diff --git a/src/System Application/App/AI/src/Azure OpenAI/AOAIAccountVerificationLog.Table.al b/src/System Application/App/AI/src/Azure OpenAI/AOAIAccountVerificationLog.Table.al
new file mode 100644
index 0000000000..e38e8380a4
--- /dev/null
+++ b/src/System Application/App/AI/src/Azure OpenAI/AOAIAccountVerificationLog.Table.al	
@@ -0,0 +1,35 @@
+namespace System.AI;
+
+table 7767 "AOAI Account Verification Log"
+{
+    Access = Internal;
+    Caption = 'AOAI Account Verification Log';
+    DataPerCompany = false;
+    Extensible = false;
+    InherentEntitlements = RIMDX;
+    InherentPermissions = X;
+    ReplicateData = false;
+
+    fields
+    {
+        field(1; AccountName; Text[100])
+        {
+            Caption = 'Account Name';
+            DataClassification = CustomerContent;
+        }
+
+        field(2; LastSuccessfulVerification; DateTime)
+        {
+            Caption = 'Time of last successful verification';
+            DataClassification = SystemMetadata;
+        }
+    }
+
+    keys
+    {
+        key(PrimaryKey; AccountName)
+        {
+            Clustered = false;
+        }
+    }
+}
\ No newline at end of file
diff --git a/src/System Application/App/AI/src/Azure OpenAI/AOAIAuthorization.Codeunit.al b/src/System Application/App/AI/src/Azure OpenAI/AOAIAuthorization.Codeunit.al
index 2e5ba3e42a..6e2950f938 100644
--- a/src/System Application/App/AI/src/Azure OpenAI/AOAIAuthorization.Codeunit.al	
+++ b/src/System Application/App/AI/src/Azure OpenAI/AOAIAuthorization.Codeunit.al	
@@ -6,6 +6,7 @@ namespace System.AI;
 
 using System;
 
+using System.Telemetry;
 /// <summary>
 /// Store the authorization information for the AOAI service.
 /// </summary>
@@ -14,8 +15,10 @@ codeunit 7767 "AOAI Authorization"
     Access = Internal;
     InherentEntitlements = X;
     InherentPermissions = X;
+    Permissions = tabledata "AOAI Account Verification Log" = RIMD;
 
     var
+        CopilotCapabilityImpl: Codeunit "Copilot Capability Impl";
         [NonDebuggable]
         Endpoint: Text;
         [NonDebuggable]
@@ -24,7 +27,18 @@ codeunit 7767 "AOAI Authorization"
         ApiKey: SecretText;
         [NonDebuggable]
         ManagedResourceDeployment: Text;
+        [NonDebuggable]
+        AOAIAccountName: Text;
         ResourceUtilization: Enum "AOAI Resource Utilization";
+        FirstPartyAuthorization: Boolean;
+        SelfManagedAuthorization: Boolean;
+        MicrosoftManagedAuthorizationWithDeployment: Boolean;
+        MicrosoftManagedAuthorizationWithAOAIAccount: Boolean;
+        TelemetryAOAIVerificationFailedTxt: Label 'Failed to authenticate account against Azure Open AI', Locked = true;
+        TelemetryAOAIVerificationSucceededTxt: Label 'Successfully authenticated account against Azure Open AI', Locked = true;
+        TelemetryAccessWithinCachePeriodTxt: Label 'Cached access to Azure Open AI was used', Locked = true;
+        TelemetryAccessTokenWithinGracePeriodTxt: Label 'Failed to authenticate against Azure Open AI but last successful authentication is within grace period. System still has access for %1', Locked = true;
+        TelemetryAccessTokenOutsideCachePeriodTxt: Label 'Failed to authenticate against Azure Open AI and last successful authentication is outside grace period. System no longer has access', Locked = true;
 
