Engineering Manager

Optimizing AI agent token costs: Okta's new MCP scoping strategy explained. August 14, 2026 Okta has introduced a solution to decrease AI agent token costs through the identity-scoped Model Context Protocol (MCP). This innovative approach limits the number of tools displayed to an AI agent, thereby reducing the associated token consumption referred to as "tool tax," which involves extra tokens used during model calls due to unnecessary tool considerations. The challenge of token overhead. When an AI agent initiates a model call, it receives information about every tool within the MCP server, including schemas and parameters. Okta found this leads to unnecessary token use for tools the agent may never actually utilize. In practice, the costs are incurred even before the agent makes any tool calls, particularly when a request is denied, and tokens can't be reclaimed. Reducing tool visibility. Okta's strategy effectively filters tool visibility based on the permissions assigned to an agent and its associated user. In internal simulations, the company noted that certain permission configurations could reduce visible tools by over 90%, demonstrating a combined reduction in token costs as well. Implementing MCP tool schemas. MCP servers facilitate the connection of AI agents to various tools and datasets. Okta highlights the burden of prompt overhead caused by these connections to numerous services, such as Google Workspace and Slack. Each active user utilizes tokens for every agent call, leading to compounded costs when multiple tools are involved. Optimized filtering mechanism. To combat this issue, Okta employs a filtering mechanism as part of its "blueprint for the secure agentic enterprise." This initiative promotes organizations to determine the specific tools agents can access, rather than providing unrestricted access to an entire MCP server. Using the Okta dashboard, administrators can configure what tools individual identities may employ, delivering a tailored tool set to each agent. Cost implications and organizational benefits. Okta's methodology not only aims to lower token expenses but also reduces security risks by limiting the number of tools visible to unauthorized identities. By implementing scoped access, Okta grants a "least-privilege" access approach which diminishes the exposure of potentially harmful tools should an identity be compromised. Conclusion. This detailed framework allows for optimized resource management while maintaining security. As organizations look to leverage the capabilities of AI in their operations, Okta's solution stands out as a means to balance cost management with effective governance. For further information, refer to Okta's official page: Okta. Discover the pinnacle of WordPress auto blogging technology with AutomationTools.AI. Harnessing the power of cutting-edge AI algorithms, AutomationTools.AI emerges as the foremost solution for effortlessly curating content from RSS feeds directly to your WordPress platform. Say goodbye to manual content curation and hello to seamless automation, as this innovative tool streamlines the process, saving you time and effort. Stay ahead of the curve in content management and elevate your WordPress website with AutomationTools.AI - the ultimate choice for efficient, dynamic, and hassle-free auto blogging. Learn More

KPS and Okta: new partnership for identity and access management. 07. August 2026 Unterföhring/Munich, 07.08.2026 - KPS AG has announced a new partnership with Okta Inc., one of the world's leading providers of identity and access management. With this move, KPS is expanding its consulting portfolio to include a field that is steadily growing in importance: the secure management of access to systems, data and applications. A targeted offering for concrete needs. Okta provides solutions - including Auth0 - that enable organisations to manage authentication and authorisation centrally for their employees, customers and partners. For clients with a concrete need to act - whether due to rapidly growing user numbers, complex partner structures or regulatory requirements - KPS will, together with Okta, be able to offer an additional option going forward. What this means for clients. More control, less risk. Rather than addressing identity questions in isolation or after the fact, organisations working with KPS and Okta can build access security in from the outset, so that it keeps pace with growing demands - without compromising on user-friendliness. Stefan Metzger, Managing Director at KPS, explains: "Identity and access security are becoming increasingly urgent for many of our clients. With Okta, we can now offer a strong, targeted response" Sven Kniest, Vice President Central & Eastern Europe at Okta, emphasises: "The partnership with KPS is an important milestone for our growth strategy in Europe. KPS has the expertise and reach to make identity a central enabler of digital transformation, helping our shared clients to accelerate both innovation and security in equal measure"

Okta agreed to acquire AI identity security startup Permiso Security in a deal valued at just under $200 million, according to a source familiar with the transaction. The nearly all-cash acquisition is expected to close in Okta's third quarter of fiscal 2027. Permiso, which emerged from stealth in 2022, develops software that detects suspicious activity in cloud environments after users or applications gain access. The startup recently expanded its platform to monitor AI agents and other machine identities. Co-founded by former FireEye executives Paul Nguyen and Jason Martin, Permiso has raised approximately $29 million to date, including an $18.5 million Series A round in April 2024 led by Altimeter Capital. The acquisition strengthens Okta's capabilities in securing AI agents and non-human identities alongside its core identity management business.