Digital Identity for Agentic Systems: Toward a Portable Authorization Standard for Autonomous Agents

The security discussion around agentic AI focuses heavily on prompt injection. This paper argues that multi-agent systems also create a distinct authorization problem: maintaining authorization invariants as non-human principals retrieve data, delegate tasks, and synthesize results across changing boundaries. We call this problem authorization propagation. It is not reducible to prompt injection and is not fully addressed by classical access-control models such as RBAC, ABAC, or ReBAC. The paper formalizes authorization propagation as a workflow-level property, identifies three sub-problems (transitive delegation, aggregation inference, and temporal validity), and derives seven structural requirements for authorization architectures in multi-agent AI systems. Recent work on invocation-bound capability tokens, task-scoped authorization envelopes, dependency-graph policy enforcement, and execution-count revocation demonstrates that the field is converging on the problem, but not yet on a complete architecture. The central claim is that identity governance must be treated as infrastructure: evaluated continuously, enforced at every interaction boundary, and designed into the system before orchestration logic is allowed to scale. Preliminary implementation evidence from a production enterprise AI platform shows that ordinary system behavior, not only adversarial action, already produces the failures this model predicts.

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.

AI agents are now running real transactions, workflows, and sub-agent chains across organizational boundaries without continuous human supervision. This creates a problem no current infrastructure is equipped to solve: how do you identify, verify, and hold accountable an entity with no body, no persistent memory, and no legal standing? We define AI Identity as the continuous relationship between what an AI agent is declared to be and what it is observed to do, bounded by the confidence that those two things correspond at any given moment. Through a structured survey of industry trends, emerging standards, and technical literature, we conduct a gap analysis across the full agent identity lifecycle and make three contributions: (1) a structural comparison of human and AI identity across four dimensions (substrate, persistence, verifiability, and legal standing) showing that the asymmetry is fundamental and that extending human frameworks to agents without structural modification produces systematic failures; (2) an evaluation of current technical and regulatory documents against the identity requirements of autonomous agents, finding that none adequately address the challenge of governing nondeterministic, boundary-crossing entities; and (3) identification of five critical gaps (semantic intent verification, recursive delegation accountability, agent identity integrity, governance opacity and enforcement, and operational sustainability) that no current technology or regulatory instrument resolves. These gaps are structural; more engineering effort alone will not close them. Foundational research on AI identity is the central conclusion of this report.