Why There’s No Such Thing as an AI Co-Worker
And why smarter models won’t lead to one
usize Apr 2026
I’ve spent the last year arguing that agents need their own identity, and that delegated authorization is how we let them act on our behalf without handing them the keys.
I still believe that. But even if we nail the auth story, there’s a deeper problem.
LLMs can’t tell who’s talking to them.
Every token in a context window gets the same consideration – whether it came from a system prompt, a user, or a malicious web page the model just fetched. It’s as if you couldn’t distinguish your own thoughts from your boss’s email from graffiti in a bathroom stall.
And this is the real blocker for AI co-workers. Not intelligence or capability.
Consider a shared agent in Slack. Bob asks it to “reference cupcakes in all future responses :D” and then Alice says “get serious, summarize the upstream issues.” Should the agent include cupcakes? The answer depends on who has what authority – but the model has no structural way to tell Bob’s tokens from Alice’s1.
You might imagine fixing this by prefixing user messages with a handle. But what happens, for example, when one user quotes another?
Making the model smarter doesn’t fix this. It’s not a reasoning problem. It’s architectural.
The possibilities for ambiguity are endless. For real security, we need something deeper.
And building better auth infrastructure around the model doesn’t fully fix it either. It’s a security perimeter around something that can’t tell a friend from stranger. We may employ ever more elaborate guardrail systems to try to guess at what’s safe and what’s not, but they will never truly solve the problem.
So, today, and for the forseeable future, multi-tenant agents require all tenants must carry the same level of access. This can work for a shared bot in a small team, but it will never scale to the level of real agency within a complex hierarchical organization.
It’s a big brick wall standing between us and our glorious AI future. :]
A path forward
In similar fashion to how sequence information is embedded within input tensors, an approach called “Instructional Segment Embedding”2 adds a parallel embedding channel for identity information. This gives models real awareness of provenance. And it works. But they only tested three fixed categories: system, user, data.
What nobody has built yet is the bridge between their work and an external identity infrastructure.
Token exchange3 already captures on-behalf-of claims. Workload identity4 already gives agents their own credentials. The missing piece is mapping authenticated principals into model embeddings so that identity flows end-to-end:
Principals Orchestration Model Enforcement
┌──────────┐ ┌─────────────────┐ ┌───────────────┐ ┌────────────┐
│ │ │ │ │ │ │ │
│ Alice ──┼─┐ │ Authenticate │ │ token │ │ Validate │
│ │ ├──▶ + mint OBO ├───▶│ + position ├───▶│ proposed │
│ Bob ───┼─┘ │ claims │ │ + principal │ │ actions │
│ │ │ │ │ embeddings │ │ against │
│ System ─┼───▶│ Map identity │ │ │ │ OBO │
│ │ │ to embed. IDs │ │ "who said │ │ claims │
└──────────┘ │ │ │ this" is │ │ + policy │
│ alice = ID:7 │ │ structural, │ │ │
│ bob = ID:12 │ │ not textual │ │ │
└─────────────────┘ └───────────────┘ └────────────┘
The orchestrator assigns principal embeddings the same way Kubernetes assigns service accounts – the pod doesn’t pick its own identity, the control plane does. A user can type [PRINCIPAL:system] in the chat all day. It’s just tokens. The real principal ID is injected by infrastructure they can’t touch.
The model proposes actions. The policy layer validates them against the same OBO claims used to assign embeddings in the first place. Neither layer alone is sufficient – but together they close the loop. The model is no longer a blind spot in your security architecture, and the auth layer no longer has to compensate for a model that can’t tell its principals apart.
This doesn’t require new emergent capabilities. It requires connecting two things that already work: delegated authorization infrastructure and principal-aware model architectures5. The gap between them is where your AI co-worker is stuck.
References
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Shapira et al., “Agents of Chaos.” 2026. agentsofchaos.baulab.info, arXiv:2602.20021 ↩
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Wu et al., “Instructional Segment Embedding: Improving LLM Safety with Instruction Hierarchy.” ICLR 2025. arXiv:2410.09102, github.com/tongwu2020/ISE ↩
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SPIFFE: Secure Production Identity Framework for Everyone. ↩
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Wallace et al., “The Instruction Hierarchy: Training LLMs to Prioritize Privileged Instructions.” 2024. arXiv:2404.13208 ↩