TL;DR: AI agents need credentials to reach data and tools, but human-centric and static machine patterns often overscope access, weaken auditability, and complicate revocation, according to Descope. The governance problem is not just token handling, it is that current IAM assumptions break when agents act non-deterministically across multiple services in one workflow.
Editorial analysis by NHI Mgmt Group, based on content published by Descope: “AI Agent Credential Management Best Practices”.
Key questions
Q: What breaks when AI agents inherit access from users and service accounts?
A: The main failure is that inherited access can be broader than the agent’s actual task, so privilege becomes easier to reuse than to govern.
Q: When do AI agent credentials create more risk than they reduce?
A: They create more risk when they are long-lived, over-scoped, hard to revoke, or copied into code and prompts.
Q: How can teams tell whether AI access is actually under control?
A: Look for evidence that access is limited by purpose, not just by account.
Practitioner guidance
- Define agent-specific identities Issue each agent its own identity and treat delegation as a separate governance object from the user who initiated the task.
- Replace standing access with task-scoped tokens Use short-lived OAuth tokens for the exact tool, action, and resource set required by the current task.
- Remove raw downstream secrets from agent runtime Keep API keys and service account secrets in a managed credential vault on the server side so the agent never handles the raw credential directly.
Bottom line: AI agent credential management fails when organisations reuse human sessions, shared accounts, or long-lived secrets for software that makes runtime access decisions.
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AI agent credential management exposes an identity governance gap, not just a token-handling problem. Agents do not fit the assumptions behind human sessions or static machine identity because their access path is decided at runtime across multiple tools. That means the real issue is whether identity policy can express task-scoped authority, attributable delegation, and bounded runtime access. Practitioners should treat this as a governance redesign problem, not a secret-storage problem.
A few things that frame the scale:
- AI-related credential leaks surged 81.5% year-over-year in 2025, with the surrounding AI infrastructure leaking 5x faster than core LLM providers, according to the State of Secrets Sprawl 2026.
- 70% of organisations grant AI systems more access than they would give a human employee performing the exact same job, according to the 2026 Infrastructure Identity Survey.
A question worth separating out:
Q: Should organisations use a credential vault for AI agents or keep secrets in environment variables?
A: A credential vault is the safer model because it keeps downstream secrets out of the agent process and lets the server manage issuance, refresh, rotation, and revocation centrally. Environment variables expose raw secrets to the runtime, which makes compromise and accidental reuse much harder to control.
👉 Read our full editorial: AI agent credential management exposes the gaps in IAM controls