tool_user_error: Error: sharepoint_tool_user_error; Authorization Failed - user does not have a valid license

Hi Mohammed Anshif,
The "Authorization Failed - User does not have valid license" error in Azure AI Foundry when connecting to SharePoint usually occurs because the identity being used by the SharePoint tool whether it is a user account, managed identity, or service principal—does not have a valid SharePoint Online license or lacks the necessary Microsoft Graph API permissions, such as Sites.Read.All, with admin consent. Even if your personal account or Azure subscriptions have valid licenses, the connection specifically depends on the identity configured for the tool. To resolve this, first identify which authentication method the AI Foundry tool is using. If it is a user account, verify that a SharePoint Online license is assigned in the Microsoft 365 admin center.

If it is a managed identity or service principal, note that licenses cannot be assigned to these identities, so consider using a dedicated licensed user account instead. Additionally, grant the required Microsoft Graph API permissions and ensure an administrator provides tenant-wide consent. Confirm that the identity has at least read access to the SharePoint site, and then reconnect the SharePoint tool in Azure AI Foundry to refresh authentication. Properly aligning the identity, license, permissions, and access should resolve this authorization error.

For more information: Use the Microsoft SharePoint tool (preview)
How to use the SharePoint tool

Hi Mohammed Anshif,
Did you get any chance to check the response. Thank you!

I have the same issue. I have a G5 license assigned to my account. Another developer is able to use the Knowledge tool without any issues.

tool_user_error: Error: sharepoint_tool_user_error; Authorization Failed - User does not have valid license RunId: run_XFZKvG4kaPvh0ElA7XDitWGA

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Error failed:
{"name":"tool_calls","context":{"trace_id":"thread_2C8GCScqwmEPE0jXfcMqCkDm","span_id":"step_6u0buaQB2Mb0OnSuTm9KGp04","thread_id":"thread_2C8GCScqwmEPE0jXfcMqCkDm"},"kind":"RunStep","parent_id":"run_XFZKvG4kaPvh0ElA7XDitWGA","start_time":"2025-08-04T15:25:21.000Z","end_time":"undefined","status":{"status_code":"Error","description":"failed"},"attributes":{"span_type":"RunStep","gen_ai.usage.total_tokens":"908","gen_ai.usage.input_tokens":"892","gen_ai.usage.output_tokens":"16"}}

sharepoint_grounding
{"name":"sharepoint_grounding","context":{"trace_id":"thread_2C8GCScqwmEPE0jXfcMqCkDm","span_id":"call_toyxgT0VYVi19wfHzTPxXGjH","thread_id":"thread_2C8GCScqwmEPE0jXfcMqCkDm"},"kind":"Tool","parent_id":"step_6u0buaQB2Mb0OnSuTm9KGp04","start_time":"2025-08-04T15:25:21.000Z","end_time":"undefined","status":{"status_code":"Error","description":"failed"},"attributes":{"span_type":"Tool","id":"call_toyxgT0VYVi19wfHzTPxXGjH","type":"sharepoint_grounding","sharepoint_grounding":{"input":"search("password management standard")","output":"[redacted]"},"output":""}}

Hi Mohammed Anshif,
Did you get any chance to check the response. Thank you!