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Microsoft Azure AI Engineer Associate AI-103

AI-103

Exam Code: AI-103

Exam Name: Developing AI Apps and Agents on Azure

Updated: Jul 27, 2026

Q & A: 159 Questions and Answers

AI-103 Free Demo download:

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Microsoft AI-103 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Implement agentic solutions20-25%- Manage agent operations
  • 1. Implement scalable deployments
  • 2. Secure agent interactions
  • 3. Monitor and debug agents
- Build AI agents
  • 1. Integrate tools and external knowledge
  • 2. Configure memory and orchestration
  • 3. Create autonomous and multi-agent workflows
Topic 2: Implement generative AI solutions25-30%- Develop generative AI applications
  • 1. Build retrieval-augmented generation solutions
  • 2. Use Azure OpenAI and Foundry models
  • 3. Implement prompt engineering
- Optimize and evaluate models
  • 1. Implement multimodal AI capabilities
  • 2. Configure content filters and safety
  • 3. Evaluate responses and grounding
Topic 3: Implement text analysis and information extraction solutions10-15%- Analyze and extract information
  • 1. Use document intelligence services
  • 2. Extract entities and structured data
  • 3. Implement natural language processing
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:

1. Hotspot Question
You have a Microsoft Foundry project that contains an agent.
The agent uses a stored access key to retrieve secrets from an Azure key vault, which violates a keyless-credentials requirement.
You need to ensure that the agent can retrieve the secrets. The solution must follow the principle of least privilege.
What should you configure? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.


2. 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) Azure Translator in Foundry Tools
D) The Azure AI Search semantic ranker


3. Hotspot Question
You have a Python application named App1 that integrates with a Microsoft Foundry project named Project1.
You need to ensure that App1 meets the following requirements:
- Authenticates by using a Microsoft Entra managed identity
- Sends prompts to a deployed model by using the Azure OpenAI Responses API How should you complete the Python code? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.


4. You plan to build an agent that will combine and process multiple files uploaded by users.
You are evaluating whether to use the Azure AI Agent Service to develop the agent.
What is the maximum size of each file that can be uploaded to the service?

A) 1 GB
B) 10 MB
C) 512 MB
D) 256 MB


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


Solutions:

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

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