Microsoft Developing AI Apps and Agents on Azure (AI-103)
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Vendor
Microsoft
Certification
AI & Data
Content
116 Qs
Status
Verified
Updated
5 hours ago
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Exam Overview
The Microsoft AI-103 certification, "Developing AI Apps and Agents on Azure," validates an individual's expertise in building, managing, and deploying AI solutions using Azure Cognitive Services, Azure Bot Service, and other AI-related services. Achieving this certification demonstrates a robust skill set in designing and implementing intelligent applications that can understand language, recognize patterns in images and video, make informed decisions, and engage in natural conversations. This credential significantly enhances a professional's marketability, showcasing their ability to leverage Microsoft's powerful AI platform to create innovative, scalable, and secure AI-driven experiences, positioning them as a valuable asset in the rapidly evolving field of artificial intelligence development.
Questions
40-60
Passing Score
700/1000
Duration
150 Minutes
Difficulty
Intermediate
Level
Associate
Skills Measured
Career Path
Target Roles
Common Questions
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Free Study Guide Samples
Previewing updated AI-103 bank (24 Questions).
You need to configure the model deployment for Agent1 to meet the technical requirements.
What should you configure? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Deployment type: Standard
The technical requirements state that the deployment must dynamically scale without requiring reserved throughput capacity. The Standard deployment type is a pay-as-you-go model that automatically scales to handle variable traffic, fulfilling this requirement. Furthermore, the requirement that all data must remain within the EU is met by a regional Standard deployment, as Project1 is deployed in an EU region. A Global Standard deployment would route traffic to other regions, violating data residency rules.
Version update policy: Opt out of automatic model version upgrades
The case study requires that the model version remains consistent to ensure stable and continuous responses. Selecting Opt out of automatic model version upgrades pins the deployment to the currently selected model version. This prevents unexpected changes in the agent's behavior and gives the Agent1Dev Team full control over when to update the model, aligning perfectly with the requirement to standardize the version for consistency.
Reference: https://learn.microsoft.com/en-us/azure/ai-services/openai/how-to/create-resource?pivots=web-portal#deploy-a-model
You need to configure Agent1 to meet the security and compliance requirements.
What should you use?
Correct Option: C
✅ Option C (Correct)
Reasoning: The primary security and compliance requirement states, "Agent1 must never reveal customer information, even if a document that contains customer data is added erroneously to the product sheet repository in storage1." Personally Identifiable Information (PII) Detection is specifically designed to identify and redact or block sensitive personal data from being revealed in an AI model's output, directly addressing this critical requirement. While other safety features are important, PII detection is the most direct and effective mechanism for safeguarding customer information in this context.
❌ Why the other choices are incorrect:
- Option A is incorrect: Self-harm content filtering focuses on detecting and mitigating content related to self-harm. It does not address the issue of preventing the revelation of customer information or malicious instructions.
- Option B is incorrect: Prompt shields (or jailbreak prevention) are primarily used to prevent an agent from being manipulated by malicious input prompts to perform unintended actions or reveal confidential information. While it can contribute to overall security, PII detection is a more direct control for preventing the output of sensitive customer data that might be present in retrieved documents.
- Option D is incorrect: Violence content filtering is designed to detect and filter content related to violence. This does not address the specific requirement of protecting customer information or malicious instructions embedded in images.
Reference: https://learn.microsoft.com/en-us/azure/ai-services/openai/concepts/content-filtering
You are planning a Microsoft Foundry project named Project1 that will contain multiple agents. Each agent will access the same Azure AI Search resource.
You need to recommend a solution to centrally manage the Azure AI Search credentials within Project1. The solution must be implemented across all the agents.
What should you recommend?
Correct Option: C
Adding a connection to the Azure AI Search resource within the 'Microsoft Foundry project' is the most effective solution for centrally managing credentials. In platforms like Azure AI Studio (which 'Microsoft Foundry project' is likely analogous to for AI-103 context), connections serve as project-level resources that encapsulate authentication details (such as API keys or managed identity configurations) for external services. This allows multiple agents within the project to reference a single, centrally managed connection, ensuring consistent and secure access without distributing credentials to individual agents. The connection handles the secure storage and retrieval of these credentials.
While enabling role-based access control (RBAC) is a best practice for secure access, it primarily manages authorization on the Azure AI Search resource itself, not the central management of the credentials within the project artifact that agents would use. A connection can leverage RBAC by using a managed identity. Disabling key-based access control would remove an authentication method but doesn't provide a central management solution. Creating a managed private endpoint enhances network security but does not address credential management.
