Tag: Power Platform Governance

  • Entra Agent ID Gives Every Dataverse Agent Its Own Identity

    Entra Agent ID Gives Every Dataverse Agent Its Own Identity

    Diagram of Entra Agent ID Dataverse identities assigning security roles to individual AI agents

    On 6 August 2026, Microsoft announced Entra Agent ID for Dataverse. Every AI agent that touches Dataverse can now get its own dedicated identity in Microsoft Entra, show up as a first-class agent user in the environment, and receive security roles like any other principal. It matters because it retires the worst pattern in agent deployments today: agents doing real work under a borrowed human or service account with broad permissions and no attributable audit trail.

    Entra Agent ID makes agents first-class users in Dataverse

    The mechanics are straightforward, which is exactly what you want from an identity feature. An agent gets an Entra Agent ID, which is a real directory object, not a tag on someone else’s account. That identity maps to an agent user inside Dataverse. From there, everything an admin already knows how to do applies. You assign security roles scoped to exactly the tables and privileges the agent needs. You see the agent’s activity in audit logs under its own name. You manage its lifecycle in the same admin surfaces where you manage users, app registrations, and service principals.

    None of this is a new concept. Service principals have existed for years. What is new is that the plumbing now reaches agents specifically, so a Copilot Studio agent writing to Dataverse does not need to impersonate anyone. The identity is the agent’s own, end to end.

    Borrowed credentials were the governance debt every agent deployment carried

    I keep hearing the same story from people at other organisations rolling out agents. The agent works. It creates records, updates statuses, closes cases. Then security or internal audit asks a simple question: who updated this record? And the answer is a human’s name attached to actions no human took. Usually the maker’s account, because that is what the connection was created with. Sometimes a shared service account with System Administrator, because someone hit a permissions error six months ago and fixed it the fast way.

    That pattern is not a small smell. It breaks least privilege, because the agent inherits everything the borrowed account can do. It breaks auditability, because the log tells you a person did something they never did. And it breaks lifecycle management, because when the maker leaves the company and their account gets disabled, the agent dies with it. Poof. Production automation down because of an HR event.

    I made a version of this mistake myself building an early internal agent. The connection ran under my account, and every record it touched carried my name. Harmless until someone asked why I had modified two hundred records at 3 AM. I had not. The agent had. Explaining that distinction to an auditor without a dedicated identity is not a conversation you want twice.

    This also completes a picture Microsoft has been assembling all year. Dataverse as the agent data platform gave agents skills, knowledge sources, and feedback loops. What it did not have was an answer to the identity question. Skills tell an agent what to do. Identity determines what it is allowed to do and who is accountable when it does it. You cannot govern the first without the second.

    Agents that write to production Dataverse should migrate first

    Not every agent needs this on day one. A read-only agent answering questions from a knowledge source under a scoped service account is a low-grade risk. The agents that should move first are the ones writing to production data. Anything creating or updating records in tables that feed reporting, billing, or compliance processes. Those are the deployments where the audit trail question is not hypothetical, it is one incident away.

    The trade-off is real work. Each agent identity needs a security role designed for it, and designing least-privilege roles takes longer than granting System Administrator and moving on. You also add lifecycle overhead: more principals to review, more roles to maintain. I think that cost is worth paying, for the same reason I argued when the Dataverse plugin for coding agents shipped that running it as System Administrator was the wrong setup. Broad permissions are always faster until the day they are catastrophically not. The same principle applies when you are running a Power Platform licensing audit before you ship: knowing exactly which identities hold which permissions is far easier to audit up front than to untangle after the fact.

    If I were planning a rollout, I would inventory every agent connection today and flag any that resolve to a human account. That list is your migration order. In my experience, the teams that treat identity as a prerequisite ship slower in week one and faster every week after, because they never hit the retrofit project. If you are also thinking about how agent tools should be scoped and named so that least-privilege roles map cleanly to actual capabilities, How to Design Tool Definitions for Copilot Studio Agents is a useful companion read.

    Identity was the last missing layer under enterprise agents, and now the interesting question is how fast admins make it mandatory.

    Source: Secured and Governed your AI Agents: Microsoft Entra Agent ID for Dataverse (Microsoft Power Platform Blog).

