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Bot or Not? Why Incentives Matter More Than Identity

Robotic Hand Touching on Black Background. 3D Render. Artwork to represent bots and their incentives.

“Let’s start with a confession: I love bots. Or at least, I love the idea of them.”

They’re efficient, tireless, and, if designed well, can be downright helpful. (They can also be downright unhelpful, but that’s a topic for a different blog post.) But the incentives around bot traffic are completely out of balance, and that makes things messy.

Not all bots are bad, but they all cost someone something. Until we fix the incentives for identifying and managing automated traffic, we’ll keep having the same tired fight: block all bots and break useful functionality, or get overrun by them and save our content and services.

A Digital Identity Digest
Bot or Not? Why Incentives Matter More Than Identity
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What do we mean by “bot”?

Let’s clarify the terminology. “Bot” is a term that covers everything from benign automation to outright criminal activity. For the purposes of this post, we’re talking about non-human actors who interact with web services, some with permission and some without.

That includes:

Some are essential, some annoying, and some outright hostile. According to the 2025 Imperva Bad Bot Report, automated traffic now makes up 51% of all web traffic, with 37% of that classified as malicious. Cloudflare Radar data has its own stats that indicate bots account for approximately 30% of global web traffic.

Regardless of the type of bot, they all generate load at a rate faster than humans can manage on their own. And that’s where things get tricky.

Identity is only the first step

There’s been a lot of work recently on figuring out how bots can identify themselves in a standardized, trustworthy way. The Web Bot Authentication discussion at the IETF is a good example. More and more content and service providers are demanding the ability to identify and/or differentiate bot traffic from human. Fewer (but not zero) bot developers are eager to support that goal. A handful want to be good actors, to say clearly, “Hey, I’m not a human, but I’m not here to cause trouble either.”

It probably goes without saying (but I’m going to say it anyway): If you’re building a polite, well-behaved bot, the last thing you want is to be lumped in with attackers. But the other side of the equation is the cost to the site your bot is connecting to. Knowing a bot’s identity doesn’t change the fact that other organizations’ infrastructures are paying the price; they may want to block you to protect themselves.

Even a verified, well-meaning AI agent scraping a site to summarize its content for someone’s personalized feed still hits that site’s CDN, database, and cloud compute budget.

And if they’re not charging for that access—if there’s no business model that connects bot traffic to revenue—then the only thing that providing some form of identity to a bot does is to give that polite visitor a name tag before they raid the pantry.

Why incentives matter

The developers building these bots often say, “We just want access. Don’t block us.” And the site operators reply, “We just want you not to break our infrastructure.”

That’s not a disagreement. That’s a misaligned incentive.

From the bot developer’s perspective:

From the service provider’s perspective:

Even well-behaved bots can DDoS you by accident. You can’t fix that with certificates or signatures.

Emerging ideas from the Web Bot Auth conversation

The Web Bot Auth mailing list had some smart commentary recently on what incentives actually look like:

All of that leads to an observation: identity is useful, but it doesn’t answer the real question. Who decides if the bot is worth the load it brings? That’s a value judgment that falls outside the scope of identity systems. What it does highlight is that services can’t ignore that automated traffic is hitting their infrastructure, and they need tools, not just blind faith, to manage it.

What could a better system look like?

Imagine a world where bots:

This isn’t a fantasy. We already do this for humans via OAuth scopes, rate limiting, and usage tiers. The challenge is applying it to non-human actors in a way that scales.

(As an aside here, there are two people I recommend you follow if you’d like to dig into the gory, gory details of NHI taxonomy and the practical realities of NHI: Erik Wahlstöm and Pieter Kasselman.)

What you can do today

If you’re a product manager or DevOps lead, this doesn’t have to wait on a new IETF spec. You can start with:

And if you’re building a bot:

Final thought

This isn’t about punishing bots or yelling at them to get off your lawn. Automation is here to stay. But if we want to coexist, we have to stop pretending that identification alone is the solution.

Identity without incentives is just surveillance.

Incentives without constraints are just spam.

Let’s aim for something better than either.

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Transcript

Bots, Incentives, and Identity

Hi, welcome back to A Digital Identity Digest. I’m Heather Flanagan, and today we’re talking about bots.

[00:00:36] Speaker A: Not the horror stories, not the buzzwords, but the real, practical tension that comes up when your system starts to feel the weight of automated traffic.

If you’re a product manager, DevOps lead, or identity architect managing automated requests—or even a bot developer or AI agent creator—this episode has insights for you.

Because here’s the challenge:


What We Mean When We Say Bot

Bots cover a wide spectrum of activity. They can mean:

Some are essential, some are annoying, and some are harmful. But regardless of intent, they all place a burden on infrastructure—and that cost usually lands on the target system.


Identity Is Only the First Step

Identity is one of my favorite topics, but identity alone doesn’t solve the bot challenge.

There is growing interest in creating standardized, trustworthy ways for bots to identify themselves. For example:

However, many bot developers aren’t eager to adopt these practices because:

So the tension remains: without incentives for both sides, we’re stuck in the cycle of block everything or get overrun.


Why Incentives Matter

Bot developers want access without being mistaken for abusers.
Site operators want reliable service for their human users.

This isn’t pure conflict—it’s misalignment.

Identity management can’t make that judgment. It requires a value framework.


Emerging Ideas for Bot Incentives

Public discussions around bot authentication highlight some promising concepts:

This points toward load-aware incentives. Imagine:

In other words, an API-style approach with access tiers.


Designing a Smarter System

We already use systems like OAuth scopes, rate limits, and usage quotas for humans. Why not for bots?

A smarter system could include:

Companies like Cloudflare are already experimenting in this space, and it’s worth tracking their efforts.


What You Can Do Today

You don’t have to wait for global standards. There are steps you can implement right now:

By doing this, you’re not punishing automation—you’re designing for it, while keeping your infrastructure sustainable.


Closing Thoughts

At the end of the day:

The goal is something more useful—balanced systems where automation and infrastructure coexist productively.

Thank you for listening. You can find the full blog post with links and further reading at sphericalcowconsulting.com. Please share this with colleagues, encourage them to subscribe, and stay tuned for next week’s episode.

[00:08:59] Speaker B: And that’s it for this week’s Digital Identity Digest.

[00:09:03] Speaker A: If it made things a little clearer—or at least more interesting—share it with a friend or colleague.

[00:09:04] Speaker B: Connect with me on LinkedIn @hlflanagan. If you enjoy the show, subscribe and leave a rating wherever you listen.

Stay curious, stay engaged, and let’s keep these conversations going.

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