto existing relational policies without rewriting them. We substantiate this framework through formal proofs and empirical evaluation, showing that it provides a formal yet practical foundation for accountable authorization in agentic AI systems.

Enterprise AI is shifting from copilots to autonomous agents capable of executing workflows, negotiating outcomes, and making decisions with limited human oversight. As these systems extend across organizational boundaries, identity alone is insufficient: an agent's authority must also be explicit, constrained, auditable, revocable, and consistently interpretable by independent receivers. This paper analyzes representative enterprise use cases in insurance claims processing and supply chain integrity to surface structural gaps in existing identity and access models. It proposes a portable authorization model for autonomous agents based on issuer-authored authorization payloads, typed constraint algebra, decision-consistent evaluation semantics, delegation attenuation, governed semantic resolution, fail-closed processing, and pre-flight discovery. The model separates credential containers, authorization payload semantics, and enforcement engines, allowing profiles such as JWT/JWS, Verifiable Credentials, OAuth Rich Authorization Requests, or policy-engine bindings to preserve a common authorization meaning across trust boundaries.

AI agents issue tool calls on the basis of text they cannot verify, so any party who controls part of the context can forge the appearance of authority. I evaluate 15 contemporary language models against eight attack scenarios derived from a published corpus of real agent incidents and find that refusal varies from 100% down to 38% across fully evaluated models; the most expensive model refused only half of the attacks despite a twentyfold price spread. I present aiAuthZ, an authorization gateway that moves the safety decision off the agent's host. Before a tool call executes, the gateway verifies caller identity with a per-message HMAC-SHA256 signature bound to a single-use nonce and a timestamp window, and it evaluates a role-based and argument-level policy that the agent can neither read nor modify. Every decision joins a SHA-256 hash-chained audit log, and each accepted message yields an HMAC-authenticated QR receipt that achieves 94% mean verification across eight transmission channels, with zero forgeries accepted in 25 wrong-key trials. With the gateway in place, residual attack success falls to 0% for all 15 models at no more than 0.03 ms of added decision latency. On the AgentDojo banking suite, aiAuthZ blocks all seven attacker-directed tool calls the evaluated agents emit, at the cost of one legitimate first-time payment, while a spotlighting baseline allows two injections to succeed. Across nine in-scope case studies from the same incident corpus, aiAuthZ blocks nine of nine, against four of nine for a policy baseline without identity binding. The gateway does not prevent a model from being deceived; it prevents a deceived model from acting beyond the verified user's authority on every call routed through it. The implementation and all experiments are released at https://github.com/Sports-Vision-Inc/aiAuthZ.