diff --git a/azure/services/aksextensions/spec.go b/azure/services/aksextensions/spec.go
index a9ef1feed56..7414820d9bc 100644
--- a/azure/services/aksextensions/spec.go
+++ b/azure/services/aksextensions/spec.go
@@ -78,12 +78,12 @@ func (s *AKSExtensionSpec) Parameters(ctx context.Context, existingAKSExtension
 	}
 	if s.ExtensionIdentity != "" {
 		aksExtension.Spec.Identity = &asokubernetesconfigurationv1.Identity{
-			Type: (*asokubernetesconfigurationv1.Identity_Type)(&s.ExtensionIdentity),
+			Type: (*asokubernetesconfigurationv1.Identity_Type)(ptr.To(s.ExtensionIdentity)),
 		}
 	}
 	if s.AKSAssignedIdentityType != "" {
 		aksExtension.Spec.AksAssignedIdentity = &asokubernetesconfigurationv1.Extension_Properties_AksAssignedIdentity_Spec{
-			Type: (*asokubernetesconfigurationv1.Extension_Properties_AksAssignedIdentity_Type_Spec)(&s.AKSAssignedIdentityType),
+			Type: (*asokubernetesconfigurationv1.Extension_Properties_AksAssignedIdentity_Type_Spec)(ptr.To(s.AKSAssignedIdentityType)),
 		}
 	}
 	if s.Scope.ScopeType == infrav1.ExtensionScopeCluster {
diff --git a/test/e2e/aks_marketplace.go b/test/e2e/aks_marketplace.go
index 6e589862223..53e3f94cb53 100644
--- a/test/e2e/aks_marketplace.go
+++ b/test/e2e/aks_marketplace.go
@@ -137,9 +137,8 @@ func AKSMarketplaceExtensionSpec(ctx context.Context, inputGetter func() AKSMark
 		g.Expect(err).NotTo(HaveOccurred())
 		infraControlPlane.Spec.MarketplaceExtensions = []infrav1.MarketplaceExtension{
 			{
-				Name:                    extensionName,
-				ExtensionType:           ptr.To("TraefikLabs.TraefikProxy"),
-				AKSAssignedIdentityType: infrav1.AKSAssignedIdentitySystemAssigned,
+				Name:          extensionName,
+				ExtensionType: ptr.To("TraefikLabs.TraefikProxy"),
 				Plan: &infrav1.MarketplacePlan{
 					Name:      "traefik-proxy",
 					Product:   "traefik-proxy",
@@ -165,8 +164,6 @@ func AKSMarketplaceExtensionSpec(ctx context.Context, inputGetter func() AKSMark
 		extension := resp.Extension
 		g.Expect(extension.Properties).NotTo(BeNil())
 		g.Expect(extension.Name).To(Equal(ptr.To(extensionName)))
-		g.Expect(extension.Properties.AksAssignedIdentity).NotTo(BeNil())
-		g.Expect(extension.Properties.AksAssignedIdentity.Type).To(Equal(ptr.To(armkubernetesconfiguration.AKSIdentityTypeSystemAssigned)))
 		g.Expect(extension.Properties.AutoUpgradeMinorVersion).To(Equal(ptr.To(true)))
 		g.Expect(extension.Properties.ExtensionType).To(Equal(ptr.To("TraefikLabs.TraefikProxy")))
 	}, input.WaitIntervals...).Should(Succeed())