diff --git a/x-pack/plugins/cloud_security_posture/public/components/fleet_extensions/policy_template_form.tsx b/x-pack/plugins/cloud_security_posture/public/components/fleet_extensions/policy_template_form.tsx
index 89ec1007f7d53..17474fd9cd233 100644
--- a/x-pack/plugins/cloud_security_posture/public/components/fleet_extensions/policy_template_form.tsx
+++ b/x-pack/plugins/cloud_security_posture/public/components/fleet_extensions/policy_template_form.tsx
@@ -442,7 +442,7 @@ const AzureAccountTypeSelect = ({
       updatePolicy(
         getPosturePolicy(newPolicy, input.type, {
           'azure.account_type': {
-            value: AZURE_SINGLE_ACCOUNT,
+            value: isAzureOrganizationDisabled ? AZURE_SINGLE_ACCOUNT : AZURE_ORGANIZATION_ACCOUNT,
             type: 'text',
           },
           'azure.credentials.type': {