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Currently, Service Principal authentication works with Fabric Data Agents connected to Lakehouses but fails when the agent is connected to a Semantic Model. This limitation prevents building fully automated applications or backend services that interact with Semantic Model–based agents without requiring interactive user authentication.
Supporting Service Principals (or Managed Identities) for Semantic Model data access in Data Agents would enable secure server-to-server scenarios and make it easier to embed Fabric AI experiences into custom applications and enterprise workflows.
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