Microsoft 365 tenant · Applications, consent & AI agents

Block high-risk AI agents with Conditional Access

When it fails: AI agents flagged as high risk keep access to organizational resources. When ID Protection detects that an agent identity is likely compromised, nothing stops it from continuing to call Microsoft Graph and other resources with its permissions.

CB-M365-APPS-018highactivemanualprofile baseline

Description

A Conditional Access policy targets All agent identities, with the Agent risk condition set to High, on All resources, and grants Block. A second policy with the same settings targets agents' user accounts (agent users) when the tenant has any.

Agent risk is a preview feature. Conditional Access for agents also requires an Agent 365 or Microsoft 365 E7 licence in addition to Entra ID P2; the control does not apply to a tenant without agent identities.

Rationale

AI agents act autonomously with delegated or application permissions, often across mail, files and line-of-business data. A compromised or hijacked agent (prompt injection, stolen blueprint credential, anomalous token use) can exfiltrate data at machine speed. Microsoft Entra ID Protection computes a risk level for agents; blocking high-risk agents stops the activity until an administrator investigates and dismisses or confirms the risk.

Impact

A legitimate agent flagged as high risk stops working until the risk is remediated. Agents that are not represented as agent identities in Microsoft Entra (for example agents that use a regular application registration) are not covered.

Applies when

Requires: Microsoft Entra ID P2

Audit

  1. Sign in to the Microsoft Entra admin center (https://entra.microsoft.com) as at least a Security Reader.
  2. Browse to Entra ID > Conditional Access > Policies.
  3. Find a policy with State = On where:
    • Users, agents or workload identities > What does this policy apply to? = Agents, Include = All agent identities, with no exclusion;
    • Conditions > Agent risk includes High;
    • Target resources includes All resources;
    • Grant = Block access.
  4. If agent users exist, check for an equivalent policy that targets agents' user accounts.
  5. Alternative with Graph (scope Policy.Read.All): GET https://graph.microsoft.com/beta/identity/conditionalAccess/policies and look for a policy whose conditions target agent identities with high agent risk and whose grant control is block.
  6. Fail if no such policy exists or if it is in Report-only or Off.

Remediation

  1. Sign in to the Microsoft Entra admin center as at least a Conditional Access Administrator.
  2. Browse to Entra ID > Conditional Access > Policies and select New policy.
  3. Name it, for example AGT - Block high-risk agents.
  4. Users, agents or workload identities > What does this policy apply to? > Agents > Include > All agent identities.
  5. Target resources > Include > All resources.
  6. Conditions > Agent risk > Configure = Yes, select High.
  7. Grant > Block access.
  8. Set Enable policy to Report-only, review the results in the sign-in logs, then switch it to On.

Rollback

Set the policy to Report-only or Off.

References

Mappings

FrameworkIDRelation
NIST SP 800-53 Rev. 55.1.1AC-2(12)related
NIST SP 800-53 Rev. 55.1.1AC-3related
CISA SCuBA Microsoft 365 Secure Configuration Baselines2.0.0MS.AAD.9.1v1equivalent

How this control relates to the other framework's: equivalent, stricter, looser, partial or related.

Threats mitigated

  • related CB-M365-APPS-019 Govern AI agent identities (ownership, sponsors, credentials and privileges)
  • related CB-M365-TENANT-020 Restrict Copilot web search, agents and third-party AI providers
  • related CB-M365-AUTH-031 Require MFA for risky sign-ins and block sign-ins at the highest risk levels

People and lifecycle

Authors
Introduced inv0.1.0
Created, updated2026-10-24, 2026-10-24
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