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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 Duration:100 minutes
Certificate Validity Period:1 year
Related Certifications:Microsoft Certified: Azure AI Apps and Agents Developer Associate
Available Languages:English
Exam Format:Case study, Scenario-based, Multiple choice, Hands-on labs
Passing Score:700
Real Exam Qty:40-60
Exam Price:$165 USD
Sample Questions: DOWNLOAD DEMO
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
Plan and manage Azure AI solutions25-30%- Manage AI solution lifecycle
  • 1. Apply responsible AI practices
  • 2. Monitor model and application performance
  • 3. Implement CI/CD for AI applications
- Plan Azure AI resources
  • 1. Configure authentication and security
  • 2. Manage deployments and monitoring
  • 3. Select Azure AI services and Foundry resources
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. Implement prompt engineering
  • 2. Use Azure OpenAI and Foundry models
  • 3. Build retrieval-augmented generation solutions
Implement text analysis and information extraction solutions10-15%- Analyze and extract information
  • 1. Use document intelligence services
  • 2. Implement natural language processing
  • 3. Extract entities and structured data
Implement computer vision solutions10-15%- Analyze visual content
  • 1. Implement OCR and visual understanding
  • 2. Use multimodal vision APIs
  • 3. Process images and video
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. Secure agent interactions
  • 2. Monitor and debug agents
  • 3. Implement scalable deployments

Your AI-103 Questions, Answered by PracticeMaterial

Prioritize ruthlessly. Start with the heaviest Microsoft Developing AI Apps and Agents on Azure domains — the outline weights tell you where the points are — and run timed PracticeMaterial engine sessions on those first, reading every score honestly. Skip trivia and scattered material entirely; 159 practice questions for the AI-103 exam cover the exam's actual objectives, and every one is verified. When your remaining hours are few, a focused bank beats a thousand random pages, and a calm final review beats a panicked one.
Trained and genuinely enthusiastic people. Every support member completes rigorous training before handling real customer questions, and the team approaches AI-103 candidates with real eagerness to help — available 24/7, so you can pose any question during your preparation and get a prompt answer. Their mission includes calming the nerves that exams tend to create, and if things still go wrong, they will walk you through the refund or exchange options with the same care.
You need 700 to pass, and registration costs $165 USD. Under deadline pressure, knowing both numbers keeps your plan concrete — and verified PracticeMaterial material keeps the preparation itself efficient.
About 40-60 questions in 100 minutes minutes. Timed practice against that exact limit with 159 practice questions for the AI-103 exam turns exam day from a surprise into a repeat performance.
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Let the official Microsoft Developing AI Apps and Agents on Azure weights decide:
  • Implement computer vision solutions (10-15%)
  • Plan and manage Azure AI solutions (25-30%)
  • Implement text analysis and information extraction solutions (10-15%)
Heavy domains get the long, careful sessions; light ones get a brisk review. It is the surest way to convert your last hours into exam points.
Experience with Python programming and familiarity with Azure AI services, generative AI, and Microsoft Foundry is recommended.

Microsoft Developing AI Apps and Agents on Azure Sample Questions:

Question #1

You have a large collection of image files and PDF documents stored in an Azure Storage account. The documents contain tabular data.
You need to extract the tables into a structured format that can be imported into a database. The solution must minimize development effort. What should you use?

  • A. Azure Content Understanding in Foundry Tools
  • B. Azure Document Intelligence in Foundry Tools
  • C. Azure Vision in Foundry Tools
  • D. Azure AI Video Indexer
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #2

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?

  • A. the project URL
  • B. the custom speech project ID
  • C. the project ID
  • D. the custom speech endpoint URL
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #3

Hotspot Question
You have a Python application that redacts sensitive information before sending prompt text to a language model. The application has the following code:

For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.

Reveal Solution  Discussion  0

Correct Answer:


Explanation:
Box 1: No
The audit list will not include entity records for "Contact" and "SSN" because neither word is a target PII entity type defined in the configuration.
The code limits scanning to Person and PhoneNumber via the piiCategories list.
"Contact" Definition: This is a regular English verb/noun, not a person's name or a telephone number.
"SSN" Definition: While "SSN" is a text label that points to sensitive data, it is a descriptor rather than an actual Social Security Number.
Box 2: Yes
For the given sample_text, text_for_model will include both or [email protected] and 859-
98-0987 completely unredacted.
The payload explicitly restricts the Personally Identifiable Information (PII) recognition to only two specific categories by setting piiCategories: ["Person", "PhoneNumber"].
Email Address Excluded: Because the Email category is omitted from the configuration list, the service bypasses the email address ([email protected]) and leaves it fully intact.
SSN Excluded: Similarly, because the USSSN (or equivalent Social Security Number) category is not specified in the piiCategories array, the SSN (859-98-0987) is completely ignored by the redaction policy and remains visible.
Box 3: Yes
text_for_model will contain entity type masks for "John Doe" and "312-555-1234", but only for those two specific items.
The piiCategories array explicitly requests Person and PhoneNumber.
Applied Redaction: The Azure AI Language service will replace "John Doe" and "312-555-1234" with masks like * or entity labels (depending on exact policy settings).
Skipped Data: The email ([email protected]) and the SSN (859-98-0987) will not be redacted because their categories (Email and USSSN) were omitted from your piiCategories list.
Reference:
https://learn.microsoft.com/en-us/azure/ai-services/language-service/personally-identifiable-information/concepts/conversations-entity-categories

Question #4

You have an Azure subscription that contains an Azure OpenAI resource.
You need to build an app that will suggest product names from a given product description.
Which model should you use?

  • A. GPT-4
  • B. Whisper
  • C. DALL-E
  • D. embeddings
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

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 configure personalized user interactions for Agent1. The solution must meet the business requirements.
What should you include in the solution?

  • A. tools
  • B. memory
  • C. guardrails
  • D. knowledge
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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