diff --git a/awx/ui/client/src/inventories/manage/groups/groups-add.controller.js b/awx/ui/client/src/inventories/manage/groups/groups-add.controller.js
index 7cc1920daf..179f460d91 100644
--- a/awx/ui/client/src/inventories/manage/groups/groups-add.controller.js
+++ b/awx/ui/client/src/inventories/manage/groups/groups-add.controller.js
@@ -118,7 +118,7 @@
             $scope.group_by_choices = source === 'ec2' ? $scope.ec2_group_by : null;
             // azure_rm regions choices are keyed as "azure" in an OPTIONS request to the inventory_sources endpoint
             $scope.source_region_choices = source === 'azure_rm' ? $scope.azure_regions : $scope[source + '_regions'];
-            $scope.cloudCredentialRequired = source !== 'manual' && source !== 'custom' ? true : false;
+            $scope.cloudCredentialRequired = source !== '' && source !== 'custom' ? true : false;
             $scope.group_by = null;
             $scope.source_regions = null;
             $scope.credential = null;
diff --git a/awx/ui/client/src/inventories/manage/groups/groups-edit.controller.js b/awx/ui/client/src/inventories/manage/groups/groups-edit.controller.js
index 266eef430a..e7f7b67db3 100644
--- a/awx/ui/client/src/inventories/manage/groups/groups-edit.controller.js
+++ b/awx/ui/client/src/inventories/manage/groups/groups-edit.controller.js
@@ -117,7 +117,7 @@
             // reset fields
             // azure_rm regions choices are keyed as "azure" in an OPTIONS request to the inventory_sources endpoint
             $scope.source_region_choices = source.value === 'azure_rm' ? $scope.azure_regions : $scope[source.value + '_regions'];
-            $scope.cloudCredentialRequired = source.value !== 'manual' && source.value !== 'custom' ? true : false;
+            $scope.cloudCredentialRequired = source.value !== '' && source.value !== 'custom' ? true : false;
             $scope.group_by = null;
             $scope.source_regions = null;
             $scope.credential = null;