     [NonDebuggable]
     procedure IsConfigured(CallerModule: ModuleInfo): Boolean
@@ -32,18 +46,24 @@ codeunit 7767 "AOAI Authorization"
         AzureOpenAiImpl: Codeunit "Azure OpenAI Impl";
         CurrentModule: ModuleInfo;
         ALCopilotFunctions: DotNet ALCopilotFunctions;
+        AOAIAccountIsVerified: Boolean;
     begin
         NavApp.GetCurrentModuleInfo(CurrentModule);
 
         case ResourceUtilization of
             Enum::"AOAI Resource Utilization"::"First Party":
-                exit((ManagedResourceDeployment <> '') and ALCopilotFunctions.IsPlatformAuthorizationConfigured(CallerModule.Publisher(), CurrentModule.Publisher()));
+                exit(FirstPartyAuthorization and ALCopilotFunctions.IsPlatformAuthorizationConfigured(CallerModule.Publisher(), CurrentModule.Publisher()));
             Enum::"AOAI Resource Utilization"::"Self-Managed":
-                exit((Deployment <> '') and (Endpoint <> '') and (not ApiKey.IsEmpty()));
+                exit(SelfManagedAuthorization);
             Enum::"AOAI Resource Utilization"::"Microsoft Managed":
-                exit((Deployment <> '') and (Endpoint <> '') and (not ApiKey.IsEmpty()) and (ManagedResourceDeployment <> '') and AzureOpenAiImpl.IsTenantAllowlistedForFirstPartyCopilotCalls());
+                if MicrosoftManagedAuthorizationWithAOAIAccount then begin
+                    AOAIAccountIsVerified := VerifyAOAIAccount(AOAIAccountName, ApiKey);
+                    exit(AOAIAccountIsVerified and AzureOpenAiImpl.IsTenantAllowlistedForFirstPartyCopilotCalls());
+                end
+                else
+                    if MicrosoftManagedAuthorizationWithDeployment then
+                        exit(AzureOpenAiImpl.IsTenantAllowlistedForFirstPartyCopilotCalls());
         end;
-
         exit(false);
     end;
 
@@ -57,6 +77,19 @@ codeunit 7767 "AOAI Authorization"
         Deployment := NewDeployment;
         ApiKey := NewApiKey;
         ManagedResourceDeployment := NewManagedResourceDeployment;
+        MicrosoftManagedAuthorizationWithDeployment := true;
+    end;
+
+    [NonDebuggable]
+    procedure SetMicrosoftManagedAuthorization(NewAOAIAccountName: Text; NewApiKey: SecretText; NewManagedResourceDeployment: Text)
+    begin
+        ClearVariables();
+
+        ResourceUtilization := Enum::"AOAI Resource Utilization"::"Microsoft Managed";
+        AOAIAccountName := NewAOAIAccountName;
+        ApiKey := NewApiKey;
+        ManagedResourceDeployment := NewManagedResourceDeployment;
+        MicrosoftManagedAuthorizationWithAOAIAccount := true;
     end;
 
     [NonDebuggable]
@@ -68,6 +101,7 @@ codeunit 7767 "AOAI Authorization"
         Endpoint := NewEndpoint;
         Deployment := NewDeployment;
         ApiKey := NewApiKey;
+        SelfManagedAuthorization := true;
     end;
 
     [NonDebuggable]
@@ -77,6 +111,7 @@ codeunit 7767 "AOAI Authorization"
 
         ResourceUtilization := Enum::"AOAI Resource Utilization"::"First Party";
         ManagedResourceDeployment := NewDeployment;
+        FirstPartyAuthorization := true;
     end;
 