Reference: https://learn.microsoft.com/en-us/azure/ai-studio/how-to/create-connections
Your company is piloting a customer support agent in a Microsoft Foundry project name Project1. Project1 is connected to an existing Application Insights resource, and the company’s support team reviews runs in the Traces tab.
The Foundry Agent Service is configured to perform the following actions:
- Retrieve the Application Insights connection string by calling project_client.telemetry.get_application_insights_connection_string().
- Call configure_azure_monitor(connection_string=...) to enable telemetry.
- A separate LangChain service is configured to use OpenTelemetry and has the following configurations:
- Uses AzureAIOpenTelemetryTracer(connection_string=..., enable_content_recording=False)
- Passes the tracer by using config={“callbacks”:[azure_tracer]}
Company policy has the following requirements:
- Telemetry from LangChain and OpenTelemetry must be distinguishable within the same Application Insights resource.
- Secrets and credentials must NOT be stored in prompts, tool arguments, or span attributes.
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.
Here are the correct answers for each statement based on Azure Monitor, OpenTelemetry, and LangChain integration principles:
The LangChain service will appear in Traces without configuring a tracer.
Answer: No
Reasoning: LangChain does not natively emit OpenTelemetry traces to Application Insights out-of-the-box. It requires either auto-instrumentation or explicit configuration of a tracer (like the AzureAIOpenTelemetryTracer passed via callbacks mentioned in your scenario) to capture and send spans to Azure Monitor.
Setting different OTEL_SERVICE_NAME values separates the services in Application Insights.
Answer: Yes
Reasoning: In OpenTelemetry, the OTEL_SERVICE_NAME environment variable defines the logical name of the service emitting the telemetry. Application Insights maps this value to the Cloud role name. By giving your Foundry Agent Service and your LangChain service different OTEL_SERVICE_NAME values, they will appear as distinct nodes in the Application Map and can be easily filtered in the Traces tab, satisfying the company policy.
When using enable_content_recording=False, prompts and tool data will be captured in the telemetry.
Answer: No
Reasoning: The enable_content_recording parameter specifically controls whether the payload data (the actual text of the user prompts, LLM completions, and tool inputs/outputs) is logged. Setting it to False disables this feature for privacy and security reasons, meaning only metadata (like latency, token counts, and status codes) will be captured, not the content itself.
You need to configure personalized user interactions for Agent1. The solution must meet the business requirements.
What should you include in the solution?
Correct Option: B
To enable personalized user interactions, including retaining conversation context and recalling past information, an AI agent requires 'memory'. Memory allows the agent to maintain state and context across multiple turns or sessions with a user. The case study explicitly states that Agent1's 'Conversation memory constraints are NOT configured', indicating a need to implement this for personalization. Knowledge provides external data, guardrails define behavioral boundaries, and tools extend capabilities, but only memory directly addresses context retention.
Reference: https://learn.microsoft.com/en-us/azure/ai-studio/concept-agents#agent-memory (and general AI agent architecture principles)
You have a Microsoft Foundry project that processes procurement documents submitted by suppliers.
You need to implement two pipelines by using Azure Content Understanding in Foundry Tools. The solution must meet the following requirements:
Include a pipeline named Pipeline1 that supports cost-effective, high-volume processing of standalone PDF invoices.
Include a pipeline named Pipeline2 that supports cross-document validation by using multi-step reasoning and reference data.
How should you configure each pipeline? To answer, drag the appropriate configurations to the correct pipelines. Each configuration may be used once, more than once, of not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
The provided solution correctly maps the configurations to the pipeline requirements. Assuming the draggable options are labeled A, B, C, D from top to bottom:
✅ Step 1: Pipeline1 matches with -> Single-file task in standard mode
Reasoning: The requirement is to process 'standalone PDF invoices', indicating that each document is handled independently. This directly corresponds to a 'Single-file task'. The 'cost-effective' requirement points to using the 'standard mode', which is typically the base-level, lower-cost processing option.
✅ Step 2: Pipeline2 matches with -> Multi-file task in pro mode
Reasoning: This pipeline needs to perform 'cross-document validation', which inherently requires processing multiple files together, making a 'Multi-file task' necessary. The need for 'multi-step reasoning and reference data' signifies a complex workflow that aligns with the advanced capabilities of a 'pro mode'.
