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Microsoft AI-103 exam : Developing AI Apps and Agents on Azure

AI-103 Exam Questions
  • Exam Code: AI-103
  • Exam Name: Developing AI Apps and Agents on Azure
  • Updated: Aug 02, 2026
  • Q & A: 159 Questions and Answers
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Microsoft AI-103 Exam Syllabus Topics:

SectionWeightObjectives
Implement computer vision solutions10-15%- Analyze visual content
  • 1. Process images and video
  • 2. Implement OCR and visual understanding
  • 3. Use multimodal vision APIs
Implement text analysis and information extraction solutions10-15%- Analyze and extract information
  • 1. Extract entities and structured data
  • 2. Use document intelligence services
  • 3. Implement natural language processing
Plan and manage Azure AI solutions25-30%- Manage AI solution lifecycle
  • 1. Monitor model and application performance
  • 2. Implement CI/CD for AI applications
  • 3. Apply responsible AI practices
- Plan Azure AI resources
  • 1. Manage deployments and monitoring
  • 2. Select Azure AI services and Foundry resources
  • 3. Configure authentication and security
Implement agentic solutions20-25%- Build AI agents
  • 1. Integrate tools and external knowledge
  • 2. Create autonomous and multi-agent workflows
  • 3. Configure memory and orchestration
- Manage agent operations
  • 1. Secure agent interactions
  • 2. Implement scalable deployments
  • 3. Monitor and debug agents
Implement generative AI solutions25-30%- Optimize and evaluate models
  • 1. Configure content filters and safety
  • 2. Evaluate responses and grounding
  • 3. Implement multimodal AI capabilities
- Develop generative AI applications
  • 1. Build retrieval-augmented generation solutions
  • 2. Implement prompt engineering
  • 3. Use Azure OpenAI and Foundry models

Microsoft Developing AI Apps and Agents on Azure Sample Questions:

1. Hotspot Question
You have a Microsoft Founcy project that contains a Retrieval Augmented Generation (RAG) solution.
You need to run a pre-production evaluation by using labeled CSV dataset that contains the query, context, response and ground truth. The evaluation must measure the following:
- Whether responses address the user query
- Whether responses are supported by the provided context
- Whether responses contain sensitive or proprietary information
Which AI quality evaluation metrics should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.


2. You have an Azure subscription that contains an Azure OpenAI resource.
You plan to build an agent by using the Azure AI Agent Service. The agent will perform the following actions:
- Interpret written and spoken questions from users.
- Generate answers to the questions.
- Output the answers as speech.
You need to create the project for the agent.
What should you use?

A) the Azure portal
B) Language Studio
C) Azure AI Foundry
D) Speech Studio


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


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 a solution to assess the responses generated by Agent1 when the agent uses the product information stored in storage1. The solution must meet the technical requirements. What should you include in the recommendation?

A) a custom guardrail
B) a Retrieval Augmented Generation (RAG) evaluator
C) model fine-tuning
D) a groundedness evaluator


5. You are building a voice agent for a pharmacy. It must accept spoken questions, reply with synthesised speech, and accurately recognise specialised medicine names that a general speech model often mishears. Which capability should you configure?

A) Azure AI Document Intelligence on the audio stream
B) Only the default text-to-speech voice
C) Azure Translator to convert the audio
D) A custom speech model for speech-to-text within the agent


Solutions:

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

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