     [NonDebuggable]
@@ -113,7 +148,173 @@ codeunit 7767 "AOAI Authorization"
         Clear(Endpoint);
         Clear(ApiKey);
         Clear(Deployment);
+        Clear(AOAIAccountName);
         Clear(ManagedResourceDeployment);
         Clear(ResourceUtilization);
+        Clear(FirstPartyAuthorization);
+        clear(SelfManagedAuthorization);
+        Clear(MicrosoftManagedAuthorizationWithDeployment);
+        Clear(MicrosoftManagedAuthorizationWithAOAIAccount);
+    end;
+
+    [NonDebuggable]
+    local procedure PerformAOAIAccountVerification(AOAIAccountNameToVerify: Text; NewApiKey: SecretText): Boolean
+    var
+        HttpClient: HttpClient;
+        HttpRequestMessage: HttpRequestMessage;
+        HttpResponseMessage: HttpResponseMessage;
+        HttpContent: HttpContent;
+        ContentHeaders: HttpHeaders;
+        Url: Text;
+        IsSuccessful: Boolean;
+        UrlFormatTxt: Label 'https://%1.openai.azure.com/openai/models?api-version=2024-06-01', Locked = true;
+    begin
+        Url := StrSubstNo(UrlFormatTxt, AOAIAccountNameToVerify);
+
+        HttpContent.GetHeaders(ContentHeaders);
+        if ContentHeaders.Contains('Content-Type') then
+            ContentHeaders.Remove('Content-Type');
+        ContentHeaders.Add('Content-Type', 'application/json');
+        ContentHeaders.Add('api-key', NewApiKey);
+
+        HttpRequestMessage.Method := 'GET';
+        HttpRequestMessage.SetRequestUri(Url);
+        HttpRequestMessage.Content(HttpContent);
+
+        IsSuccessful := HttpClient.Send(HttpRequestMessage, HttpResponseMessage);
+
+        if not IsSuccessful or not HttpResponseMessage.IsSuccessStatusCode() then begin
+            Session.LogMessage('0000OLQ', TelemetryAOAIVerificationFailedTxt, Verbosity::Warning, DataClassification::SystemMetadata, TelemetryScope::ExtensionPublisher, 'Category', CopilotCapabilityImpl.GetAzureOpenAICategory());
+            exit(false);
+        end;
+
+        Session.LogMessage('0000OLR', TelemetryAOAIVerificationSucceededTxt, Verbosity::Normal, DataClassification::SystemMetadata, TelemetryScope::ExtensionPublisher, 'Category', CopilotCapabilityImpl.GetAzureOpenAICategory());
+        exit(true);
+    end;
+
+    local procedure VerifyAOAIAccount(AccountName: Text; NewApiKey: SecretText): Boolean
+    var
+        VerificationLog: Record "AOAI Account Verification Log";
+        AccountVerified: Boolean;
+        GracePeriod: Duration;
+        CachePeriod: Duration;
+        TruncatedAccountName: Text[100];
+        IsWithinCachePeriod: Boolean;
+        RemainingGracePeriod: Duration;
+        AuthFailedWithinGracePeriodLogMessageLbl: Label 'Azure Open AI authorization failed for account %1 on %2 because it is not authorized to access AI services. The connection will be terminated within %3 if not rectified', Comment = 'Telemetry message where %1 is the name of the Azure Open AI account name, %2 is the date where verification has taken place, and %3 is the remaining time until the grace period expires';
+        AuthFailedOutsideGracePeriodLogMessageLbl: Label 'Azure Open AI authorization failed for account %1 on %2 because it is not authorized to access AI services. The grace period has been exceeded and the connection has been terminated', Comment = 'Telemetry message where %1 is the name of the Azure Open AI account name and %2 is the date where verification has taken place';
+        AuthFailedWithinGracePeriodUserNotificationLbl: Label 'Azure Open AI authorization failed. AI functionality will be disabled within %1. Please contact your system administrator or the extension developer for assistance.', Comment = 'User notification explaining that AI functionality will be disabled soon, where %1 is the remaining time until the grace period expires';
+        AuthFailedOutsideGracePeriodUserNotificationLbl: Label 'Azure Open AI authorization failed and the AI functionality has been disabled. Please contact your system administrator or the extension developer for assistance.', Comment = 'User notification explaining that AI functionality has been disabled';
+
+    begin
+        GracePeriod := 14 * 24 * 60 * 60 * 1000; // 2 weeks in milliseconds
+        CachePeriod := 24 * 60 * 60 * 1000; // 1 day in milliseconds
+        TruncatedAccountName := CopyStr(DelChr(AccountName, '<>', ' '), 1, 100);
+
+        IsWithinCachePeriod := IsAccountVerifiedWithinPeriod(TruncatedAccountName, CachePeriod);
+        // Within CACHE period
+        if IsWithinCachePeriod then begin
+            Session.LogMessage('0000OLS', TelemetryAccessWithinCachePeriodTxt, Verbosity::Normal, DataClassification::SystemMetadata, TelemetryScope::ExtensionPublisher, 'Category', CopilotCapabilityImpl.GetAzureOpenAICategory());
+            exit(true);
+        end;
+
+        // Outside CACHE period
+        AccountVerified := PerformAOAIAccountVerification(AccountName, NewApiKey);
+
+        if not AccountVerified then begin
+            if VerificationLog.Get(TruncatedAccountName) then
+                RemainingGracePeriod := GracePeriod - (CurrentDateTime - VerificationLog.LastSuccessfulVerification)
+            else
+                RemainingGracePeriod := GracePeriod;
+
+            // Within GRACE period
+            if IsAccountVerifiedWithinPeriod(TruncatedAccountName, GracePeriod) then begin
+                ShowUserNotification(StrSubstNo(AuthFailedWithinGracePeriodUserNotificationLbl, FormatDurationAsDays(RemainingGracePeriod)));
+                LogTelemetry(AccountName, Today, StrSubstNo(AuthFailedWithinGracePeriodLogMessageLbl, AccountName, Today, FormatDurationAsDays(RemainingGracePeriod)));
+                Session.LogMessage('0000OLT', StrSubstNo(TelemetryAccessTokenWithinGracePeriodTxt, FormatDurationAsDays(RemainingGracePeriod)), Verbosity::Warning, DataClassification::SystemMetadata, TelemetryScope::ExtensionPublisher, 'Category', CopilotCapabilityImpl.GetAzureOpenAICategory());
+                exit(true);
+            end
+            // Outside GRACE period
+            else begin
+                ShowUserNotification(AuthFailedOutsideGracePeriodUserNotificationLbl);
+                LogTelemetry(AccountName, Today, AuthFailedOutsideGracePeriodLogMessageLbl);
+                Session.LogMessage('0000OLU', TelemetryAccessTokenOutsideCachePeriodTxt, Verbosity::Warning, DataClassification::SystemMetadata, TelemetryScope::ExtensionPublisher, 'Category', CopilotCapabilityImpl.GetAzureOpenAICategory());
+                exit(false);
+            end;
+        end;
+
+        SaveVerificationTime(TruncatedAccountName);
+        exit(true);
+    end;
+
+    local procedure IsAccountVerifiedWithinPeriod(AccountName: Text[100]; Period: Duration): Boolean
+    var
+        VerificationLog: Record "AOAI Account Verification Log";
+        IsVerified: Boolean;
+    begin
+        if VerificationLog.Get(AccountName) then begin
+            IsVerified := CurrentDateTime - VerificationLog.LastSuccessfulVerification <= Period;
+            exit(IsVerified);
+        end;
+
+        exit(false);
+    end;
+
+    local procedure SaveVerificationTime(AccountName: Text[100])
+    var
+        VerificationLog: Record "AOAI Account Verification Log";
+    begin
+        if VerificationLog.Get(AccountName) then begin
+            VerificationLog.LastSuccessfulVerification := CurrentDateTime;
+            VerificationLog.Modify();
+        end else begin
+            VerificationLog.Init();
+            VerificationLog.AccountName := AccountName;
+            VerificationLog.LastSuccessfulVerification := CurrentDateTime;
+            VerificationLog.Insert()
+        end;
+    end;
+
+    local procedure ShowUserNotification(Message: Text)
+    var
+        Notif: Notification;
+    begin
+        Notif.Message := Message;
+        Notif.Scope := NotificationScope::LocalScope;
+        Notif.Send();
+    end;
+
+    local procedure LogTelemetry(AccountName: Text; VerificationDate: Date; LogMessage: Text)
+    var
+        Telemetry: Codeunit Telemetry;
+        CustomDimensions: Dictionary of [Text, Text];
+    begin
+        CustomDimensions.Add('AccountName', AccountName);
+        CustomDimensions.Add('VerificationDate', Format(VerificationDate));
+
+        Telemetry.LogMessage(
+            '0000AA1', // Event ID
+            StrSubstNo(LogMessage, AccountName, VerificationDate),
+            Verbosity::Warning,
+            DataClassification::SystemMetadata,
+            Enum::"AL Telemetry Scope"::All,
+            CustomDimensions
+        );
+    end;
+
+    local procedure FormatDurationAsDays(DurationValue: Duration): Text
+    var
+        Days: Decimal;
+        DaysLabelLbl: Label '%1 days', Comment = 'Days in plural. %1 is the number of days';
+        DayLabelLbl: Label '1 day', Comment = 'A single day';
+    begin
+        Days := DurationValue / (24 * 60 * 60 * 1000);
+
+        if Days <= 1 then
+            exit(DayLabelLbl)
+        else
+            // Round up to the nearest whole day
+            Days := Round(Days, 1, '>');
+        exit(StrSubstNo(DaysLabelLbl, Format(Days, 0, 0)));
     end;
 }
\ No newline at end of file
diff --git a/src/System Application/App/AI/src/Azure OpenAI/AzureOpenAI.Codeunit.al b/src/System Application/App/AI/src/Azure OpenAI/AzureOpenAI.Codeunit.al
index 7992af7d3f..6a8bc4f1bf 100644
--- a/src/System Application/App/AI/src/Azure OpenAI/AzureOpenAI.Codeunit.al	
+++ b/src/System Application/App/AI/src/Azure OpenAI/AzureOpenAI.Codeunit.al	
@@ -100,11 +100,26 @@ codeunit 7771 "Azure OpenAI"
     /// Deployment would look like: gpt-35-turbo-16k
     /// </remarks>
     [NonDebuggable]
+    [Obsolete('Using Managed AI resources now requires different input parameters. Use the other overload for SetManagedResourceAuthorization instead.', '26.0')]
     procedure SetManagedResourceAuthorization(ModelType: Enum "AOAI Model Type"; Endpoint: Text; Deployment: Text; ApiKey: SecretText; ManagedResourceDeployment: Text)
     begin
         AzureOpenAIImpl.SetManagedResourceAuthorization(ModelType, Endpoint, Deployment, ApiKey, ManagedResourceDeployment);
     end;
 