Reference: https://learn.microsoft.com/en-us/azure/ai-services/document-intelligence/concept-custom?view=doc-intel-4.0.0
You need to ensure that Agent1Dev Team can access Agent1. The solution must meet the security and compliance requirements.
How should you complete the Python code? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Box 1: DefaultAzureCredential()
The security requirements state that developers must authenticate using Microsoft Entra authentication and that API keys must NOT be used. `DefaultAzureCredential` from the `azure.identity` library is the standard mechanism for authenticating with Microsoft Entra ID in Azure SDKs. It automatically tries several credential types (e.g., environment variables, managed identity, Azure CLI) that rely on Entra ID tokens, which aligns perfectly with the requirements.
Box 2: get
The objective of the code is to access and retrieve the existing agent named `Agent1`. The `get` method of the `project_client.agents` object is used to fetch an existing agent by its name. The subsequent print statement, which accesses `agent.name`, confirms that the code's intent is to retrieve the agent object, not create a new version or get a specific version.
You have a Python application named App1 that integrates with a Microsoft Foundry project named Project1.
You need to ensure that App1 meets the following requirements:
Authenticates by using a Microsoft Entra managed identity
Sends prompts to a deployed model by using the Azure OpenAI Responses API
How should you complete the Python code? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Box 1: DefaultAzureCredential
The application is required to authenticate using a Microsoft Entra managed identity. The DefaultAzureCredential class from the azure.identity library is the recommended approach for most applications that run on Azure. It automatically chains together multiple credential types, including managed identity, which simplifies authentication across different development and deployment environments.
Box 2: create
To send a prompt to a deployed model and receive a response, the application needs to call the method that generates a completion. In the context of the Azure OpenAI SDK and related client libraries, the create method is used to initiate this action. It sends the request with the specified model and input prompt to the service endpoint.
Reference: https://learn.microsoft.com/en-us/python/api/azure-identity/azure.identity.defaultazurecredential?view=azure-python
You have a Microsoft Foundry project that contains a Retrieval Augmented Generation (RAG) chat solution used by customer support agents.
You are adding an automated pre-production evaluation step to a CI/CD pipeline named Pipeline1. The evaluation will run against a labeled test dataset that contains support questions and the expected grounding context.
You need to ensure that Pipeline1 fails if unsupported content or a retrieval mismatch exceeds a defined threshold:
• responses include claims not supported by the retrieved source content
• retrieved source content does not align with the labeled expected context
Which two built-in evaluators should you use in Pipeline1? Each correct answer presents pat of the solution.
NOTE: Each correct selection is worth one point.
Correct Option: A,D
✅ Option A (Correct)
Reasoning: The Retrieval evaluator assesses the relevance and alignment of the retrieved source content with the expected context. This directly addresses the requirement for detecting when 'retrieved source content does not align with the labeled expected context', ensuring the RAG system fetches accurate information.
✅ Option D (Correct)
Reasoning: The Groundedness evaluator determines if the model's response is supported by the provided source content. This directly addresses the condition where 'responses include claims not supported by the retrieved source content', preventing hallucinations and ensuring factual accuracy.
❌ Why the other choices are incorrect:
- Option B is incorrect: Fluency evaluates grammatical correctness and natural language, not content accuracy or source alignment.
- Option C is incorrect: Coherence assesses logical consistency and structure of the response, not whether claims are supported or retrieval is accurate.
- Option E is incorrect: Response Completeness checks if the response fully answers the query, not its factual basis or alignment with retrieved sources.
Reference: https://learn.microsoft.com/en-us/azure/ai-studio/how-to/evaluate-generative-ai-models-metrics
You have a Microsoft Foundry project that contains a workflow for a customer support triage process.
You have an Ask a question node that stores user responses in a local variable named Var01.
You need to create the following Power Fx expressions:
An if/else condition expression that ensures that Var01 contains a value
A Send message expression that returns the stored user response in uppercase
How should you configure the expressions? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
If/else condition expression:
✅ Not(IsBlank(Local.Var01))
Reasoning: This Power Fx expression is used to verify that the local variable Local.Var01 is not empty. The IsBlank function returns true if the variable is blank (null or an empty string). By using the Not function, the condition is inverted, making the expression evaluate to true only when Local.Var01 contains a value.
Send message expression:
✅ {Upper(Local.Var01)}
Reasoning: This expression correctly returns the user's response in uppercase. The Upper function in Power Fx converts all characters in a given text string to uppercase. The expression references the local variable Local.Var01 and applies this transformation. The curly braces {} are used to embed and evaluate the Power Fx formula within the message text.
