Yes. Accounts will be created on-the-fly upon authentication, if they do not exist yet.
However, you still need to define permissions for each user. You can set permissions in bulk when inviting users, in the team setting page of your Algolia Dashboard. All users need to be invited explicitly to the required Algolia Applications. If a user has access to Algolia via the auth provider but wasn't invited via the Algolia dashboard, they will be able to login but won't be able to access the applications. They will only see their personal applications.