+    /// <summary>
+    /// Sets the managed Azure OpenAI API authorization to use for a specific model type.
+    /// This will send the Azure OpenAI call to the deployment specified in <paramref name="ManagedResourceDeployment"/>, and will use the other parameters to verify that you have access to Azure OpenAI.
+    /// </summary>
+    /// <param name="ModelType">The model type to set authorization for.</param>
+    /// <param name="AOAIAccountName">Name of the Azure Open AI resource like "MyAzureOpenAIResource"</param>
+    /// <param name="ApiKey">The API key to access the Azure Open AI resource. This is used only for verification of access, not for actual Azure Open AI calls.</param>
+    /// <param name="ManagedResourceDeployment">The managed deployment to use for the model type.</param>
+    [NonDebuggable]
+    procedure SetManagedResourceAuthorization(ModelType: Enum "AOAI Model Type"; AOAIAccountName: Text; ApiKey: SecretText; ManagedResourceDeployment: Text)
+    begin
+        AzureOpenAIImpl.SetManagedResourceAuthorization(ModelType, AOAIAccountName, ApiKey, ManagedResourceDeployment);
+    end;
+
     /// <summary>
     /// Sets the Azure OpenAI API authorization to use for a specific model type and endpoint.
     /// </summary>
diff --git a/src/System Application/App/AI/src/Azure OpenAI/AzureOpenAIImpl.Codeunit.al b/src/System Application/App/AI/src/Azure OpenAI/AzureOpenAIImpl.Codeunit.al
index 932a32220b..6d43985055 100644
--- a/src/System Application/App/AI/src/Azure OpenAI/AzureOpenAIImpl.Codeunit.al	
+++ b/src/System Application/App/AI/src/Azure OpenAI/AzureOpenAIImpl.Codeunit.al	
@@ -207,6 +207,21 @@ codeunit 7772 "Azure OpenAI Impl"
         end;
     end;
 