    About the author: Halilcan Soran is a Senior Business Analyst at Visa working on process optimization with Power Platform, RPA, and agentic AI. He previously led a 15-person team at Thomson Reuters, where the Power Automate solutions he built started his automation career. More about Halilcan · LinkedIn

  • Dataverse July 2026 Update Extends the Agent Data Platform to More Coding Marketplaces and Certified MCPs

    Dataverse July 2026 Update Extends the Agent Data Platform to More Coding Marketplaces and Certified MCPs

    Dataverse July 2026 update expanding agent data platform with certified MCPs

    Microsoft shipped the July 2026 Dataverse update on July 6, and reading it back to back with the previous months makes the pattern obvious. The dataverse july 2026 update is not about new agent features. It is about reach and governance. The Dataverse plugin is expanding into more coding agent marketplaces, MCP tool coverage is growing, partner MCPs are getting certified, and internal MCPs are being pulled under enterprise governance.

    If you have been paying attention to the last three months of Dataverse announcements, this one fits the arc. Microsoft is turning Dataverse into the substrate every agent on the stack talks to, and now they are dealing with the mess that comes with that.

    What shipped in the July 2026 Dataverse update

    Four things landed together.

    First, the Dataverse plugin for coding agents is being pushed into more coding agent marketplaces. This is the same plugin that fixed the hallucination problem for coding agents generating Power Platform code. Wider distribution means more developers will hit it through their existing IDE and agent setups instead of having to hunt for it.

    Second, MCP tool coverage is growing. The Dataverse MCP server now exposes more of the platform surface, which continues the direction we saw when the tool shape shifted toward metadata inspection. Tighter tool boundaries, more of them, less guessing by the agent.

    Third, partner MCPs can now be certified. This is the one I think most teams will underestimate. Microsoft is publishing a certification path so third-party MCP servers can carry a trust signal. Think of it like connector certification, but for the agent tool layer.

    Fourth, internal MCPs get pulled under enterprise governance. DLP, environment scoping, audit. The plumbing you would expect from a Power Platform connector, applied to the MCP tool surface an agent can call.

    Why the certified MCP and governance angle matters

    Here is the part I keep thinking about. Every team I talk to that has been experimenting with agents in the last six months has quietly wired up MCP servers from wherever. Community repos. Vendor previews. Somebody’s GitHub. The tool surface an internal agent can reach is already sprawling, and nobody centralised the decision.

    Sound familiar? It is the same shape as the SharePoint site as a knowledge source problem I wrote about when knowledge sources and feedback loops shipped. Four makers, four wirings, no shared governance. MCP is worse because the surface is executable, not just readable.

    Certified partner MCPs are Microsoft’s answer to shadow adoption. Give platform teams a list of MCPs that carry a trust signal, register the ones that make sense, block the rest. The enterprise governance layer for internal MCPs is the other half. DLP policies that treat MCP tools like any other data movement. If you want to understand how the orchestrator evaluates tools before it ever calls them, how Copilot Studio agent tool selection actually works under the hood is worth reading alongside this update.

    The trade-off is real. Certification takes time. If your team needs a niche MCP that nobody has certified yet, you are either waiting or accepting risk. But the alternative is what I keep seeing on LinkedIn from people six months into agent projects. A tool surface nobody can inventory, and no clean way to answer the auditor when they ask what data the agent can touch. That sprawl is also one of the cleaner explanations for why AI agents fail in production when they worked fine in testing.

    What I would do with it this week

    I would not build a new agent this week. I would audit.

    Start with a simple inventory. Which MCP servers are already wired to any agent in your tenant. Where they came from. Who registered them. Whether they touch Dataverse, SharePoint, or anything with customer data. Most teams have never written this down.

    Then look at the certified partner MCP list as it lands and pick the two or three that actually match what your makers have been asking for. Register those under a governed environment. Publish the list internally. Say the quiet part out loud. If it is not on the list, it does not go into a production agent.

    Finally, get the Dataverse plugin for coding agents into the hands of the pro devs writing plugins and PCF controls. Not the citizen dev crowd. This is a pro dev tool and treating it otherwise misses the point. Scope it to a dev environment with a least-privilege app user, not System Administrator on production. I wrote about that setup in the original plugin post and it still applies.

    If you want to see how this ties back to the broader agent data platform direction, the Power Platform docs are catching up quickly and worth a scan. And if you want to compare notes on how other teams are handling MCP governance, I keep track of what people are saying on LinkedIn.

    The month the platform team gets ahead of MCP sprawl is worth more than the month you shipped one more agent.

    Source: Dataverse Is Your Agent Data Platform: Here’s What’s New in July 2026 (Microsoft Power Platform Blog).

    About the author: Halilcan Soran is a Senior Business Analyst at Visa working on process optimization with Power Platform, RPA, and agentic AI. He previously led a 15-person team at Thomson Reuters, where the Power Automate solutions he built started his automation career. More about Halilcan · LinkedIn