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Microsoft AI-103 Exam Overview:

Certification Vendor:Microsoft
Exam Name:Developing AI Apps and Agents on Azure
Exam Number:AI-103
Exam Price:$165 USD
Exam Format:Scenario-based, Hands-on labs, Multiple choice, Case study
Exam Duration:100 minutes
Real Exam Qty:40-60
Certificate Validity Period:1 year
Related Certifications:Microsoft Certified: Azure AI Apps and Agents Developer Associate
Available Languages:English
Passing Score:700
Sample Questions:Microsoft AI-103 Sample Questions
Exam Way:Online proctored or test center
Pre Condition:Experience with Python programming and familiarity with Azure AI services, generative AI, and Microsoft Foundry is recommended.
Official Syllabus URL:https://learn.microsoft.com/en-us/credentials/certifications/resources/study-guides/ai-103

Microsoft AI-103 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Plan and manage Azure AI solutions25-30%- Manage AI solution lifecycle
  • 1. Monitor model and application performance
  • 2. Apply responsible AI practices
  • 3. Implement CI/CD for AI applications
- Plan Azure AI resources
  • 1. Configure authentication and security
  • 2. Select Azure AI services and Foundry resources
  • 3. Manage deployments and monitoring
Topic 2: Implement text analysis and information extraction solutions10-15%- Analyze and extract information
  • 1. Extract entities and structured data
  • 2. Implement natural language processing
  • 3. Use document intelligence services
Topic 3: 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. Monitor and debug agents
  • 2. Secure agent interactions
  • 3. Implement scalable deployments
Topic 4: Implement generative AI solutions25-30%- Optimize and evaluate models
  • 1. Evaluate responses and grounding
  • 2. Configure content filters and safety
  • 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
Topic 5: Implement computer vision solutions10-15%- Analyze visual content
  • 1. Use multimodal vision APIs
  • 2. Process images and video
  • 3. Implement OCR and visual understanding

Microsoft Developing AI Apps and Agents on Azure Sample Questions:

Question #1

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 Retrieval Augmented Generation (RAG) evaluator
  • B. a custom guardrail
  • C. model fine-tuning
  • D. a groundedness evaluator
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #2

You have an Azure subscription that contains an Azure Al Foundry instance named AI1.
You have an app that automatically triages and resolves issues presented in the log files of a system.
You create an incident manager agent and a DevOps agent that collaborate to resolve the issues.
You need to ensure that the incident manager agent can assign work to the DevOps agent. The solution must minimize development effort.
What should you do?

  • A. Create a plugin for the incident manager agent.
  • B. Configure prompt flow for AI1.
  • C. Configure a connected agent for AI1.
  • D. Create a plugin for the DevOps agent.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #3

You have an Azure subscription that contains an Azure App Service app named App1.
You provision a Microsoft Foundry Service resource named CSAccount1.
You need to configure App1 to access CSAccount1. The solution must minimize administrative effort.
What should you use to configure App1?

  • A. the endpoint URI and an OAuth token
  • B. the endpoint URI and a shared access signature (SAS) token
  • C. a system assigned managed identity and an X.509 certificate
  • D. the endpoint URI and subscription key
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #4

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. Application Insights
  • B. Microsoft Sentinel
  • C. OpenTelemetry
  • D. the Azure Monitor Agent
  • E. a Log Analytics workspace
Reveal Solution  Discussion  0

Correct Answer: A,C  🗳️

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Question #5

You are building a speech processing solution in Microsoft Foundry for a customer support platform.
The platform will transcribe live phone calls, so that supervisors at your company can view call transcripts and detect issues while the calls are in progress. The call audio will arrive as a continuous stream from the telephony system.
You need to ensure that the call transcripts appear within only a few seconds of the audio stream.
What should you do?

  • A. Use speech translation to generate the transcripts into multiple languages.
  • B. Use text to speech by using a custom neural voice.
  • C. Run a batch transcription job on recorded audio files.
  • D. Use real-time speech to text to process streaming audio input.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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