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

Exam Code: AI-103

Exam Name: Developing AI Apps and Agents on Azure

Updated: Aug 03, 2026

Q & A: 159 Questions and Answers

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Microsoft AI-103 Exam Syllabus Topics:

SectionWeightObjectives
Implement information extraction and knowledge mining10–15%- Build knowledge bases and search solutions
  • 1. Design knowledge mining pipelines
  • 2. Implement Azure AI Search
  • 3. Create and manage vector indexes
- Extract structured data from documents
  • 1. Use Azure AI Document Intelligence
  • 2. Process forms, invoices, and unstructured content
Implement computer vision solutions10–15%- Build multimodal solutions
  • 1. Combine vision and language capabilities
  • 2. Process and analyze video content
- Implement image analysis and processing
  • 1. Implement object detection and image classification
  • 2. Use Azure AI Vision services
  • 3. Extract text and structure from images
Implement text and speech analysis solutions10–15%- Implement natural language processing
  • 1. Use Azure AI Language services
  • 2. Perform sentiment analysis, entity recognition, and summarization
  • 3. Build conversational language understanding
- Implement speech capabilities
  • 1. Speech translation and speaker recognition
  • 2. Speech-to-text and text-to-speech integration
Plan and manage Azure AI solutions25–30%- Manage AI solution development lifecycle
  • 1. Configure model and agent deployments
  • 2. Monitor and maintain AI workloads
  • 3. Integrate with CI/CD pipelines
- Design Azure AI infrastructure
  • 1. Design for scalability, availability, and cost optimization
  • 2. Plan for security, compliance, and responsible AI
  • 3. Select appropriate Azure AI Foundry services
Implement generative AI and agentic solutions30–35%- Design and implement intelligent agents
  • 1. Select agent architecture patterns
  • 2. Integrate agents with external systems and data sources
  • 3. Implement multi-agent workflows and orchestration
  • 4. Manage state, memory, and context
- Build generative AI applications
  • 1. Implement prompt engineering and optimization
  • 2. Build retrieval-augmented generation (RAG) solutions
  • 3. Implement function calling and tool use
  • 4. Integrate Azure OpenAI and other models

Microsoft Developing AI Apps and Agents on Azure Sample Questions:

1. Hotspot Question
You have a Microsoft Foundry project that contains an agent.
The agent uses tools to retrieve internal content and call external APIs. The agent is configured to let the model decide when to call the tools.
You need to publish the agent for a compliance workflow. The solution must meet the following requirements:
- Each workflow run must include a retrieval step before generating a
response.
- Tool calls must authenticate by using the published agent's own
identity.
- Tool access must use an identity isolated from other project
resources.
- Tool access must use support audit tracing.
What should you do? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.


2. You have a Microsoft Foundry project that contains a prompt agent used by a customer support web app.
The agent is invoked from a Python service that does NOT run in the Foundry portal.
You need to implement end-to-end tracing to capture latency breakdowns and exceptions across agent runs.
Which two components can you use? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A) the Azure Monitor Agent
B) a Log Analytics workspace
C) Microsoft Sentinel
D) OpenTelemetry
E) Application Insights


3. You have an application named App1 that uses Azure Speech in Foundry Tools to transcribe live calls.
Transcript segments often contain both English and Spanish. App1 sends each segment to Azure Translator in Foundry Tools to translate to another language.
Sometimes, mixed-language segments result in incomplete or incorrect translations.
You need to reduce translation errors. The solution must ensure that the entire transcript is translated successfully.
What should you do before sending the segments to Translator?

A) Split the mixed-language segments into single-language segments and translate each segment separately.
B) Specify English as the source language in the translation request for all the segments.
C) Enable automatic language detection for the translation request.
D) Use document translation to translate the entire transcript as a single document.


4. Hotspot Question
You have a Microsoft Foundry project that contains two agents named PolicyWriter and RskReviewer.
PolicyWriter generates daft updates for customer polices, and RiskReviewer reviews the drafts.
In the visual builder, you need to create a workflow that meets the following requirements:
- Finalizes low-risk updates without manual intervention
- Ensures predictable execution across the agents
- Requires user approval for highs updates
What should you configure? To answer, select the appropriate options in the answer area.
NOTE: Each comet selection is worth one point.


5. You have a Microsoft Foundry project that contains an agent. The agent generates summaries from retrieved policy documents.
You need to improve response completeness. The solution must be implemented in the logic of the application code before responses are returned.
What should you do?

A) Replace the model with a smaller deployment.
B) Decrease the value of the temperature parameter.
C) Increase the value of the presence_penalty parameter
D) Add a retry evaluation before the responses are returned.


Solutions:

Question # 1
Answer: Only visible for members
Question # 2
Answer: D,E
Question # 3
Answer: A
Question # 4
Answer: Only visible for members
Question # 5
Answer: D

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