Reference: https://learn.microsoft.com/en-us/microsoft-copilot-studio/authoring-formulas
You have a Microsoft Foundry project that contains a support-ticket triage agent built by using the Foundry Agent Service.
The agent uses tool to classify the ticket type and sot the ticket priority.
Sometimes, the same support case continues across multiple sessions over several days.
You need to persist state by using a durable ID to ensure that the agent can automatically reuse the full interaction history. The solution must preserve previous user messages, tool calls and tool outputs across turns and sessions.
Which runtime component should you use?
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You have a Microsoft Foundry project that contains a customer support agent built by using the Foundry Agent Service.
The agent uploads user-provided screenshots to Azure Storage through a ticketing tool and receives a blob URL for additional reasoning.
You need to use image moderation during agent runs and prevent harmful content from being returned during runs. Azure AI Content Safety must access the images by using the blob URL. The solution must follow the principle of least privilege.
What should you configure for Content Safety? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
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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.
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You have a Microsoft Foundry project that contains three agents as shown in the following table.
You need to orchestrate the agents to ensure that the customer requests meet the following requirements:
Support a deterministic, step-based process that uses conditional branching and shared state across the agents.
Optionally trigger a ticket action based on the triage result.
The solution must minimize development effort.
What should you include in the solution?
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You plan to configure an evaluation in Microsoft Foundry for a Retrieval Augmented Generation (RAG) chat app.
You need to provide scores for groundedness, relevance, and harmful content categories.
Which two evaluation categories can you use? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
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You have a Microsoft Foundry project that contains an agent. The agent uses Azure Speech in Foundry Tools.
You fine-tune a baseline speech to text model for the en-us locale and publish the model.
The agent calls the Speech to text REST API and returns an error message indicating that the project ID is invalid.
You need to set the project property to the correct ID.
To what should you set the project property?
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You have a Microsoft Foundry project that contains an agent. The agent uses two tools to perform the following actions:
• Use Azure AI Search to retrieve answers from a private product documentation index.
• Use the web search tool to retrieve public information on the internet.
You need to ensure that for a specific run, the agent deterministically retrieves information only from the internet.
To what should you set tool_choice?
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You have a Microsoft Foundry project that contains an agent named PaymentAgent.
PaymentAgent includes a function tool that issues customer refunds by using an external API.
You are creating a workflow in YAML.
You need to ensure that the workflow pauses for human approval and continues with the refund step only after approval is granted.
How should you complete the workflow definition? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
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You have a Microsoft Foundry project that contains a customer support agent built on a deployed chat model.
The agent responses are validated by using an automated testing system that compares generated answers to stored expected outputs. Identical prompts must return consistent response to prevent automated test failures.
You need to reduce response variability, without modifying the prompt or reducing factual accuracy.
What should you do for the model?
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You have an Azure Speech in Foundry Tools resource that hosts a custom speech to text model deployed to a custom endpoint. An agent uses the endpoint to perform real-time speech recognition.
You are approaching the expiration date of the custom speech to text model.
What is the expected behavior when the model expires?
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You are developing prompts for a Micosoft Foundry project that classifies incoming support tickets by category.
You need to improve accuracy by showing the model how correct classifications look, without retaining the model or storing knowledge permanently.
Which prompt engineering approach should you use?
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You have a Microsoft Foundry project that contains a model deployment.
You have an application that calls the deployment by using the Azure OpenAI v1 API and DefaultAzureCredential.
The developers at your company receive HTTP 403 errors when they send inference requests, even after running az login.
You need to ensure that the developers can perform model inference. The solution must follow the principle of least privilege.
Which role-based access control (RBAC) role should you assign to the developers?
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You have a Microsoft Foundry project that contains an agent for a customer support chat app. The agent uses a memory store and a memory search tool.
You need to ensure that the conversation history does NOT persist across separate sessions.
To what should you set the scope of the memory tool?
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You have a Microsoft Foundry project that contains an agent. The agent has a Model Context Protocol (MCP) tool that queries a knowledge base stored in Azure AI Search.
Some agent runs return answers from the base model without invoking the knowledge base, which results in responses without grounded citations.
You are provided with the following code snippet that runs the agent.
You need to add the correct tool _choice parameter to the code to deterministically force the agent to invoke the MCP tool on each run.
What should you add?
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