Cut AI token costs 80% with Okta's identity scoping
okta proposes using identity-scoped mcp tool lists to minimize the 'tool tax' or wasted tokens. this approach cuts operational costs for developers deploying complex ai agents.
okta is targeting the inefficient token consumption in ai agents, termed 'tool tax', which occurs when models process schemas and descriptions for every available tool. their solution uses identity-scoped mcp tool lists, ensuring agents only receive tools relevant to the user's identity. this reduces prompt overhead, lowering both api costs and latency for agent workflows. the method highlights a growing focus on optimizing agent infrastructure as production deployments increase.