diff --git a/internal/backend/remote-state/azure/backend.go b/internal/backend/remote-state/azure/backend.go
index 0398477e4a..f21b0ba4e2 100644
--- a/internal/backend/remote-state/azure/backend.go
+++ b/internal/backend/remote-state/azure/backend.go
@@ -145,13 +145,13 @@ func New() backend.Backend {
 			"oidc_token": {
 				Type:        schema.TypeString,
 				Optional:    true,
-				DefaultFunc: schema.EnvDefaultFunc("ARM_OIDC_TOKEN", false),
+				DefaultFunc: schema.EnvDefaultFunc("ARM_OIDC_TOKEN", ""),
 				Description: "A generic JWT token that can be used for OIDC authentication. Should not be used in conjunction with `oidc_request_token`.",
 			},
 			"oidc_token_file_path": {
 				Type:        schema.TypeString,
 				Optional:    true,
-				DefaultFunc: schema.EnvDefaultFunc("ARM_OIDC_TOKEN_FILE_PATH", false),
+				DefaultFunc: schema.EnvDefaultFunc("ARM_OIDC_TOKEN_FILE_PATH", ""),
 				Description: "Path to file containing a generic JWT token that can be used for OIDC authentication. Should not be used in conjunction with `oidc_request_token`.",
 			},
 			"oidc_request_url": {