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

AI-103 Exam Questions
  • Exam Code: AI-103
  • Exam Name: Developing AI Apps and Agents on Azure
  • Updated: Aug 29, 2026
  • Q & A: 159 Questions and Answers
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Microsoft AI-103 exam demo

Microsoft AI-103 Exam Syllabus Topics:

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

Microsoft Developing AI Apps and Agents on Azure Sample Questions:

Question 1

You have a Microsoft Foundry project named Project1 that contains the following:
- An OpenAPI tool that calls an external API
- A project connection named Connection1 that stores the API key of the external API When an agent calls the OpenAPI tool, the API returns a 401 unauthorized error, and traces show that the API key header is NOT being sent.
You need to ensure that the OpenAPI tool automatically includes the API key from Connection1 on all requests.
What should you do?

A. Enable identity passthrough so that the tool uses the Microsoft Entra token of the caller.
B. Configure the tool to use the default connection of Project1.
C. Connect the tool to Connection1.
D. Add the API key header manually to the OpenAPI specification.


Question 2

Hotspot Question
You need to recommend a plan to create a customer support agent by using the Microsoft Foundry Agent Service. The agent must meet the following requirements:
- Retain user preferences across multiple conversations.
- Enable users to provide contextual grounding by directly uploading
documents during a chat.
Which Foundry capability should you recommend for each requirement? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.


Question 3

You have a Microsoft Foundry project that contains a customer support agent built on a deployed chat model.
The agent responses are validated by using an automated testing system that compares generated answers to stored expected outputs. Identical prompts must return consistent response to prevent automated test failures.
You need to reduce response variability, without modifying the prompt or reducing factual accuracy.
What should you do for the model?

A. Increase the max_tokens parameter.
B. Increase the temperature parameter.
C. Decrease the temperature parameter.
D. Remove stop sequences from the requests.


Question 4

You are developing prompts for a Micosoft Foundry project that classifies incoming support tickets by category.
You need to improve accuracy by showing the model how correct classifications look, without retaining the model or storing knowledge permanently.
Which prompt engineering approach should you use?

A. Retrieval Augmented Generation (RAG)
B. zero-shot learning
C. chain of thought
D. few-shot learning


Question 5

You have a Microsoft Foundry project that contains an agent.
You need to process mixed-format documents that contain scanned text, tables, and multicolumn layouts. The extracted content must preserve the document structure and be converted into the Markdown format for downstream reasoning.
What should you configure first?

A. a generative chat completion request
B. an Azure Content Understanding in Foundry Tools analyzer
C. an Azure OpenAI Responses API call that uses a multimodal model
D. an Azure Language in Foundry Tools text analysis model deployment


Solutions:

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

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