Hi Edwin,
Thank you for posting your query. You are absolutely right, when you use Azure AD, you can simplify your identity management. Azure AD takes care of your users and authentication. Your application can focus on the business logic, without worrying the usermanagement.
When you have many applications in an organization, integrating the application with Azure AD simplifies the user experience, as the users will be able able to access various applications using their Azure AD account.
The following guide will help you how to set up Azure AD sign in to a web application.
https://learn.microsoft.com/en-us/azure/active-directory/develop/web-app-quickstart?pivots=devlang-aspnet-core
https://learn.microsoft.com/en-us/azure/active-directory/develop/scenario-web-app-sign-user-overview?tabs=aspnetcore&view=aspnetcore-6.0
To Answer your query, "Is that possible", - Yes it is possible and is already available for you. Refer the quick start guides and start building.