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- 🎮 The Next Input — Issue #226
🎮 The Next Input — Issue #226
The Medicare Hack & The Blast Radius

⚡ The Briefing — 60 sec
Albanese says OpenAI agent hacked Medicare Yikes. This is kinda fucked, hey. Agents are incredibly cool right up until “autonomous research task” somehow ends with unauthorised access to Medicare systems. There’s your reminder that capability without containment gets real-world consequences very quickly.
YouTube will let you build your own algorithm with AI If it rolls me anime, speedruns and three-hour tangents on Modern Monetary Theory, then it’s a banger. Honestly, letting users tell the algorithm what they actually want instead of reverse-engineering whatever demon lives inside the recommendation engine sounds pretty refreshing.
OpenAI reportedly developing Aeon AI agent to compete with Grok Bot Might drop Dev Day. Pure speculation for now, but the direction makes sense: persistent agents are quickly becoming the next frontier-lab battleground. Chat was step one. “Go do the thing for me” is step two.
🛠️ The Playbook — Agent Blast-Radius Engine
Mission
Design AI agents so a bad decision, compromised prompt or unexpected behaviour can only damage the smallest possible part of your environment.
Difficulty
Advanced
Build time
4–6 hours
ROI
Lets businesses deploy useful autonomous agents while dramatically reducing the consequences of agent failure or compromise.
0) Why This Matters
The AI industry is racing towards persistent agents.
Agents that:
browse
research
write
message
purchase
schedule
access internal systems
execute multi-step work without constant supervision
That is where the value gets interesting.
It is also where “the model made a mistake” stops being cute.
If an assistant produces a bad paragraph, you fix the paragraph.
If an agent has credentials, tools and network access?
A bad decision can become an incident.
The answer is not merely making the model safer.
It is designing the surrounding system so failure stays small.
1) Architecture
Component | Tool | Purpose | Owner | Failure mode |
|---|---|---|---|---|
Agent identity | Microsoft Entra ID | Gives each agent its own scoped identity | Security | Agent inherits human-level access |
Tool gateway | API Management / MCP gateway | Controls which systems an agent can call | Engineering | Agent discovers unintended tools |
Execution sandbox | Docker / isolated VM | Separates agent activity from production | Platform | Agent reaches host resources |
Policy engine | LangGraph + deterministic rules | Enforces action and delegation boundaries | AI Ops | Model reasoning overrides policy |
Secrets layer | Azure Key Vault | Issues narrowly scoped credentials when required | IT | Long-lived secrets leak |
Observability | OpenTelemetry / Microsoft Defender | Records actions and detects anomalous behaviour | Security | Incident spreads before detection |
2) Workflow
Give every production agent a separate identity and explicit business purpose.
Expose only the tools required for that purpose.
Place execution inside an isolated environment with restricted network access.
Issue credentials dynamically rather than exposing standing secrets.
Require human approval when an action crosses financial, customer or system boundaries.
Automatically isolate the agent when behaviour exceeds defined thresholds.
3) Example Prompts
Blast-Radius Review
You are an AI agent security architect.
Review the following agent:
Purpose:
[DESCRIPTION]
Tools:
[LIST]
Permissions:
[LIST]
Systems accessed:
[LIST]
Determine the maximum damage this agent could cause if:
- its prompt is compromised
- the model behaves unexpectedly
- credentials are leaked
- a tool returns malicious instructions
- the agent repeatedly retries a failed action
Return:
1. blast radius
2. critical exposure paths
3. permissions to remove
4. isolation requirements
5. approval gates
6. emergency containment procedure
Tool Permission Audit
Review the tools available to this AI agent.
For each tool classify:
- REQUIRED
- OPTIONAL
- APPROVAL ONLY
- PROHIBITED
Assess:
- read permissions
- write permissions
- external communications
- destructive actions
- financial actions
- access to credentials
- ability to delegate to other agents
Design the minimum viable toolset required to complete the agent's task.
Agent Incident Simulation
Simulate a compromised AI agent inside the following environment:
[ARCHITECTURE]
Test scenarios:
- prompt injection
- credential discovery
- unauthorised data retrieval
- attempted privilege escalation
- external data exfiltration
- destructive action
- excessive autonomous retries
For each scenario return:
1. attempted action
2. control that should stop it
3. expected containment
4. evidence logged
5. recovery procedure
4) Guardrails
Give agents separate identities from human users.
Deny access by default.
Never expose standing production credentials.
Restrict outbound network access wherever possible.
Require confirmation before irreversible actions.
Enforce limits outside the model itself.
Set hard ceilings on retries and delegation.
Log every consequential tool call.
Maintain an independent emergency shutdown mechanism.
5) Pilot Rollout — 3 hours
Choose one existing agent with access to business systems.
Document every permission, tool, credential and network destination it can reach.
Remove anything not essential to the stated workflow.
Place execution inside an isolated environment with short-lived credentials.
Simulate prompt injection and unauthorised access attempts.
Confirm the agent can be isolated instantly without disrupting unrelated systems.
6) Metrics
Agent permissions per workflow
Percentage of agents using separate identities
Standing credentials eliminated
Approval-required actions
Policy-blocked actions
Unauthorised access attempts
Mean time to isolate an agent
Blast-radius test failures
Complete tool-call trace rate
Agent-related security incidents
Pro Tip: Assume your agent will eventually do something stupid. Architect the system so stupid stays cheap.
🎯 The Arsenal — Tools & Platforms
Microsoft Entra ID · creates scoped identities and access policies for agents · Link
Azure Key Vault · protects and dynamically provides credentials and secrets · Link
LangGraph · controls state, tools, approvals and agent execution paths · Link
Docker · isolates agent execution from production infrastructure · Link
OpenTelemetry · traces agent actions across complex workflows · Link
Copy-paste prompt block:
You are designing a blast-radius containment architecture for an AI agent.
Agent purpose:
[DESCRIPTION]
Tools:
[LIST]
Systems accessed:
[LIST]
Sensitive data:
[LIST]
Current permissions:
[LIST]
External services:
[LIST]
The architecture must:
- assign the agent a separate identity
- enforce deny-by-default access
- minimise tools and permissions
- isolate execution
- restrict network connectivity
- use short-lived credentials
- require approval for consequential actions
- detect prompt injection and privilege escalation
- enforce retry and delegation limits
- preserve full execution traces
- support immediate isolation and shutdown
Return:
1. architecture
2. permission matrix
3. tool-access policy
4. network policy
5. secrets strategy
6. approval gates
7. monitoring rules
8. incident-response process
9. pilot rollout
10. operational metrics
đź’ˇ Free Office Hours
Agents are rapidly moving from answering questions to operating systems on our behalf. That is where the productivity upside gets serious—and where security architecture needs to stop being an afterthought.
Book here: https://calendly.com
A fast answer and a coordinated one are not the same thing. When AI resolves a B2B customer issue without looping in the teams who have to deliver on it, you get confident responses nobody actually signed off on.
A new briefing paper from Harvard Business Review Analytic Services, sponsored by Front, examines the coordination gaps that open up when transactional AI tools meet multi-team B2B service, and how leading companies are using AI to close those gaps instead of widening them.
Read the briefing paper for the questions to ask before your next AI investment.
🕹️ Game Over
YouTube wants you to design your algorithm.
OpenAI apparently wants to give you another agent.
And one of its agents just wandered somewhere it absolutely shouldn’t have.
Busy week for autonomy.
— Aaron Automating the boring. Amplifying the brilliant.
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