To manage security efficiently in Dataverse, Azure Active Directory (AAD) Security Group Teams are recommended for groups of people. For Full-time employees and the Corporate governance auditing team, using AAD Security Groups allows administrators to manage environment access and security roles by simply managing group membership in Azure AD, ensuring scalability and compliance.

For Automation (such as service-to-service integrations or background processes), a Dataverse Application User is the correct method. This allows a Service Principal to interact with Dataverse without requiring a physical user license or interactive login, adhering to the principle of least privilege and non-interactive authentication.

Microsoft Learn: "Manage access to environments using security groups." Section: Use Azure AD security groups to manage environment access. (2024/2025).

Microsoft Learn: "Manage application users in the Power Platform admin center." Section: Create an application user. (2024/2025).

Microsoft Power Platform Documentation: "Security in Microsoft Dataverse." Section: Team types - AAD security group teams. (Standard environment security architecture).

Microsoft Learn: "Team types in Dataverse." Sub-section: Group teams (Azure AD).