When authenticating to Azure with a service principal, I set the required environment variables as stated in the docs, however I get this error when I run

pulumi up

at the stage of creating an AAD application in my pulumi code.

error: graphrbac.ApplicationsClient#Create: Failure responding to request: StatusCode=403 -- Original Error: autorest/azure: Service returned an error. Status=403 Code="Unknown" Message="Unknown service error" Details=[{"odata.error":{"code":"Authorization_RequestDenied","date":"2019-12-23T18:15:51","message":{"lang":"en","value":"Insufficient privileges to complete the operation."},"requestId":""}}]

Please, is there any additional permission I need to give the service principal in active directory?