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

AI-103 real exams

Exam Code: AI-103

Exam Name: Developing AI Apps and Agents on Azure

Updated: Sep 02, 2026

Q & A: 159 Questions and Answers

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Microsoft AI-103 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Implement computer vision solutions10-15%- Analyze visual content
  • 1. Implement OCR and visual understanding
  • 2. Use multimodal vision APIs
  • 3. Process images and video
Topic 2: Implement agentic solutions20-25%- Build AI agents
  • 1. Configure memory and orchestration
  • 2. Create autonomous and multi-agent workflows
  • 3. Integrate tools and external knowledge
- Manage agent operations
  • 1. Secure agent interactions
  • 2. Implement scalable deployments
  • 3. Monitor and debug agents
Topic 3: Plan and manage Azure AI solutions25-30%- Plan Azure AI resources
  • 1. Manage deployments and monitoring
  • 2. Select Azure AI services and Foundry resources
  • 3. Configure authentication and security
- Manage AI solution lifecycle
  • 1. Implement CI/CD for AI applications
  • 2. Monitor model and application performance
  • 3. Apply responsible AI practices
Topic 4: Implement generative AI solutions25-30%- Develop generative AI applications
  • 1. Implement prompt engineering
  • 2. Build retrieval-augmented generation solutions
  • 3. Use Azure OpenAI and Foundry models
- Optimize and evaluate models
  • 1. Configure content filters and safety
  • 2. Evaluate responses and grounding
  • 3. Implement multimodal AI capabilities
Topic 5: 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

Microsoft Developing AI Apps and Agents on Azure Sample Questions:

Question 1

You have a product support manual.
You need to build a product support chatbot based on the manual. The solution must minimize development effort and costs.
What should you use?

A. Azure AI Language Custom question answering
B. Azure AI Phi-3-medium with fine-tuning
C. Azure OpenAI GPT-4 with grounding data that uses Azure AI Search
D. Azure AI Document intelligence


Question 2

Hotspot Question
You have a Microsoft Foundry project that contains an agent.
The agent accepts user-uploaded screenshots and uses a multimodal chat model.
Some screenshots contain potentially malicious embedded text.
You need to prevent a prompt injection attack and ensure that third-party content is treated as lower trust.
How should you configure prompt shields for document attacks? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.


Question 3

Hotspot Question
You have a Microsoft Foundry project that contains an internal Q&A agent.
Users report the following issues when they ask the agent questions:
- An increase in the following response: "No relevant information
found"
- Periodic HTTP 429 rate limit exceeded errors during peak hours
You need to identify whether each issue is caused by model unavailability, resource limits, or inference failures.
What should you do? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.


Question 4

You have a Microsoft Foundry project.
You plan to build a customer support solution that contains an agent. The solution must meet the following requirements:
- Provide accurate, context-aware responses grounded in internal
product documentation stored in Azure AI Search.
- Require deep, multi-step reasoning across long contexts.
- Generate detailed natural language responses.
Which type of model should you use to power the agent?

A. a multimodal model
B. a small language model (SLM)
C. a large language model (LLM)
D. a key phrase extraction model


Question 5

You have a Microsoft Foundry project that contains an agent.
The agent uses a knowledge source built from documents stored in Azure Blob Storage. The documents include digitally scanned PDFs that contain multipage tables.
You have an ingestion job that extracts only plain text, causing loss of table structure, headings, and page-number metadata.
Users frequently ask questions that require the retrieval of specific table rows across the pages.
You need to configure an ingestion job for a Retrieval Augmented Generation (RAG) pipeline that performs optical character recognition (OCR) on scanned PDFs, preserves tables and headings as structure-aware chunks, and stores page-number metadata with each chunk.
How should you configure the ingestion job?

A. Use OCR and page-level chunking.
B. Use page-level OCR extraction and store each page as a single chunk.
C. Use basic parsing and fixed-size chunking.
D. Use advanced data parsing to reingest the documents.


Solutions:

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

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