diff --git a/hack/util.sh b/hack/util.sh
index d489ab2a805..6772ab0bce9 100755
--- a/hack/util.sh
+++ b/hack/util.sh
@@ -42,12 +42,18 @@ capz::util::should_build_kubernetes() {
 }
 
 capz::util::should_build_ccm() {
+    # TEST_CCM is an environment variable set by a prow job to indicate that the CCM should be built and tested.
     if [[ -n "${TEST_CCM:-}" ]]; then
         echo "true" && return
     fi
+    # If conformance is being tested with CI artifacts, CCM should be built.
     if [[ "${E2E_ARGS:-}" == "-kubetest.use-ci-artifacts" ]]; then
         echo "true" && return
     fi
+    # If the Kubernetes version contains "latest", CCM should be built.
+    if [[ "${KUBERNETES_VERSION:-}" =~ "latest" ]]; then
+        echo "true" && return
+    fi
     echo "false"
 }
 
diff --git a/scripts/ci-entrypoint.sh b/scripts/ci-entrypoint.sh
index 0d29d0b3553..061a8945e5d 100755
--- a/scripts/ci-entrypoint.sh
+++ b/scripts/ci-entrypoint.sh
@@ -50,7 +50,7 @@ setup() {
     # setup REGISTRY for custom images.
     : "${REGISTRY:?Environment variable empty or not defined.}"
     "${REPO_ROOT}/hack/ensure-acr-login.sh"
-    if [[ -n "${TEST_CCM:-}" ]]; then
+    if [[ "$(capz::util::should_build_ccm)" == "true" ]]; then
         # shellcheck source=scripts/ci-build-azure-ccm.sh
         source "${REPO_ROOT}/scripts/ci-build-azure-ccm.sh"
         echo "Will use the ${IMAGE_REGISTRY}/${CCM_IMAGE_NAME}:${IMAGE_TAG} cloud-controller-manager image for external cloud-provider-cluster"