Using the Pulumi-Azure open source package, users can create Azure Kubernetes Service (AKS) clusters with integrated Active Directory (AD) service principals, enabling seamless authentication and authorization. The package simplifies the process of enabling monitoring and logging for core AKS components using Pulumi SDKs, demonstrated through a step-by-step example. The setup involves installing the Pulumi CLI, setting up Azure credentials, and initializing a project using the azure-typescript template. Key steps include exporting configurations for the AKS stack, creating an AD service principal, establishing the AKS cluster, and enabling default monitoring and logging settings. Users can verify the cluster's creation through the Pulumi CLI, the Pulumi Service Console, and the Azure portal, with additional resources available on GitHub for further exploration of Pulumi's integration with Azure DevOps.