+    [NonDebuggable]
+    procedure SetManagedResourceAuthorization(ModelType: Enum "AOAI Model Type"; AOAIAccountName: Text; ApiKey: SecretText; ManagedResourceDeployment: Text)
+    begin
+        case ModelType of
+            Enum::"AOAI Model Type"::"Text Completions":
+                TextCompletionsAOAIAuthorization.SetMicrosoftManagedAuthorization(AOAIAccountName, ApiKey, ManagedResourceDeployment);
+            Enum::"AOAI Model Type"::Embeddings:
+                EmbeddingsAOAIAuthorization.SetMicrosoftManagedAuthorization(AOAIAccountName, ApiKey, ManagedResourceDeployment);
+            Enum::"AOAI Model Type"::"Chat Completions":
+                ChatCompletionsAOAIAuthorization.SetMicrosoftManagedAuthorization(AOAIAccountName, ApiKey, ManagedResourceDeployment);
+            else
+                Error(InvalidModelTypeErr);
+        end;
+    end;
+
     [NonDebuggable]
     procedure GenerateTextCompletion(Prompt: SecretText; var AOAIOperationResponse: Codeunit "AOAI Operation Response"; CallerModuleInfo: ModuleInfo): Text
     var
@@ -757,5 +772,4 @@ codeunit 7772 "Azure OpenAI Impl"
         Session.LogMessage('0000MLE', TelemetryTenantAllowlistedMsg, Verbosity::Normal, DataClassification::SystemMetadata, TelemetryScope::ExtensionPublisher, 'Category', CopilotCapabilityImpl.GetAzureOpenAICategory());
         exit(true);
     end;
-
-}
\ No newline at end of file
+}