Unable to choose an Azure-based integration runtime when creating a pipeline activity in Azure Data

I have created a self hosted and an azure based IR but when setting up or editing a pipeline activity, the azure based IR option is shown to be unavailable.

When creating pipeline activity, the azure based IR is greyed out like so in the screenshot

I want to switch to cloud based IR over self hosted IR in order to run scheduled pipelines even when my self hosted IR is not running.

Why am I not able to choose cloud based IR for a pipeline activity? Does this mean I do not have permissions to setup a cloud based IR? If yes, what role is specifically needed for it?