Enable Service Principal based Authentication for Dataverse shortcut

At present, the only supported method to access Customer Insights data within Microsoft Fabric is by creating a Dataverse shortcut. This shortcut establishes a connection to the underlying Dataverse environment where Customer Insights stores its data.

However, this integration currently supports only delegated permissions through OAuth2 with user credentials. 

This means that access is tied to an individual user's identity and session, which introduces several limitations.

Security and Operational Limitations

1. No support for service principals:

   • Prevents the use of managed identities or Azure AD app registrations, which are essential for secure, automated, and scalable enterprise integrations.

2. Tight coupling to individual users:

   • If the user who created the shortcut is removed or disabled, the connection breaks, potentially disrupting critical data flows and processes.

3. Increased risk and complexity:

   • Delegated access increases the risk of credential exposure and complicates access management, especially in environments with strict compliance or auditing requirements.

Suggested Enhancement

• Enable Dataverse shortcuts to support service principal authentication using the client credentials flow, allowing secure and automated access without relying on individual user accounts.