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

  • Exam Code: Microsoft
  • Exam Name: Developing AI Apps and Agents on Azure
  • Updated: Sep 12, 2026
  • Q & A: 159 Questions and Answers

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About Microsoft Developing AI Apps and Agents on Azure : Microsoft Exam

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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%- Implement image analysis and processing
  • 1. Use Azure AI Vision services
  • 2. Extract text and structure from images
  • 3. Implement object detection and image classification
- Build multimodal solutions
  • 1. Process and analyze video content
  • 2. Combine vision and language capabilities
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-to-text and text-to-speech integration
  • 2. Speech translation and speaker recognition
Implement generative AI and agentic solutions30–35%- Build generative AI applications
  • 1. Integrate Azure OpenAI and other models
  • 2. Implement prompt engineering and optimization
  • 3. Build retrieval-augmented generation (RAG) solutions
  • 4. Implement function calling and tool use
- 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
Plan and manage Azure AI solutions25–30%- Manage AI solution development lifecycle
  • 1. Integrate with CI/CD pipelines
  • 2. Configure model and agent deployments
  • 3. Monitor and maintain AI workloads
- Design Azure AI infrastructure
  • 1. Select appropriate Azure AI Foundry services
  • 2. Design for scalability, availability, and cost optimization
  • 3. Plan for security, compliance, and responsible AI
Microsoft Developing AI Apps and Agents on Azure Sample Questions:
Question #1

You have a Microsoft Foundry agent that grounds responses from an Azure Search index that contains the following:
- Searchable text fields for product names and product codes
- A vector field that stores embeddings for product descriptions
You need to ensure that users can query the index by using the following:
- Exact product names or codes
- Natural language descriptions of the products
What should you configure?

  • A. vector search only
  • B. keyword search only
  • C. hybrid search
  • D. semantic search only
Answer: C

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Question #2

You are creating an image-editing workflow in a Microsoft Foundry project.
The workflow must meet the following requirements:
- Ensure that background objects can be removed by applying a mask-
based inpainting edit.
- Preserve the original lighting and style of the edited images.
- Use the built-in image editing controls, NOT a custom model.
You need to ensure that image edits apply exclusively inside the masked area.
How should you configure the workflow?

  • A. Enable image_to_image mode and a high-strength value to regenerate the full image based on the prompt.
  • B. Enable text_to_image mode and a prompt describing the desired background removal.
  • C. Enable mask_inpainting and supply both the input image and a mask indicating which part of the image to modify.
  • D. Set generation mode to image_variation and provide the original image as a reference.
Answer: C

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Question #3

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. agentic Retrieval Augmented Generation (RAG)
  • D. chain of thought
Answer: C

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Question #4

Hotspot Question
You have a Microsoft Foundry project that contains a customer support application.
You create an evaluation named Run1 that has the following configurations:
- Includes risk and safety metrics
- Includes the protected material evaluation
- Includes harmful content metrics that use a medium severity threshold You create an evaluation named Run2 that has the following configurations:
- Includes risk and safety metrics
- Includes the protected material evaluation
- Includes harmful content metrics that use a high severity threshold
You run both evaluations against a dataset named DB1 and receive the following results:
- Content harm defect rate of Run1: 12%
- Content harm defect rate of Run2: 4%
- Protected material evaluation of Run1: 6%
- Protected material evaluation of Run1: 6%
You start a fine-tuning job by using DB1. The job fails during automatic RAI checks for multiple content harm types.
You discover that the content filtering configuration is set to high severity.
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.

Answer:


Explanation:
Box 1: No
Changing the content filtering configuration to low severity will not resolve the fine-tuning job issues.
Box 2: Yes
The difference between a 12% defect rate in Run1 and a 4% defect rate in Run2 is entirely consistent with the different severity thresholds configured for the two evaluations.
Box 3: Yes
The protected material evaluation metric is entirely unaffected by changes to the content harm severity threshold.
Reference:
https://learn.microsoft.com/en-us/python/api/azure-ai-evaluation/azure.ai.evaluation

Question #5

You have a web app named App1 that processes user prompts by integrating with a Microsoft Foundry project named Project1. App1 performs the following actions:
- Sends prompts directly to a model by using the Azure OpenAI Responses API
- Invokes the Azure AI Content Safety tool by using a Foundry
connection within the same request
You need to configure end-to-end visibility into each step of the request workflow.
What should you do?

  • A. Enable logging by using the client SDK for Content Safety.
  • B. Route requests through the Azure OpenAI endpoint.
  • C. Enable logging by using Foundry Local.
  • D. Enable application tracing in Project1.
Answer: D

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