We will be creating users in our directory and assigning roles to them.
Attaching service roles to AAD users
Creating users in your Active Directory
Select Azure Active Directory->Users and select New user. As shown in the following screenshot:
Do not select New guest user. Guest users cannot be assigned roles.
The username has to be in the domain that you are the admin of. In this case, an Outlook account was used and hence the domain name is handsonaksoutlook.onmicrosoft.com. Write down the password.
Creating a read-only group and adding the user to it
To demonstrate...