Microsoft AI-103 Valid Q&A - in .pdf

  • AI-103 pdf
  • Exam Code: AI-103
  • Exam Name: Developing AI Apps and Agents on Azure
  • Updated: Aug 08, 2026
  • Q & A: 159 Questions and Answers
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Microsoft AI-103 Exam Syllabus Topics:

SectionObjectives
Implement Computer Vision Solutions- OCR and document intelligence
- Image classification and object detection
Plan and Manage Azure AI Solutions- Model selection and lifecycle management
- Azure AI resource provisioning and configuration
- Responsible AI principles and governance
Develop Generative AI Applications and Agents- Azure OpenAI Service integration
  • 1. Function calling and tool use
    • 2. Prompt engineering and prompt flow design
      - AI agents architecture
      • 1. Agent orchestration and workflows
        • 2. Memory and state management
          Knowledge Mining and Information Retrieval- Indexing and semantic search
          - RAG (Retrieval Augmented Generation) patterns
          - Azure AI Search configuration
          Implement Natural Language Processing Solutions- Translation and multilingual support
          - Language understanding and intent recognition
          - Text analytics and summarization

          Microsoft Developing AI Apps and Agents on Azure Sample Questions:

          1. You have an invoice-processing application named App1 that uses Azure Constant Understanding in Foundry Tools.
          You are building a new Content Understanding pipeline named Pipeline1 that must meet the following requirements:
          - Compare an invoice to its related purchase order
          - Validate the voice against static vendor contact documents
          - Return a single structured output that includes discrepancy findings
          You need to configure Pipeline1 and expose the pipeline as a single analyzer endpoint. What should you configure?

          A) a single-file task in standard mode that uses the vendor contract provided as an additional document during analysis.
          B) a single-file task in standard mode that uses confidence scores enabled for the extracted fields.
          C) a multi-file task in standard mode that uses the invoice and purchase order as input to the analyzer
          D) a multiple-file task in pro mode that uses the vendor contract files as reference data


          2. You are building a web app named App1 that generates responses by using a model deployed to a Microsoft Foundry project named Project1.
          Before sending the prompts to the model, App1 must retrieve documents by using Azure AI Search.
          You need to integrate Project1 and App1. The solution must meet the following requirements:
          - Multiple client applications must use the same search configuration.
          - A security policy must prevent key-based authentication.
          - Administrative effort must be minimized.
          What should you do?

          A) Call Azure AI Search directly from each application by using Microsoft Entra authentication.
          B) Create a custom HTTP connection in Foundry and manually configure Azure AI Search endpoints per application.
          C) Configure an Azure AI Search connection in Project1 and reference the connection in each application.
          D) Enable a managed identity for each application and call Azure AI Search directly.


          3. Hotspot Question
          You are building a model to detect objects in images.
          The performance of the model based on training data is shown in the following exhibit.

          Use the drop-down menus to select the answer choice that completes each statement based on the information presented in the graphic.
          NOTE: Each correct selection is worth one point.


