
In the race to build autonomous AI agents—software that can book flights, negotiate contracts, execute financial transactions, or run entire workflows on behalf of humans—a quieter but equally critical debate is unfolding behind the scenes.
How do you identify and authorise an AI agent?
Right now, several major technology communities are attempting to answer that question simultaneously. Groups such as the World Wide Web Consortium, the OpenID Foundation, the Decentralised Identity Foundation, and the Trust Over IP Foundation are all exploring mechanisms for identity, authentication, and delegation in what many now call the agentic economy.
Each community brings its own philosophy.
The World Wide Web Consortium focuses on core web architecture and decentralised identifiers. The OpenID Foundation specialises in authentication protocols like OAuth and OpenID Connect. The Decentralised Identity Foundation builds open infrastructure for self-sovereign identity systems. Meanwhile, the Trust Over IP Foundation focuses on governance frameworks and trust networks.
Individually, each effort is valuable.
Collectively, they risk creating a fragmented identity landscape just as AI agents begin to proliferate across the internet.
And the stakes are high.
3If autonomous agents are going to operate in financial markets, government services, enterprise systems, and consumer platforms, the world will need a reliable way to verify who or what is acting.
Without that, the agentic internet could quickly become a chaotic ecosystem of unverifiable bots.
Why fragmentation is inevitable
The risk of fragmentation is not simply the result of organisational rivalry. It is largely structural. Technology evolves far faster than standards bodies.
Developers building agent frameworks today cannot wait three years for formal protocols to emerge. They will ship systems using whatever identity mechanisms exist — API keys, OAuth tokens, decentralised identifiers, or proprietary authentication models.
6Meanwhile, standards organisations deliberate carefully, balancing security, interoperability, and governance.
By the time a standard is finalised, the ecosystem may already have moved on.
This dynamic has played out before. The early internet saw competing encryption protocols, rival messaging systems, and incompatible browsers before a handful of dominant standards emerged.
The same evolutionary process may now be happening with agent identity.
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The real goal is interoperability
The instinctive response to fragmentation is often to call for a single universal standard.
But the internet rarely works that way.
Instead, it evolves through layers. Different technologies coexist, but they communicate through shared interfaces. Email servers may run different software, but they all speak SMTP. Websites may be built with different frameworks, but they all rely on HTTP and TLS.
The same layered model may be the best path forward for agent identity.
Rather than forcing convergence on one protocol, the ecosystem may need to focus on shared primitives that allow different systems to interoperate.
These primitives could include portable identity artefacts such as decentralised identifiers, verifiable credentials, and authorisation tokens.
An AI agent might authenticate using one protocol while presenting credentials issued by another system, with trust frameworks defining how those credentials are validated.
In other words, the agent identity ecosystem may look less like a single standard and more like a modular identity stack.
Open implementations matter more than documents
One lesson from past internet standards is that specifications alone rarely drive adoption.
Working code does.
Open reference implementations—wallets, credential exchanges, agent authorisation frameworks—can serve as anchors for the ecosystem. When multiple communities build on shared open-source infrastructure, fragmentation often resolves itself organically.
Developers gravitate toward tools that work. And once those tools gain momentum, standards tend to follow the architecture already in use.
The importance of cross-foundation collaboration
Another way to reduce fragmentation is simple: collaboration.
If the W3C defines core identity primitives, the OpenID Foundation could create authentication profiles for agents. The Decentralised Identity Foundation could build the supporting infrastructure. The Trust Over IP Foundation could establish governance frameworks that determine how trust is established between networks.
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This kind of layered collaboration mirrors how the internet itself evolved.
No single organisation built the web. Instead, a loose constellation of standards bodies, open-source communities, and industry alliances shaped its architecture over time.
Agent identity may require the same approach.
A new kind of digital identity
What makes the challenge especially complex is that agent identity is fundamentally different from human identity.
A human identity system answers questions like:
- Who is this person?
Agent identity must answer additional questions:
- Who authorised this agent?
- What permissions does it have?
- Who is accountable for its actions?
An AI agent booking a meeting might have minimal privileges. One managing supply chains or executing financial trades might have enormous authority.
Identity systems must therefore support delegation chains, where humans or organisations grant agents specific capabilities—and where those capabilities can be audited or revoked.
This problem sits at the intersection of identity, authorisation, and governance.
And no single standards body currently owns all three.
Competitive convergence
If fragmentation sounds alarming, history suggests it may also be necessary. Innovation often begins with competing ideas. Over time, the ecosystem experiments discard weak approaches and converge around the solutions that prove scalable and secure.
The early internet did not begin with cleanly aligned standards. Neither did cloud computing, mobile ecosystems, or cryptocurrencies.
Agent identity may follow the same trajectory.
A period of experimentation—messy, decentralised, and occasionally incompatible—may ultimately produce stronger systems than a prematurely unified standard.
The infrastructure of the agentic economy
As AI agents begin acting autonomously across the digital economy, identity will become one of the most critical pieces of infrastructure.
Without reliable identity and delegation mechanisms, autonomous agents cannot safely interact with banks, governments, enterprises, or consumers.
But solving the problem will require more than a single protocol.
It will require an ecosystem — a layered architecture where multiple standards, technologies, and governance models can interoperate.
Fragmentation may be unavoidable.
The real question is whether the communities building agent identity today can ensure that their systems eventually connect.
If they do, the agentic internet could become as interoperable as the web itself.
If they do not, the next generation of AI agents may inherit a fragmented identity landscape just as complex—and contentious—as the early days of the internet.
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