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 02, 2026
  • Q & A: 159 Questions and Answers

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Microsoft AI-103 Exam Syllabus Topics:

SectionObjectives
Implement Computer Vision Solutions- OCR and document intelligence
- Image classification and object detection
Knowledge Mining and Information Retrieval- Indexing and semantic search
- Azure AI Search configuration
- RAG (Retrieval Augmented Generation) patterns
Implement Natural Language Processing Solutions- Text analytics and summarization
- Translation and multilingual support
- Language understanding and intent recognition
Develop Generative AI Applications and Agents- AI agents architecture
  • 1. Memory and state management
    • 2. Agent orchestration and workflows
      - Azure OpenAI Service integration
      • 1. Prompt engineering and prompt flow design
        • 2. Function calling and tool use
          Plan and Manage Azure AI Solutions- Responsible AI principles and governance
          - Model selection and lifecycle management
          - Azure AI resource provisioning and configuration

          Microsoft Developing AI Apps and Agents on Azure Sample Questions:

          1. A legal team must extract clauses and inferred fields from unstructured contracts. One required field is the contract end date, which is not stated explicitly and must be derived from the start date plus the term. The team has no labelled training data. Which tool best fits?

          A) An Azure AI Document Intelligence custom model trained on labelled samples
          B) Azure Content Understanding using a prebuilt-contract or zero-shot custom analyser
          C) The Azure AI Search semantic ranker
          D) Azure Translator in Foundry Tools


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


          3. 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?

          A) Enable role-based access control (RBAC) for the Azure AI Search resource.
          B) Add a connection to the Azure AI Search resource.
          C) Create a managed private endpoint that connects to the Azure AI Search resource.
          D) Disable key-based access control on the Azure AI Search resource.


          4. Hotspot Question
          You need to create a new resource that will be used to perform sentiment analysis and optical character recognition (OCR). The solution must meet the following requirements:
          - Use a single key and endpoint to access multiple services.
          - Consolidate billing for future services that you might use.
          - Support the use of Azure Vision in Foundry Tools in the future.
          How should you complete the HTTP request to create the new resource? To answer, select the appropriate options in the answer area.
          NOTE: Each correct selection is worth one point.


          5. You have a Microsoft Foundry project that contains an agent and an image generation model deployment.
          The agent generates original images from user-supplied product photos.
          You need to ensure that the generated images maintain the product identity and visual characteristics of the provided photo.
          What should you do?

          A) Set the input_fidelity parameter to high.
          B) Include a prompt and input image in the request.
          C) Decrease the value of the temperature parameter.
          D) Apply a groundedness detection filter.


          Solutions:

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

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