          4. Case Study 1 - Contoso, Ltd
          Overview
          Company Information
          Contoso, Ltd is a multinational retail company that builds, deploys, and manages generative AI and agent-based solutions by using Microsoft Foundry.
          Existing Environment
          Identity Environment
          Contoso uses Microsoft Entra ID for identity management, authentication, and authorization capabilities that enable agents to access organizational resources and services.
          Contoso recently formed a new AI engineering team named Agent1Dev Team to optimize and maintain existing AI solutions.
          The team collaborates with solution architects, DevOps engineers, and security engineers to design, implement. monitor, and secure AI applications.
          Contoso also has a team named Agent1Test Team that is responsible for validating AI solutions before the solution deployments.
          Generative Environment
          Contoso has a Microsoft Foundry deployment that contains two projects named Project1 and Project2.
          Project1
          Project1 contains a customer support agent named Agent1 that assists customers with product inquiries and troubleshooting requests.
          Agent1 has the following configurations:
          - Agent1 uses a base model deployment.
          - A safety evaluation pipeline is NOT enabled.
          - Tool invocation approval workflows are NOT enabled.
          - Conversation memory constraints are NOT configured.
          Agent1 interacts with customers by using digital support channels and answers general questions about Contoso products.
          Project1 is deployed to an Azure region located in the European Union (EU).
          Agent1Dev Team will use Project1 to optimize and maintain Agent1.
          Project2
          Project2 contains a deployed video generation model. The marketing department at Contoso has access to Project2 and plans to use the model to develop a video creation solution.
          Development of the solution is incomplete.
          Data Environment
          Contoso stores product-related information in Azure resources that support AI applications.
          The Azure environment contains an Azure Blob Storage account named storage1 that stores product detail sheets for all the Contoso products.
          The product sheets include specifications, feature descriptions, and product support information that Agent1 can use to answer customer questions. The product sheets are stored in the PDF format.
          Problem Statements
          Contoso identifies the following issues:
          - Agent1 has only general knowledge of the Contoso products.
          - A recent chat interaction with Agent1 was analyzed for sentiment. The results of the analysis have NOT been processed yet.
          - Agent1 does NOT use the detailed product information in the product sheets stored in storage1 when responding to customer questions.
          - The finance department at Contoso reports that vendor invoices must be reviewed manually to ensure that the invoices match the terms defined in the vendor contracts. The invoices contain tables, logos, and varied layouts that make the documents difficult to process consistently.
          Requirements
          Planned Changes
          Contoso plans to implement the following changes:
          - Implement a solution for Project1 that analyzes the vendor invoices by evaluating both the visual layout and the textual content of the invoices, so that the invoice details can be verified against the vendor contract terms.
          - Update the base model deployment used by Agent1 and standardize the model version to ensure continuity and consistent responses.
          - Enable Agent1 to retrieve and use the detailed product information from the product sheets stored in storage1.
          - Implement an indexing solution for the product sheets that Agent1 can use to answer customer questions.
          - Complete the development of the video creation solution.
          Technical Requirements
          Contoso identifies the following technical requirements:
          - The model deployment used by Agent1 must support scalable, high-throughput generative AI workloads and dynamically scale to handle variable customer support traffic, without requiring reserved throughput capacity.
          - The product sheets must be processed by using an indexing pipeline that enables semantic and vector search, so that Agent1 can retrieve the relevant product information.
          - Responses generated by using the product sheet information must be relevant, complete, and accurate.
          - Agent1 must be able to use the product sheets to answer natural language questions about product details.
          - The model version used by Agent1 must remain consistent to ensure stable responses.
          - The data processed by the model must remain within the EU.
          Security and Compliance Requirements
          Contoso identifies the following security and compliance requirements:
          - API keys must NOT be used to access Foundry-deployed models.
          - Access to the Azure resources must follow the principle of least privilege.
          - The developers at Contoso must authenticate to Microsoft Foundry resources by using Microsoft Entra authentication.
          - Access to Project1 must be assigned to the members of Agent1Dev Team by using a security group named SC_Agent1_Dev.
          - Access to Project1 must be assigned to the members of Agent1Test Team by using a security group named SC_Agent1_Test.
          - Agent1 must never reveal customer information, even if a document that contains customer data is added erroneously to the product sheet repository in storage1.
          - The product sheets might contain images that include embedded text. Agent1 must be protected from malicious instructions potentially hidden within the images.
          Business Requirements
          Contoso identifies the following business requirements:
          - Users that interact with Agent1 must have a personalized experience in future interactions, including the ability for Agent1 to retain conversation context and recall relevant information from previous interactions.
          - Agent1 must answer questions only about the products sold by Contoso.
          You need to recommend an invoice review solution that resolves the issue reported by the finance department. What should you include in the recommendation?

          A) Image Analysis
          B) Azure Document Intelligence in Foundry Tools
          C) Azure Content Understanding in Foundry Tools
          D) chat completions


          5. You have a chat app in a Microsoft Foundry project and an Azure AI Search vectorized index.
          You need to connect to the index to meet the following requirements:
          - Complex questions must retrieve information from multiple chunks.
          - Multi-turn conversations must influence retrieval planning.
          - Retrievals must run in parallel to reduce latency.
          Which retrieval approach should you use?

          A) iterative retrieval
          B) classic Retrieval Augmented Generation (RAG)
          C) chain of thought
          D) agentic Retrieval Augmented Generation (RAG)


          Solutions:

          Question # 1
          Answer: D
          Question # 2
          Answer: C
          Question # 3
          Answer: Only visible for members
          Question # 4
          Answer: B
          Question # 5
          Answer: D

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