Azure AD introduces a lot of simplicity to working the directory, so much so that creating users and groups in Azure AD is easier than creating them on-prem.
When adding a new user in Azure AD we are given a few ways to do this. You can create the user through the traditional process, you can invite an user from another AD to participate in your AD, or you can add/invite users in bulk. And of course, all of this can be done through PowerShell.
Open the Cloud Shell terminal from the Azure Portal. To work with Azure AD from PowerShell we need to run
Once connected to Azure AD we must create a password profile object to avoid passing passwords through plaintext. We can do this by creating a variable that instantiates the password profile object
$pwprofile = New-Object -Type Microsoft.Open.AzureAD.Model.PasswordProfile
We then need to store the temporary password in this variable
$pwprofile.password = "hunter2"
Now that the pwprofile variable has the password object we can create the new user
New-AzureADUser -AccountEnabled $true -PasswordProfile $pwprofile -DisplayName "PSEUser" -UserPrincipalName "PSEUser@powershellengineering.com" -MailNickName "PSEUser"
And there you have it, new Azure AD user.