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Microsoft Just Built a Control Plane for AI Agents. Here Is What It Cannot Do.

Microsoft just announced Agent 365 — a unified control plane for managing AI agents across the enterprise, generally available May 1, 2026. It includes an Agent Registry, behavioral observability, risk signals across Defender/Entra/Purview, and security policy templates.

Meanwhile, Strata published their "8 strategies for AI agent security" calling for treating agents as first-class identities with just-in-time provisioning, and Token Security is at RSAC 2026 pitching "machine-first identity."

The message from the industry is unanimous: agents need identity. The disagreement is about who controls it.

The Centralized Model

Microsoft's approach is elegant for enterprises: one control plane, one registry, one set of policies. Your agents are managed like employees in Entra — provisioned, monitored, governed.

But it assumes something that's increasingly false: that all agents live in your tenant.

The moment your agent needs to call an external agent — one built by a vendor, a partner, or an open-source project — Agent 365 can't help. Your registry doesn't know their agents. Their registry doesn't know yours. You're back to API keys and trust-on-first-use.

Strata's "Identity Orchestration" has the same blind spot. It orchestrates identities you already manage. It doesn't create a way for unknown agents to prove who they are.

The Missing Primitive

What's missing is portable, cryptographic identity — identity that agents own and carry with them, regardless of which vendor built them or where they're running.

Not "this agent is in my tenant registry." Instead: "this agent can prove it controls did:aip:abc123 using Ed25519 cryptography, and here's its behavioral trust history."

That's what AIP provides:

pip install aip-identity
aip init
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One command: a cryptographic identity your agent owns. Not provisioned by IT, not tied to a tenant, not dependent on Microsoft or any vendor.

What This Actually Looks Like

Agent 365 model:

  • Agent exists in Microsoft tenant → registered in Agent Registry → monitored by Defender → governed by Purview
  • Cross-tenant agent calls → ??? (not addressed)

AIP model:

  • Agent generates Ed25519 keypair → derives DID → registers in decentralized network
  • Proves identity to ANY other agent via cryptographic challenge-response
  • Behavioral trust scored via observation-based PDR (Promise-Delivery Ratio)
  • Works across vendors, clouds, frameworks

They're not competitors. Agent 365 is excellent for internal governance. AIP solves the inter-agent trust problem that centralized registries can't touch.

The Convergence

The smart play is both:

  1. Use Agent 365 (or whatever your vendor provides) for internal agent governance
  2. Give each agent an AIP identity for cross-boundary interactions
  3. Use AIP's trust scoring to evaluate external agents before granting access
from aip_identity import ensure_identity

# Your agent gets portable identity in one line
agent = ensure_identity(my_agent)
# Now it can prove itself to any other AIP-aware agent
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Microsoft's announcement validates the problem. Strata's strategies validate the approach. Token Security's RSAC pitch validates the market.

But none of them solve the open, cross-vendor identity problem that the multi-agent future requires.

That's the gap AIP fills.


AIP is open-source agent identity infrastructure. pip install aip-identity — cryptographic identity, mutual verification, encrypted messaging, behavioral trust scoring. 645 tests, 19 registered agents, MIT licensed.

GitHub | Docs | Live Trust Observatory

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